Marine seismic firm Polarcus has lowered its full year guidance for the estimated multi-client prefunding for 2016.
The company has said that it expects to report a prefunding level of 120 percent for the full year 2016, down from previously guided 150 percent.
Also, the estimated multi-client investment of $45 million for the full year 2016 remains unchanged, Polarcus said.
According to Polarcus, its current multi-client project in Brazil has been negatively impacted by extraordinary operating conditions, including impacts from poor weather conditions and extreme barnacle growth, which will extend the duration of the project into February 2017.
The slower production rate on the project will negatively affect the recognition of committed prefunding in Q4 2016, Polarcus said.
Additionally, during the fourth quarter 2016 the company has experienced standby time on certain vessels “due to unforeseen permit delays on client projects.”
This, Polarcus said, will have a negative impact on the company’s utilization and revenue generation in the quarter. The company expects to release the fourth quarter utilization numbers in the first week of January 2017.
Rod Star Polarcus CEO, said that high market competition is expected to continue in the near term resulting from the over-supply of vessel capacity relative to client tender volumes.
He also said that in spite of the market conditions, Polarcus expects to secure additional awards before year end. Star did not say where these expected awards could come from. In a recent interview with Offshore Energy Today, he said the the highest number of tenders these days comes from from Asia Pacific and South America, with less activity in Europe, Africa and U.S. GOM.