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Polarcus bounces back with a $19.8m Q3 profit

Polarcus bounces back with a $19.8m Q3 profit
Seismic exploration company Polarcus has recorded third quarter net profit of $19.8m, but stayed $84.9m in the red for the first nine months of the year.

The third quarter profit reversed its $8.9m net loss in the same period in 2014. 

Revenues rose to $132.2m, an increase over the $114.3m reported in Q3 2014 and an increase of 44% over the $91.7m booked in Q2 2015. Vessel utilisation was 93%, while cash from operations was $55.5m, up 74% from Q2.

During the quarter, Polarcus closed the $27.5m sale of its Northwest Europe and West Africa Library to TGS-NOPEC Geophysical Company.

The positive Q3 result helped lessen its nine-month net loss to $84.9m, this compared with a profit of $1.3m in the same period in 2014.

"Polarcus delivered record results during Q3 in what is shaping up to be the most severe industry downturn in recent history,” said ceo Rod Starr. “The actions we took early in the year with a clear focus on business fundamentals has enabled us to improve the financial performance in this difficult market. We have been able to achieve the industry's strongest vessel utilisation and secure premium rates where the company's value differentiators are being recognised by clients.

“Our 2015 agenda continues to drive increased market share and also deliver significant cost reductions to improve profitability,” he said.

“Looking ahead, the market remains uncertain on account of continued low seismic spending by oil companies. Tender activity remains volatile and market rates competitively low. We are well positioned, however, heading into the winter season with 75% booked capacity for the next six months, and we remain confident of our competitiveness in this downturn."