SeaBird 4Q loss deepens

SeaBird Exploration Plc, a global provider of marine 2D and 3D seismic data for the oil and gas industry, announced their Q4 and preliminary 2013 report.

The company reported a net loss of $8.7 million for Q4 2013 (net loss $5.4 million in the same period in 2012).

Revenues were $37.2 million in Q4 2013 ($34.9 million). The increased revenues are primarily due to fleet composition and higher multi-client sales in Q4 2013, partly offset by greater vessel repositioning during the quarter resulting in lower contract revenues.

Cost of sales was $28.5 million in Q4 2013 ($24.4 million). The increase is mainly due to fleet composition with the chartering of the Geo Pacific at the end of 2013, partly offset by lower vessel utilization.

SG&A was $5.1 million in Q4 2013, up from $4.1 million in Q4 2012. The increase is principally due to an increase in employee numbers in line with an increased fleet size and higher consultancy costs.

EBITDA was $3.9 million in Q4 2013 ($6.8 million).

Preliminary report shows, revenues for 2013 were $177.8 million, an increase of 9% compared to 2012. Contract revenues for 2013 were $166.8 million, up 18% from 2012. EBITDA was $31.9 million compared to $38.6 million for 2012. EBIT for 2013 was $4.9 million compared to $4.2 million for the prior year.

Net profit from discontinued operations was $3.9 million for Q4 2013 (loss of $0.6 million). Discontinued operations represent the remaining contractual obligations of the ocean bottom node (OBN) business which was divested in Q4 2011. The profit from discontinued operations is due to the reassessment of selected historical tax provisions carried out in Q4 2013.

Revenues were $37.2 million in Q4 2013 ($34.9 million). The increased revenues are primarily due to fleet composition and higher multi-client sales in Q4 2013, partly offset by greater vessel repositioning during the quarter resulting in lower contract revenues.

Fourth quarter revenues and earnings were down from the previous quarter in light of reduced utilization across the fleet. In addition to normal seasonal variances, global demand for 2D, niche 3D and source seismic surveys was substantially weaker than prior quarters during the year.

Multi-client sales were significantly higher in the fourth quarter. The increase in multi-client revenues was a result of stronger late sales. A substantial portion of multi-client revenues for the period related to earlier surveys which collectively have limited remaining book value. Approximately 30% of multi-client sales for the quarter related to surveys completed in 2013.

Fourth quarter revenues were down compared to the prior period in both the Asia Pacific (APAC) and North and South America (NSA) regions. Revenues in APAC and NSA were impacted by reduced demand as well as repositioning. Comparatively, revenues in Europe, Africa and the Middle East (EAME) strengthened. Sales in APAC of $13.4 million accounted for 36%, while NSA sales of $13.0 million represented 35% of total revenues.

In spite of the slow-down experienced in the fourth quarter, SeaBird is currently seeing a moderate improvement in global seismic demand. Nevertheless, SeaBird expects that the market softness is likely to have an impact on earnings in the first part of 2014. Pricing has remained firm in all regions and SeaBird expects this to remain stable through the first half of the year.

Multi-client late sales were strong in the fourth quarter and SeaBird expects to capitalize further on our existing library in 2014. However, timing of multi-client sales is difficult to predict. Furthermore, SeaBird continues to see a more challenging environment for obtaining prefunding for new surveys.

The company views multi-client investment as a core part of its operation and will capitalize on multi-client investment opportunities with attractive risk reward characteristics. SeaBird are actively reviewing opportunities in the multi-client sector.

Press Release, February 26, 2014

 

Share this article

Follow Offshore Energy Today

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 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 1

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation…

read more >

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

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