SeaBird Exploration, a seismic survey company, has recorded a net loss of $20.2 million in the third quarter of 2014, compared to a net income of $4.0 million in the same period in 2013.
The revenues were $22.7 million versus $50.9 million in the third quarter of 2013. Seabird said that the revenues dropped primarily due to lower fleet utilization during the quarter.
In its explanation for the drop in the results, SeaBird has blamed weak demand in the global seismic market, as oil companies are cutting spending due to the plunging oil prices.
SeaBird, which operates a fleet of mainly 2D seismic vessels, was also pressured by the large amount of 3D seismic vessels operating in the 2D markets.
The company said that it expected that the weak market would hit its earnings and vessel utilization for the rest of the year.
“Given the challenging market situation, the company is actively looking at savings initiatives to reduce the company’s cost level. As a part of this effort, we are also reviewing the lay-up of vessels until market demand recovers.”
“Longer-term, we expect that the scheduled exit of a number of 3D vessels currently operating in our markets will benefit the company,” SeaBird said.