Du är här

2014-05-14

Polarcus Limited: First quarter 2014 report - Strong operational performance helps mitigate the soft market conditions

Polarcus Limited ("Polarcus" or the "Company") (OSE: PLCS) announces the
release of its first quarter 2014 financial statements.

Highlights in the first quarter 2014:

* Revenues of USD 121.4 million, EBITDA of USD 39.6 million and EBIT of USD
16.9 million
* Net cash flow from operations of USD 55.9 million
* Reduction in cost of sales and finance costs compared to same quarter last
year
* Backlog end April at USD 250 million
* Completion of the propulsion upgrade and increase from 10 to 12 streamers
on Polarcus Naila

The effects of the challenging market conditions at the end of 2013 spilled
over in to the start of 2014, as the Company recorded lower revenues during
the quarter compared to the same quarter the previous year. The yard stay to
carry out a propulsion and streamer upgrade on Polarcus Naila, and standby
between projects for Polarcus Alima, resulted in reduced utilization.

Multi-client revenue during the quarter was lower than expected as oil
companies have maintained a cautious approach following the opening of the UK
28th licensing round in January. Some of the anticipated multi-client sales
following the second tranche of the UK 27th licensing round announced at the
end of last year have also been delayed.

Despite the fall in revenue the Company has continued to deliver excellent
operational performance, with very low technical downtime and a reduction in
operating costs compared to Q1 2013. The decrease in net profit was
significantly less than the decrease in revenue as a result of the Company's
reduced cost due to reductions in both operating and financing costs compared
to the same quarter last year.

During the quarter the Company commenced a yard stay to upgrade the propulsion
system on Polarcus Naila. The vessel was also upgraded from 10 to 12
streamers and a mandatory classification was carried out during the yard
stay. The upgrades have significantly improved the revenue generating
potential as well as increasing the value of the vessel. The vessel left the
yard early May 2014 and transited straight to the North Sea for commencement
on an industry supported multi-client project.

Commenting on the results, Rolf Rønningen, CEO Polarcus, said: "The weak
market reported in the fourth quarter continued well into the first,
resulting in lower revenues across both Contract and Multi-Client business
lines. We took advantage of this period to upgrade Polarcus Naila, bringing
her into line with our high-performing A-Class fleet and thereby
significantly increasing her earnings potential going forward. We also
maintained our focused investment into our highly-regarded UK multi-client
library and secured industry prefunding for two exciting projects to commence
next quarter, including a major new program offshore Ireland. Throughout this
period the continued strong performance of our marine operations has provided
a rock solid foundation for our business whilst our broadband offering,
RightBand(TM), has gained good traction with clients, promising to present
new opportunities to grow our backlog."

Contacts

Rolf Rønningen, CEO Polarcus, +971 4 436 0800 / +971 50 459 6982

Tom Henrik Sundby, CFO Polarcus, +971 4 436 0800 / +971 50 708 6480

About Polarcus

Polarcus (OSE: PLCS) is a pure play marine geophysical company with a
pioneering environmental agenda, specializing in high-end towed streamer data
acquisition from Pole to Pole. Polarcus operates a fleet of high performance
3D seismic vessels incorporating an innovative design and advanced maritime
technologies for improved safety and efficiency. Polarcus offers contract
seismic surveys and multi-client projects worldwide and employs over 500
professionals. The Company's principal office is in Dubai, United Arab
Emirates. For more information, visit
www.polarcus.com

Disclaimer

The information included herein may contain forward-looking statements.
Forward-looking statements include all statements that are not historical
facts, including but not limited to statements expressing or implying the
Company's intent, belief or current expectations with respect to, among other
things, forecasts, estimates, and predictions. Such forward-looking
statements necessarily involve risks and uncertainties and are dependent on
assumptions, information, data or methods that may be incorrect or imprecise.
Actual results could differ materially from expectations expressed in the
forward-looking statements if one or more of the underlying assumptions or
expectations proves to be inaccurate or is unrealized. Some factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, developments in
the oil and gas industry, the demand for seismic services, the demand for
data from the Company's multi-client library, currency risks, political
risks, regulatory risks, and unexpected operational setbacks. For a further
description of other relevant risk factors we refer to our 2013 Annual
Report. The reservation is also made that inaccuracies or mistakes may occur
in the information given above concerning the current status of the Company
or its business. Any reliance on the information given above is at the risk
of the reader, and Polarcus disclaims any and all liability in this respect.

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)

First Quarter 2014 Presentation
http://hugin.info/151377/R/1785156/611987.pdf
First Quarter 2014 Report
http://hugin.info/151377/R/1785156/611986.pdf

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Polarcus Limited via Globenewswire

HUG#1785156

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.