SeaBird Exploration Plc: First Quarter Report 2013
(Thomson Reuters ONE) -
2013 SUMMARY OBSERVATIONS FOR THE FIRST QUARTER
* Revenues for the quarter were $48.6 million, an increase of 42% compared to
the comparable period in 2012 and up 39% relative to Q4 2012.
* Contract revenues for the period were $48.5 million, up 92% from Q1 2012 and
up 41% from Q4 2012.
* Multi-client revenues were $0.1 million, a decrease of 99% from $9.1 million
reported in Q1 2012 and a decrease of 75% from $0.4 million reported in Q4
2012.
* EBITDA was $11.1 million compared to $2.9 million for Q1 2012 and $6.8
million for Q4 2012.
* EBITDA adjusted for operating expenses relating to the Geo Pacific would
have been approximately $16.0 million.
* EBIT for the quarter was $5.1 million compared to negative $8.7 million for
Q1 2012 and $0.9 million for Q4 2012.
* The company completed the private placement repair issue of 1,500,000 new
shares; total gross proceeds of NOK 11.3 million ($2.0 million).
* The multi-streamer 3D vessel Geo Pacific was successfully upgraded and
performed sea trials during the quarter. SeaBird announced Geo Pacific's
first contract in the Caribbean, which will commence in Q2 2013.
* Available vessel utilization for the period was 88%.
Operational review
Continued strength throughout the operation resulted in a solid first quarter
for SeaBird, that included substantial start-up costs associated with the
chartering of the Geo Pacific and that normally is affected by seasonal
weakness. Day rates remained firm and utilization was robust. Demand from
seismic companies was strong but we also continue to see solid demand from oil
companies.
During the quarter, the Geo Pacific was dry-docked and upgraded for increased
power output and modified to reduce drag. The vessel performed successful sea
trials with increased speed in preparation of the announced contract in the
Caribbean commencing in Q2 2013. The EBITDA contribution from the Geo Pacific
was negative $4.9 million for the quarter as the vessel was being prepared for
its initial contract. We have seen healthy market interest for the vessel to
date and are looking at a number of follow-on contract options in Central
America, North-West Europe and Africa after the initial contract in the
Caribbean is completed. Demand in the niche 3D seismic market has remained firm
and the Voyager Explorer together with the Geo Pacific will continue to service
this market.
Multi-client sales were minimal during the quarter. The limited size of the
company's multi-client portfolio is likely to result in significant fluctuation
in multi-client sales going forward. The company is committed to selectively
increase its investment in multi-client surveys to better balance supply and
demand in the contract market as well as to capitalize on multi-client
investment opportunities with attractive risk reward characteristics. During the
quarter, SeaBird recommenced a 2D multi-client survey covering approximately
3,000 km offshore Barbados in co-operation with MultiClient Geophysical ASA,
which is the final part of a survey started in 2012. SeaBird also recently
announced a new 2D multi-client project offshore Namibia in partnership with
GeoPartners Ltd. This acquisition program is approximately 4,700 km and will
commence in Q2 2013. Additionally, SeaBird is in partner discussions on several
new multi-client projects.
During the quarter, we saw continued demand in the source market. The company is
currently bidding for several new short-term contracts for 2013 and expects
interest in this segment to increase going forward. The source market continues
to be a key focus for SeaBird and a natural extension of the company's core
business. In addition to being a natural fit with SeaBird's fleet, the source
market also improves the company's ability to further optimize crew, vessel and
seismic equipment utilization.
First quarter vessel utilization for the available fleet was 88%. This excludes
the Geo Pacific which was being upgraded during the period as well as the Kondor
Explorer which is in dry dock. The reported utilization is a significant
increase compared to the same period in 2012 as well as the prior period. During
the first quarter, the company also completed two dockings for engine overhauls.
From an operational viewpoint, technical downtime was less than 4% during the
quarter. This is below industry norms and in spite of a number of vessels
operating within challenging environments. The 3D campaigns in Australia and New
Zealand were particularly successful in terms of both client satisfaction and a
technical downtime of less than 2%.
The organization has been further strengthened in Q1 2013 with the addition of
experienced 3D sales, operations and offshore employees, supporting the
expansion of SeaBird's fleet and position in the niche 3D market.
SeaBird delivered another quarter of solid health, safety, security, environment
and quality (HSSEQ) results. The company's lost time injury frequency (LTIF)
rate was zero for Q1 2013 and confirms the high level of HSSEQ culture and
system implementation within the company. Our continued focus on improving best
practices not only resulted in industry-leading safety results but also
delivered best-in-class performance. Reported client satisfaction has been
strong, with notable commendations from major customers. During the quarter,
SeaBird commenced an effort to analyze past performance with an intention to
further improve the HSSEQ processes and defining 2013 HSSEQ targets.
Regional overview
In the first quarter, geographic revenues were strong across all our operating
regions - Europe, Africa and Middle East (EAME), North and South America (NSA)
and Asia Pacific (APAC). The North Sea seasonal weakness kept EAME revenues at a
moderate level, while revenues in the APAC region increased further compared
with Q4 2012 as a result of attractive day rates and high utilization.
Sales in EAME of $13.5 million accounted for 28% of total revenues. The level of
revenues was higher than Q4 2012, but still lower compared to prior periods as a
result of the North Sea seasonal effect. During the quarter, SeaBird completed a
long-offset 2D survey off the coast of South Africa. Another South African
survey has been extended and will keep the company active in the area for the
main part of Q2 2013. The company also commenced a 2D survey in West Africa.
