Spectrum, a Norwegian provider of seismic data and seismic imaging services to the oil and gas industry, recorded a smaller loss for the year’s second quarter as its revenues increased compared to the prior-year period.
In its quarterly report on Friday, Spectrum said that its net loss dropped to $2.98 million in this year’s second quarter from $10.99 million in the prior-year quarter.
Further, the company’s net multi-client revenues increased by 130% to $30.4 million in the second quarter of 2017 from $13.2 million in the same period of 2016. The biggest chunk of multi-client revenues, 71%, came from Africa.
Prefunding recognized in the quarter also increased totaling $22.2 million versus $5.4 million in 2Q 2016 and late sales ended at $8.2 million compared to $7.8 million in the year-before period.
Total net operating revenues for the group in the second quarter 2017 were $30.4 million compared to $13.6 million in the prior-year quarter.
Sales from the multi-client library and prefunding of new projects constitute the main revenue streams for the company and fund the operation and new investments in multi-client projects.
Due to the fact that attracting prefunding is more challenging in the current market, Spectrum said it is focusing on sales from its existing library and exercising caution in terms of new multi-client investments decisions.
Looking ahead, the company said: “Spectrum believes 2016 and 2017 will turn out to represent the trough in the current cycle. It is of outmost importance to carefully evaluate all potential new projects based on prefunding and sales potential. Other project funding structures could also be evaluated to reduce Spectrum’s uncovered risk. Spectrum sees a more attractive pipeline of multi-client investment projects through 2017 compared to the pipeline of projects in 2015 and 2016.”
Offshore Energy Today Staff