Dolphin Geophysical sees market share doublingDolphin Geophysical sees market share doubling

Set up late in 2010 by ex-personnel from Wavefield and CGG Veritas, the young firm has already delivered a strong performance to what Atle Jacobsen describes as “happy shareholders”. High oil prices and a drive to research new energy-bearing offshore regions are likely to yield revenues in excess of $300m this year, he says.

The company currently operates a four-ship fleet but will be taking delivery of four new high-end seismic vessels, chartered from Bergen-based GC Rieber Shipping, between now and 2015. The new ships are likely to be fixed at rates at least 50% higher than two years ago, at well over $300,000 a day all-in.

Jacobsen explains that high energy prices and consolidation within the sector are driving a buoyant seismic research market. There is a high barrier to entry and the business is dominated by a handful of major players. He expects that Dophin’s 5% market share could double by 2015. Developed offshore regions, including the North Sea, merit more attention, he says, whilst hitherto unexplored areas including waters off Africa, India and the Barents Sea have become a focus for oil explorers.    

Research analyst ABG Sundal Collier has a firm “Buy” on the shares which give the company a current market capitalisation of $437m.