2013-02-27 07:34:26 -
HIGHLIGHTS FOR THE FOURTH QUARTER 2012
* Revenues for the quarter were $34.9 million, an increase of 43% compared to
the comparable period in 2011 and down 23% relative to Q3 2012.
* Contract revenues for the period were $34.5 million, up 80% from Q4 2011 and
down 10% from Q3 2012.
* Multi-client revenues were $0.4 million, a decrease of 92% from $5.2 million
reported in Q4 2011 and a decrease of 94% from $7.1 million reported in Q3
* EBITDA was $6.8 million compared to negative $7.3 million for Q4 2011 and
$11.7 million for Q3 2012.
* EBIT for the quarter was $0.9 million compared to negative $14.8 million for
Q4 2011 and $4.2 million for Q3 2012.
* Completed the private placement of 11,000,000 new shares, total gross
proceeds of NOK 82.5 million ($ 14.7 million).
* The multi-streamer 3D vessel Geo Pacific was chartered at the end of the
* Vessel utilization for the period was 64%.
YEAR END 2012 HIGHLIGHTS
* Revenues for 2012 were $163.3 million, an increase of 100% compared to 2011.
* Contract revenues for 2012 were $141.7 million, up 97% from 2011.
* Multi-client revenues were $21.7 million, an increase of 121% from $9.8
million reported in 2011.
* EBITDA was $38.4 million compared to negative $9.4 million for 2011.
* EBIT for 2012 was $4.2 million compared to negative $92.2 million for the
* Vessel utilization for 2012 was 75%.
The fourth quarter was slightly weaker than the third quarter, resulting in
lower utilization; however, day rates remained firm. The niche (shallow and
specialist) 3D market was robust and has developed into a core part of the
company strategy. The addition of the Geo Pacific at the end of the quarter
will further enhance SeaBird's position in this segment. In the 2D market,
demand was also buoyant during the quarter. However, the normal seasonal
repositioning effects in the industry impacted vessel capacity coming from the
Oil and gas company demand constituted a significant part of fourth quarter
revenues and is expected to continue into 2013. Demand from oil and gas
companies was to a large extent directed towards our 3D segment. Multi-client
contract work also remained healthy and continued the growth trend which
commenced earlier in the year.
Multi-client sales during the quarter were substantially lower than prior
periods. The limited size of the multi-client portfolio will result in
fluctuations in sales and will be difficult to predict. The company is
committed to increase its investment in multi-client surveys to better balance
supply and demand in the contract market as well as to capitalize on attractive
investment opportunities. The company has continued to develop its multi-client
strategy and announced a major new survey in the Barents Sea to be completed in
the 2013 season. The marketing of the 12,000 km Snøspurv 2D high resolution
multi-client survey covering the Bjarmeland Platform was commenced in
cooperation with Searcher Seismic.
During the quarter we saw good demand in the source market. One vessel was used
in the source market in the fourth quarter and the company signed two new
contracts for 2013. Contract durations still remain relatively short in this
market segment. Day rates have been above expectations.
The company's backlog is in line with recent quarters. There is a mix of long-
term and short-term contracts and the company will look to maintain a balance to
the extent possible.
Vessel utilization for the fourth quarter was 64%. The lower utilization figure
for the fourth quarter is primarily attributable to seasonal repositioning and a
late survey start due to delayed permits. In addition, we had one dry docking
during the period. Utilization figures are excluding the laid-up Kondor
From an operational viewpoint, technical downtime was less than 5% during the
quarter. Technical downtime continued to be below industry norms, despite a
number of vessels operating within challenging environments.
SeaBird's continued focus on health, safety, security, environment and quality
(HSSEQ) remains at the forefront of our operation. The company's lost time
injury frequency (LTIF) rate was zero for 2012 and confirms the high level of
HSSEQ culture and system implementation within the company.
At the end of the fourth quarter, the company chartered the fully-equipped 3D
vessel Geo Pacific. The charter is for a three-year period with four one-year
extensions. The company also has purchase options on the vessel in years three
and, to the extent the lease is extended, year four. The Geo Pacific will be
SeaBird's second 3D vessel in addition to the Voyager Explorer. The vessel will
be targeting the 6-8 streamer market. The charter of this vessel is an
important supplement to SeaBird's expansion plans to further develop the
company's service offering. The vessel is currently undergoing an upgrade as
well as class renewal and will be available at the end of Q1 2013.
In the fourth quarter there was a significant change in sales among our
operating regions - Europe, Africa and Middle East (EAME), North and South
America (NSA) and Asia Pacific (APAC). The ending of the North Sea season
reduced EAME revenues compared to the third quarter while revenues in the APAC
region increased as anticipated.
Sales in EAME of $5.2 million accounted for 15% of total revenues. Compared to
prior periods there was a relatively low level of activity within the region
during the quarter, corresponding to the end of the North Sea season and the
delay of a long-offset 2D survey off the coast of South Africa. The South
African survey commenced late in Q4 2012 and will keep the vessel active for the
majority of Q1 2013. The remaining revenues were primarily derived from contract
work in West Africa. We see growing interest in the EAME region.
