Polarcus 2Q Results: Riding Out the Seismic Storm
Norwegian seismic surveyor Polarcus said the outlook for the seismic market "remains highly competitive" as the firm reported a 33-percent decrease in second-quarter revenues to $91.7 million (2Q 2014: $137.6 million). However, the firm believes it is "riding out the storm."
Polarcus saw its profit at the EBITDA level fall 23 percent to $38.4 million, although the firm saw its EBITDA margin increase from 36 percent to 42 percent. The company also said that it had improved its liquidity position by partially divesting its multi-client seismic data library.
"The seismic market remains highly competitive and the outlook uncertain, but we moved quickly early in the year with our focus on business fundamentals that continues unabated. Our second quarter results are bearing the fruits of that labor; costs are down, backlog is up and liquidity has improved," Polarcus CEO Rod Starr said in a company statement.
Starr added that the firm's "back-to-fundamentals" strategy, which focuses on operational excellence and technical innovation, has seen the firm's employees pull together "to demonstrate our industry leadership during these challenging times". He also noted that the firm's seismic fleet "continues to deliver rock-solid performance, even when undertaking the most complex projects in challenging remote locations such as the Russian Far East" and that its geophysicists "continue to innovate", highlighting Polarcus's XArray combined acquisition and processing solution that he said saves the firm both time and cost.
Polarcus's fleet is 100-percent booked for the third quarter, according to Starr, and has more than 80-percent backlog coverage for the remainder of the year "with the expectation of more to come as several major industry projects are yet to be awarded".
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