SeaBird Exploration Plc

Fourth quarter report 2014

 

2014 SUMMARY OBSERVATIONS FOR THE FOURTH QUARTER

• Revenues for the quarter were $28.1 million, a decrease of 27% compared to Q4 2013 and up 24% relative to Q3 2014.
• Contract revenues for the period were $23.5 million, down 30% from Q4 2013 and an increase of 44% from Q3 2014.

Multi-client revenues were $4.6 million, down 11% from $5.1 million reported in Q4 2013 and a decrease of 28% from $6.3 million reported in Q3 2014.

EBITDA was negative $28.5 million compared to positive $3.9 million for Q4 2013 and negative $2.1 million for Q3 2014.

EBIT for the quarter was negative $68.6 million compared to negative $4.6 million for Q4 2013 and negative $11.1 million for Q3 2014.

Vessel utilization for the period was 57%. Contract surveys during the fourth quarter represented 52% of vessel capacity compared to 35% during the third quarter 2014. Multi-client surveys accounted for 5% of vessel capacity compared to 30% in the prior period.

Non-recurring costs in the period of $21.0 million relating to lay-up of 3D vessels, bad debt provisions, loss on insurance settlements, financial restructuring and office relocation costs.

Impairments were $31.5 million during the quarter.

 

Operational review

Fourth quarter revenues increased from the prior period due to higher contract utilization. However, the overall seismic market continued to be negatively impacted by the weakness in oil prices. Although all operating sectors were affected by the softness in the oil services markets, the 2D and source segments have been less impacted than the niche 3D market.

Vessel utilization was 57%, down from 65% in the third quarter. Technical downtime for the fleet was 6%, up from 3% for Q3. The Geo Pacific experienced significant technical challenges on its 3D survey in West Africa and this had a substantial impact on overall downtime for the period.

Contract surveys represented 52% of vessel capacity compared to 35% for the third quarter of 2014. Aquila Explorer completed one 2D multi-client survey in the Philippines and thereafter mobilized for a new 2D contract survey in Australasia. Osprey Explorer continued working on the 2D survey in the Gulf of Mexico throughout the quarter. Harrier Explorer completed a 2D multi-client survey off-shore Ireland and performed a contract survey in Africa. Munin Explorer continued its long-term source contract and was mobilized to South America towards the end of the quarter. Hawk Explorer and Northern Explorer remained off hire awaiting start-up of new 2D contracts. Geo Pacific was employed on its 3D survey in West Africa during the quarter.