SeaBird Suffers Amid Weakening Demand for Surveys
Seismic survey firm SeaBird Exploration reported Friday that it fell into loss during the third quarter of 2014 as it saw global demand for seismic surveys weaken substantially. SeaBird said that as well as a reduction in the total volume of contracted surveys, the large number of 3D seismic acquisition vessels operating in the 2D and source markets increased pressure on the company's core business segments.
SeaBird said that, in the light of the decline of oil prices, it expects oil companies to take a more cautious spending approach. Although the firm still sees interest in longer-term 2D seismic contract opportunities from select clients, it expects the current market softness to have an impact on its earnings and utilization in the remaining part of 2014.
The firm's revenue for the third quarter was $22.7 million – a decrease of 55 percent on 3Q 2013 and down 49 percent on 2Q 2014. It made an EBITDA loss of $2.1 million (3Q 2013: $13.2 million profit), while it also registered a net loss of $20.2 million for 3Q 2014 (3Q 2013: $4 million profit).
SeaBird's vessel utilization for 3Q 2014 was 65 percent.
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