10 November 2017, Limassol, Cyprus
The third quarter of 2017 was challenging with continued weak seismic market demand. SeaBird recorded a 22.1% active vessel utilization during the third quarter of 2017 compared to 18.4% in Q2. Starting in October, the company expects to have two vessels in operation for the remainder of the year. Contracting lead-time remains long with substantial competition and high market uncertainty. The company announced the completion of the proposed financial restructuring during the quarter, reducing debt and lease obligations by approximately $37.5 million. The remaining financial debt will be $5.7 million in nominal terms, with no significant debt principal repayments until 2020 and interest and charter hire with a payment-in-kind option. During the quarter, the company announced a private placement equity issue raising NOK 100 million in gross proceeds. The equity issue was approved at the company's general meeting 2 October 2017. During the third quarter, the company implemented a further reduction in onshore headcount and administrative costs. The company expects the SG&A costs to continue to decline in the fourth quarter.
2017 Summary observations for the third quarter
- Revenues for the quarter were $2.7 million, a decrease of 87% compared to Q3 2016 and up 0.2% relative to Q2 2017.
- Contract revenues for the period were $2.7 million, down 87% from Q3 2016 and up 11% relative to Q2 2017.
- Multi-client revenues were nil, down from $0.3 million reported in Q3 2016 and a decrease from $0.3 million reported in Q2 2017.
- Reported EBITDA was negative $14.4 million compared to positive $10.7 million for Q3 2016 and negative $6.3 million for Q2 2017. EBITDA adjusted for non-recurring items of negative $5.0 million.
- Reported EBIT for the quarter was negative $25.6 million compared to negative $3.0 million for Q3 2016 and negative$9.7 million for Q2 2017. Adjusted EBIT of negative $8.2 million.
- Active vessel utilization for the period was 22.1%. Contract surveys during the third quarter represented 22.1% of vessel capacity compared to 78.6% during the third quarter 2016. Multi-client surveys accounted for 0% of vessel capacity compared to 5.4% in the third quarter 2016.
- In the third quarter, the company announced a new 3D contract award in West-Africa with a duration of two months and entered into option agreement with TGS to provide up to 600 vessel days of seismic services.
- Two vessels on contract towards at the end of the quarter and the company expects two vessels active in most of fourth quarter.
- Financial restructuring completed during the quarter; reducing debt and future charter hire by $37.5 million and issued new shares valued at $30.6 million.
- Announced private placement equity issue raising NOK 100 million in gross proceeds. Closing of the transaction was effectuated subsequent to quarter end.
SeaBird is a global provider of marine acquisition for 2D/3D and 4D seismic data, and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow/deep water 2D/3D and 4D market. Main focus for the company is proprietary seismic surveys (contract seismic). Main success criteria for the company are an unrelenting focus on Quality, Health, Safety and Environment (QHSE), combined with efficient collection of high quality seismic data. All statements in this press release other than statements of historical fact are forward-looking statements and are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include SeaBird`s reliance on a cyclical industry and the utilization of the company's vessels. Actual results may differ substantially from those expected or projected in the forward-looking statements.
The third quarter 2017 presentation will be transmitted live at
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
For further queries contact:
CEO SeaBird Exploration
Phone: +47 22402705
CFO SeaBird Exploration
Phone: +47 22402717