Polarcus Fourth Quarter and Preliminary Full Year 2019 Results

Strong increase in full year earnings

Note: All references in to “segment” and “segment reporting” are adjusted for IFRS 15 effects and non-recurring items. See Note 3 in the accompanying interim financial statements.

Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) releases its fourth quarter and preliminary full year 2019 results.

Polarcus CEO, Duncan Eley, commented:

“Polarcus delivered a substantial increase in earnings during 2019 with EBITDA more than doubling year-on-year and strong growth in operating cash flows. This result was driven by increased margins from improved pricing and continued focus on operational excellence and cost management. 

We maintain a positive outlook for 2020, despite some recent fluctuations in global sentiment observed. Tender levels, multi-client activity and pricing all continue to develop positively.

With a young, high-performing fleet and industry-leading offerings including our Explore Green environmental agenda and Cirrus digital data transfer and processing capabilities, I am confident Polarcus is well-positioned to maximize value from the marine seismic market going forward.”

Q4 2019 HEADLINES

• Segment revenues of USD 55.3 million, compared to USD 58.4 million in Q4 2018
• Segment EBITDA of USD 7.6 million, up from USD 2.5 million in Q4 2018
• Net cash flows from operating activities of USD 21.9 million, up from USD 11.5 million in Q4 2018
• Vessel utilization of 71%, compared to 96% in Q4 2018
• Seven new contracts secured since the end of Q3 2019

FULL YEAR 2019 HEADLINES

• Segment revenues of USD 290.6 million, up from USD 202.2 million in 2018
• Segment EBITDA of USD 63.4 million, up from USD 29.1 million in 2018
• Segment EBIT of USD 28.0 million, up from negative USD 19.8 million in 2018
• Net cash flows from operating activities of USD 60.9 million, up from USD 11.3 million in 2018
• Total cash balance of USD 36.5 million, up from USD 31.2 million at end of 2018
• Vessel utilization of 79% with significantly higher contract day rates achieved compared to 2018
• Strong operational performance and excellent safety record maintained 
• Backlog at USD 240 million; the highest level since 2014

2019 financial results reflect a significantly improved seismic market resulting in substantially higher realized day rates year-on-year.  Segment revenues of USD 290.6 million increased 44% compared to USD 202.2 million in 2018, despite a lower fleet utilization of 79% compared to 87% in 2018.