Polarcus returns to profit on restructuring gains

Polarcus, a marine geophysical company, on Wednesday posted a profit for the first quarter of the year, compared to a loss in the same period last year owing to financial restructuring. 

Polarcus’ net profit for the first quarter of the year totaled $145.9 million, compared to a net loss of $26.4 million in the same period last year, mainly due to the accounting gain of $177.8 million on restructuring in the quarter and a reduction in impairment charge.

The geophysical company’s revenues for the first quarter were down to $63.7 million from $81.1 million in the same period last year over decrease in multi-client, bareboat and management revenues that were down 30%.

Polarcus’ completion of financial restructuring resulted in a $224 million increase to book equity and $351 million reduction in the carrying value of debt.

Rod Starr, Polarcus Chief Executive Officer, said: “The company’s continued focus on expenses including the organizational changes announced in February 2016 are delivering lower underlying operating costs for the company. As expected, the quarter incurred a number of non-recurring costs related to the transformation of the company, including expenses related to the financial and organizational restructurings.”

Starr added: “During the quarter, the company completed its financial restructuring, reducing the carrying value in the balance sheet of the company’s debt by $351 million and increasing the company’s equity by $224 million. The restructuring provides the Company with a sound and predictable debt service structure over a period where we expect to see a continued challenging market.”

The geophysical company’s capital expenditure increased during the quarter to $12.8 million from 0.9 million in the 4Q 2015 due to purchase of a complete in-sea seismic acquisition system and Polarcus Alima having a five year classification survey, but decreased from $15.3 million in the 1Q 2015.

According to Polarcus, the marine seismic market continues to be challenging, with exploration spending by oil companies remaining subdued, lower tender activity across all geographic regions, and a reduced appetite from prospective clients for well prefunded multi-client projects. In addition, Polarcus noted that competition for proprietary contracts remains high.

The estimated value of Polarcus’ backlog measured at the end of the quarter is $200 million, including contracts awarded post-quarter end.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Posted on April 27, 2016 with tags , .

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply