ENP Newswire -
Release date- 16052014 -
Highlights in the first quarter 2014:
Net cash flow from operations of
Reduction in cost of sales and finance costs compared to same quarter last year
Backlog end April at
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 yardstay 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
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
Commenting on the results,
We also maintained our focused investment into our highly-regarded
Tel: +971 4 436 0800
Tel: +971 4 436 0800
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
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