NSA sales of $12.1 million represented 25% of total revenues. The majority of
revenues earned in this region were derived from two long-term 2D contracts in
South America. During the quarter, the company negotiated an early termination
of the current contract on the Harrier Explorer and subsequently contracted the
vessel to a multi-client survey in the region.
Sales in APAC of $23.0 million accounted for 47% of total revenues. A
significant portion of these revenues are attributable to SeaBird's 3D multi-
contract campaign for several New Zealand and Australian oil companies.
Moreover, we continued with a large 2D survey in Australia which we commenced in
2012. Additionally, we performed a short-term source vessel contract in the
region during the period.
Outlook
Market demand was strong in the first quarter and we continue to see solid
activity in both the 2D and niche 3D seismic markets. We expect the current
market environment to remain through 2013 and we see demand staying strong in
all of our operating regions. The client mix of oil companies together with
seismic companies is expected to continue. SeaBird's HSSEQ accreditations and
systems ensure that the company is qualified to work for all industry
participants.
Day rates have remained strong through the first quarter and we see no signs of
this abating. We would expect rates to stay at current levels and possibly
increase to the extent vessel availability remains constrained.
Backlog is expected to stay relatively stable. However, given the short-term
nature of many of our contracts, we may see fluctuations in backlog from time to
time. Moreover, while we complete work under existing long-term contracts,
backlog under these agreements will be reducing, but may subsequently be
replaced with new agreements at the end of the contract period.
We expect to commence additional work in the multi-client space and we will
generally be doing this in cooperation with one or more partners.
The source market demand is continuing to show positive developments. Day rates
are attractive albeit contract terms are still relatively short.
FINANCIAL REVIEW
Financial comparison
All figures below relate to continuing operations unless otherwise stated. For
discontinued operations, see note 1.
The company reports a profit of $1.5 million for the first quarter 2013 (loss of
$12.5 million same period in 2012).
Revenues were $48.6 million in Q1 2013 ($34.3 million). The increased revenues
are mainly due to increased contract day rates and higher fleet utilization,
offset by lower multi-client revenues.
Cost of sales was $33.1 million in Q1 2013 ($27.2 million). The increase is
primarily due to the chartering of the Geo Pacific and the higher operating
costs associated with surveys in the Australasian region relative to other
regions. The cost increase was offset by MCG multi-client prefunding of the
Barbados survey ($1.2 million).
SG&A was $4.6 million in Q1 2013, down from $4.9 million in Q1 2012. The
decrease is principally due to the organizational restructure and cost savings
initiative implemented during 2012. As part of an ongoing tax review, the
company has evaluated it tax domicile and structure. During the quarter, $0.3
million of consultancy costs related to this exercise have been recognized as
selling, general and administrative expenses.
EBITDA was $11.1 million in Q1 2013 ($2.9 million).
Depreciation and amortization were $6.0 million in Q1 2013 ($11.6 million). The
decrease is predominantly due to lower multi-client sales amortization for the
period.
Interest expense was $3.0 million in Q1 2013 ($3.1 million).
Other financial items, net expense, of negative $0.1 million in Q1 2013 (loss of
$0.4 million). The change is mainly due to currency fluctuations.
Income tax expense was $0.6 million in Q1 2013 (expense of $0.3 million). The
increase is mainly due to increased profits for subsidiaries required to file
within the Norwegian tax jurisdiction.
Capital expenditures were $6.8 million in Q1 2013 ($1.3 million). Major capital
cost items for the quarter included the docking and upgrade of the Geo Pacific,
engine overhauls for the Voyager Explorer and Hawk Explorer and purchasing of
seismic equipment across the fleet.
Multi-client investment was $0.2 million for the quarter ($3.0 million), which
is related to the 2D Barbados multi-client survey.
Net loss from discontinued operations was $0.5 million for Q1 2013 (gain of $5.3
million). Discontinued operations represent the remaining contractual
obligations of the ocean bottom node (OBN) business which was divested in Q4
2011.
Liquidity and financing
Cash and cash equivalents at the end of the period were $16.5 million ($13.7
million), of which $2.8 million was restricted in connection with bank
guarantees, deposits and the bond service account. Net cash from operating
activities was positive $7.9 million in Q1 2013 (positive $5.5 million).
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.
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 $77.2 million per Q1 2013. The bond loan
matures 19 December 2015 and has principal amortization due in semi-annual
increments of $2.0 million starting 19 December 2012.
* 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 $12.9 million
per Q1 2013. The convertible loan matures 30 September 2014 and has no
principal amortization. Interest on the convertible loan is paid annually.
No interest was paid during Q1 2013 in relation to the convertible loan.
* The lease of Hawk Explorer is recognized in the books as a finance lease at
$12.2 million per Q1 2013. Installments of $0.9 million against the Hawk
lease principal and $0.4 million against the interest portion were paid
during Q1 2013 ($0.8 million and $0.4 million in 2012, respectively).
Net interest-bearing debt was $85.9 million at the end of Q1 2013 ($90.9
million).
Accrued interest for Q1 2013 was $1.4 million (Nil).
The company was in compliance with all covenants as of 31 March 2013.
The Board of Directors and Chief Executive Officer
SeaBird Exploration Plc
2 May 2013
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q1-13 Presentation:
http://hugin.info/136336/R/1698758/560166.pdf
Q1-13 Report:
http://hugin.info/136336/R/1698758/560164.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SeaBird Exploration plc via Thomson Reuters ONE
[HUG#1698758]
Unternehmensinformation / Kurzprofil:
Datum: 03.05.2013 - 07:31 Uhr
Sprache: Deutsch
News-ID 255844
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