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Polarcus Limited 4Q results

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Oilfield Technology,

Highlights in the fourth quarter 2015:

  • Revenues of US$72.5 million, down 22% from Q4 2014.
  • Gross cost of sales of US$54.3 million, down 26% from Q4 2014.
  • Cash from operations of US$28.6 million, up 263% from Q4 2014.
  • Multi-Client prefunding ratio of 104%.
  • Non-cash impairment of US$242 million relating to carrying values of vessels, equipment and intangibles.
  • Completion of financial restructuring post quarter end.
  • Backlog US$210 million.

  • Rodd Starr, Chief Executive Officer said:

    "The fourth quarter was one in which we saw the culmination of significant efforts across the organisation to successfully execute our 2015 Agenda. We increased market share, announcing nine awards since the end of the last quarter, maintaining an industry-leading backlog. We delivered significant cost reductions, with a 26% decrease in gross cost of sales compared to the same quarter the previous year, with further future cost savings expected following the organisational changes announced post quarter end. Finally, we restructured the balance sheet, which was formally completed in the first quarter 2016, giving us a potential debt reduction of US$280 million. In addition, we reduce debt service payments by US$140 million over the next two years alone.

    Despite a reduction in revenues, we generated cash from operations of US$28.6 million in the quarter, significantly higher than in the same quarter the previous year. Our investment in Multi-Client remained disciplined, and we recorded a high prefunding level of 104% in the quarter.

    The company begins 2016 in a stronger position than ever before; with a higher market share, a lower cost base and a lower debt burden. Although the market outlook remains challenging during the year ahead, we remain confident that we are well positioned for this prolonged downturn."

    Adapted from a press release by Louise Mulhall

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