NSA sales of $10.9 million represented 31% of total revenues. The majority of
revenues earned in this region were derived from two long-term 2D contracts in
South America. We expect to see a significant increase in the level of activity
in this region in 2013.
Sales in APAC of $18.8 million accounted for 54% of total revenues. The
majority of the revenues are attributable to two complex shallow water surveys
completed in South East Asia. Both surveys were for oil companies, one 2D
survey and one 3D survey. We expect to maintain the current vessel presence in
the region over the foreseeable future.
Following the equity offering completed in November 2012, the company issued
1,500,000 new shares at a subscription price of NOK 7.50 per share. Gross
proceeds from this transaction were NOK 11.3 million ($2.0 million). The
transaction closed in February 2013 and was targeted towards shareholders who
did not have the opportunity to participate in the private placement of 2012.
Market demand remained firm in the fourth quarter and continued the trend we
have seen over the past several months. We expect the upturn to continue
through 2013 and we see demand staying strong in all of our operating regions.
Day rates have been solid through the fourth quarter and we see evidence that
the markets are testing higher levels.
The source market demand is continuing to show positive developments. Day rates
are attractive albeit contract terms are still relatively short. To the extent
these trends continue, the company may rig Kondor Explorer to capitalize on this
All figures below relate to continuing operations unless otherwise stated. For
discontinued operations, see note 1.
The company reports a loss of $5.4 million for the fourth quarter 2012 (loss of
$14.8 million same period in 2011).
Revenues were $34.9 million in Q4 2012 ($24.4 million). The increased revenues
are mainly due to fleet composition.
Cost of sales was $24.4 million in Q4 2012 ($24.0 million). The increase is
primarily due to fleet composition.
SG&A was $4.1 million in Q4 2012, down from $8.4 million in Q4 2011. The
decrease is principally due to the $4.0 million write-off of bad debts performed
in Q4 2011 and the organizational restructure and cost savings initiative
implemented during 2012.
EBITDA was $6.8 million in Q4 2012 (negative $7.3 million).
Depreciation and amortization were $5.9 million in Q4 2012 ($7.4 million). The
decrease is predominantly due to lower multi-client sales amortization for the
Interest expense was $3.2 million in Q4 2012 ($4.7 million). The decrease is a
result of the financial restructuring completed in 2011.
Other financial items, net expense, of negative $0.4 million in Q4 2012 (gain of
$6.2 million). The change is mainly due to the gain on extinguishment of debt
recognized in Q4 2011.
Income tax expense was $2.7 million in Q4 2012 (expense of $1.5 million). The
increase is mainly due to a tax review resulting in an additional tax accrual of
$1.8 million for taxes in Norway for the years 2011 and 2012.
Capital expenditures were $4.2 million in Q4 2012 ($3.9 million). The majority
of the capital cost incurred during Q4 2012 relates to the docking of Osprey
Explorer and purchasing of seismic equipment across the fleet.
Net loss from discontinued operations was $0.6 million for Q4 2012 (gain of
$47.9 million). Discontinued operations represent the remaining contractual
obligations of the Ocean Bottom Node (OBN) business which was divested in Q4
Liquidity and financing
Cash and cash equivalents at the end of the period were 14.7 million ($13.3
million), of which $0.7 million was restricted in connection with bank
guarantees, deposits and the bond service account. Net cash from operating
activities was negative $1.3 million in Q4 2012 (negative $43.1 million).
Following the financial restructuring completed in December 2011, the company
has one bond loan, one convertible loan and the Hawk Explorer finance lease.
* The 6% secured bond loan has a face value of $87.9 million and is recognized
in the books at amortized cost of $76.4 million per Q4 2012. The bond loan
matures 19 December 2015 and has principal amortization due in semi-annual
increments of $2.0 million starting 19 December 2012. Interest paid during
the quarter was $2.7 million (Nil).
* The 1% unsecured convertible loan with Perestroika has a face value of $14.9
million and is recognized in the books at amortized cost of $12.6 million
per Q4 2012. The convertible loan matures 30 September 2014 and has no
principal amortization. No interest was paid during Q4 2012 in relation to
the convertible loan.
* The lease of Hawk Explorer is recognized in the books as a finance lease at
$13.2 million per Q4 2012. Installments of $0.9 million against the Hawk
lease principal and $0.4 million against the interest portion were paid
during Q4 2012 ($1.1 million and $0.6 million in 2011, respectively).
Net interest-bearing debt was $87.4 million at the end of Q4 2012 ($107.7
Accrued interest for Q4 2012 was $0.1 million (Nil).
The private placement completed on 28 November 2012 and the subsequent repair
issue completed on 13 February 2013 generated gross proceeds of NOK 82.5 million
($14.7 million) and NOK 11.3 million ($2.0 million) respectively.
The company was in compliance with all covenants as of 31 December 2012.
The Board of Directors and
Chief Executive Officer
SeaBird Exploration Plc
26 February 2013
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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Source: SeaBird Exploration plc via Thomson Reuters ONE