Polarcus has announced its fourth quarter results for 2010, citing robust growth in the seismic sector for revenues of over $56 million.Â
With three vessels in operation in the fourth quarter, margins improved further compared to previous quarters. Economy of scale, solid operational performance and good utilization contributed to the positive development. New financing of $200 million was also successfully secured to enable the reacquisition and completion of Polarcus Alima, scheduled for delivery in March 2011.
Furthermore, Polarcus signed shipbuilding contracts for two new ultramodern 12-14 streamers seismic vessels for delivery in the first half of 2012. Following these latest newbuild orders, the Polarcus seismic fleet will comprise seven high-end 3D vessels.
Rolf Ronningen, CEO Polarcus, commented: “We have continued to see robust growth in the fourth quarter, both of the high-end 3D seismic market in general, as well as our own internal development. This is epitomized by the successful deployment and execution of a significant 2,000 sq. km 3D survey for Rosneft, acquired by Polarcus Asima deploying the company’s first-ever 12 streamer spread. This milestone achievement was furthermore accomplished after her direct mobilisation from the shipyard to the Black Sea, enabling her to bring immediate value to the fleet and to the company’s financial performance”.
Highlights in the fourth quarter 201o included revenues of US$56.3 million and EBITDA of $21.2 million, with three vessels in operation.
The company has said it has built up a robust backlog growth through the quarter as high-end operational capabilities were proven, with six separate Letters of Intent received for 3D contract services, including a strategically important 4D seismic acquisition ‘monitor’ survey and undershoot for Eni, offshore Nigeria.
The company successfully completed new financing of $200 million to enable the reacquisition and completion of the 12 streamer 3D seismic vessel Polarcus Alima, scheduled for delivery from the shipyard this quarter. The new financing comprised a $65 million equity issue and an $80 million 5 year bond issue, both of which were significantly oversubscribed, and a $55 million loan facility.
In addition, the company signed shipbuilding contracts for two additional high-end 12-14 streamer Ice Class 3D seismic vessels from Ulstein Verft AS of Norway, on highly favorable terms. The Company successfully secured $65 million through a related equity issue to partly finance the newbuilds, scheduled for delivery in the first half of 2012.
The fourth quarter statement also outlined an expanded company footprint in Asia-Pacific with the signing of an exclusive multi-client cooperation agreement with Searcher Seismic of Australia, to jointly develop and license marine 3D multi-client acquisition projects across Australia and Indonesia. The agreement complements the existing cooperation agreement with GeoPartners covering northwest Europe and Africa. Simultaneously opened a new regional marketing office in Singapore specifically to develop new business opportunities within the Asia-Pacific region.
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