Polarcus Limited has released its second quarter 2014 financial statements.
- Revenue up 13% sequentially and 5% year-on-year to US$ 137.6 million.
- EBITDA of US$ 49.9 million and EBIT of US$ 23.8 million.
- Net profit increased to US$ 9.2 million, from US$ 6.3 million in Q2 2013.
- Net cash flow from operations of US$ 45.6 million.
- Polarcus Naila vessel back in production after a successful upgrade.
- Financing costs reduced by 30% year-on-year 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 utilisation and operational efficiency.
A continued competitive market environment led the company to reduce its full year EBITDA guidance to approximately US$ 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.
Polarcus continued to improve its financial position by extending its debt maturity profile and reducing its financing costs through issuing a NOK 350 million bond.
Commenting on the results, Rolf Rønningen, CEO, 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."
Adapted from press release by Katie Woodward
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