Polarcus Tests Market, Improves Earnings

By Eric Haun
Friday, August 08, 2014
Polarcus Adira

Polarcus Limited today announced the release of its second quarter 2014 financial statements in which it reported revenue rose 13% sequentially and 5% YoY to $137.6 million while. The company highlighted EBITDA of $49.9 million and EBIT of $23.8 million, a net profit increase to $9.2 million, from 6.3 million in Q2 2013, net cash flow from operations of $45.6 million, a strong Multi-Client prefunding of 92% and 30% reduced financing costs YoY with improved maturity profile.

Polarcus recorded higher revenue per vessel and improved margins in Q2 2014 compared to Q1 2014, as the quarter saw an end to the downward trend in margins recorded sequentially over the previous two quarters. The improved revenue is driven by higher contract utilization and operational efficiency, the company said. Multi-Client sales of existing data library remained elusive due to delayed client purchasing decisions, however subsequent to the quarter end a $6.3 million sale was booked originating from the second tranche of the U.K. 27th licensing round.

A continued competitive market environment combined with increased uncertainty on Multi-Client sales, leads the company to reduce its full year EBITDA guidance to approximately $200 million.

Polarcus Naila returned to operation after a propulsion upgrade which increased her towing and streamer capacity to match the capability of the company's four high performance A-class vessels. The vessel now operates with a significantly improved cost base as well as improved earnings potential through the improved towing capability. $20 million financing relating to the propulsion and productivity enhancement was received post quarter end.

The company said it has continued to improve its financial position by extending its debt maturity profile and reducing its financing costs through issuing a NOK 350 million bond. The new bond carries a lower effective interest rate than the old debt the funds were used to refinance. The transactions were finalized post quarter end.

Commenting on the results, Rolf Rønningen, CEO Polarcus, said, "The company has successfully delivered improved margins in the quarter despite a testing market that has seen tendering levels flat year-on-year and Multi-Client late sales delayed. The competitive market environment meanwhile has had an impact on backlog, however we remain fully focused on improving margins and increasing visibility on future Contract activity. We are also now well advanced on building a strong, well-funded, multi-client project pipeline."

polarcus.com
 

  • Rolf Rønningen

    Rolf Rønningen

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Maersk Falls into the Red

Maersk Line posted a steep decline in profit last year to $1.3bn, well down from the 2014 result of $2.3bn and below its most recent forecast as freight rate declines

Maersk Line to Face Miserable 2016

In a video interview Group CEO of AP Møller-Maersk Nils S. Andersen comments on the 2015 full year result, low oil and freight rates, and the challenges and opportunities

Shipping Firms Poised to Settle EU Probe

Fifteen container liner shipping companies "have offered to change their pricing practices to settle an EU antitrust probe and stave off possible fines," according

Finance

Maersk Falls into the Red

Maersk Line posted a steep decline in profit last year to $1.3bn, well down from the 2014 result of $2.3bn and below its most recent forecast as freight rate declines

Maersk Line to Face Miserable 2016

In a video interview Group CEO of AP Møller-Maersk Nils S. Andersen comments on the 2015 full year result, low oil and freight rates, and the challenges and opportunities

Six New VLCCs Marks the Start of a Busy Delivery Year

2016 is off to a flying start when it comes to delivering brand new VLCCs from shipyards in South Korea and China to owners and investor across the globe, says a report BIMCO.

News

Maersk Line to Face Miserable 2016

In a video interview Group CEO of AP Møller-Maersk Nils S. Andersen comments on the 2015 full year result, low oil and freight rates, and the challenges and opportunities

Shipping Firms Poised to Settle EU Probe

Fifteen container liner shipping companies "have offered to change their pricing practices to settle an EU antitrust probe and stave off possible fines," according

US, India Consider Joint Patrols in South China Sea

The United States and India have held talks about conducting joint naval patrols that a U.S. defense official said could include the disputed South China Sea, a move that would likely anger Beijing,

Surveyors

BMT Provides Ferry Design for River Murray

BMT Design & Technology Pty Ltd (BMT), a subsidiary of BMT Group Ltd, has completed a design project for the South Australian Government’s Department of Planning, Transport and Infrastructure (DPTI).

DNV GL, RS Ink Cooperation Deal

DNV GL’s Maritime CEO Knut Ørbeck-Nilssen recently met with Konstantin Palnikov, Director General of the Russian Maritime Register of Shipping (RS), at the RS head office in St.

Drones Allow Surveys Without Scaffolds

DNV GL has completed several tests using drones to support hull surveys of vessels. Using drones to visually check the condition of remote structural components

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1473 sec (7 req/sec)