Norwegian marine seismic data provider MultiClient Geophysical (MCG) narrowed its net loss and boosted revenues during the third quarter of 2016. When it comes to multi-client seismic market, the company claims the worst is behind.
The seismic data provider on Friday posted a net loss $1 million, compared to net loss of $3.8 million in 3Q 2015.
MCG’s revenues for the third quarter 2016 increased to $2.7 million, compared to $2.1 million in 3Q 2015. The company said that 53% of revenue came from the Americas, 44% from Norway, and the remaining 2% from Asia Pacific. MCG also said that 53% of the revenue was prefunding and 47% is related to late sales.
The seismic player reduced its operating expenses by nearly 40% compared to 3Q 2015 as a consequence of cost saving efforts by management and lower activity levels.
‘The worst is behind’
According to MCG, the multi-client seismic market, in contrast to the contract market, seems to have recovered somewhat from the historic low during the first half of 2016. Budgets are still very limited, but there are signs of willingness from the oil companies to license seismic data in areas with active license rounds ongoing, the company stated in its 3Q 2016 report.
MCG noted that, due to the low and unpredictable oil price, the company expects oil companies to continue to be careful in their seismic spending also in 2017.
“However, when it comes to multi-client seismic, we believe the worst period is behind us,” the company concluded.
Offshore Energy Today Staff