Seabird Exploration Group Third Quarter 2009
(Thomson Reuters ONE) - HIGHLIGHTS THIRD QUARTER 2009 * A full scale test of our deep water Ocean Bottom Node ("OBN") survey was completed mid July by retrieving 42 Nodes on a location at 1700 - 2200 m water depth close to the Atlantis field. Multi-client data from this survey has been sold to several major oil companies. * The OBN survey for BP Exploration & Production Inc. was successfully completed by the Hugin Explorer and Kondor Explorer on the Green Canyon Atlantis field in Gulf of Mexico from end of July to 21 September deploying 500 nodes in 1300-2300 m water depth. * An additionally requested OBN test-survey was completed for BP Exploration & Production Inc end of September. * Following an overall low utilization of 55% during Q3, SeaBird announced several new 2D contracts and all vessels employed on improved contract terms during October. Osprey Explorer is being mobilized from cold stack as from mid October 2009.KEY FINANCIAL PERFORMANCE FIGURESFor comparisons of income and expenses between Q3 2009 and Q3 2008,it must be noted that the financing and level of operating activityfor the SeaBird Group has changed considerably. The Ocean Bottom Nodesurvey with the Hugin Explorer commenced in September 2008, and therevenue day rates on the 2D seismic and source vessels have beenreduced significantly since 2008. In addition, the utilization ofthe 2D/Source vessels was down from about 85% in Q3 2008 to 51% in Q32009 following long periods of idle and lay-up of vessels.Consolidated revenues for the SeaBird Group ("SeaBird") are reducedto USD 28.9 million in Q3 2009 from USD 45.1 million in Q2 2009, inline with reduced average utilization for all vessels to 55% in Q32009 compared to 80% in Q2 2009.Earnings before interest, taxes, depreciation and amortization("EBITDA") were a negative USD 1.2 million in Q3 2009 compared to USD8.9 million in Q2 2009, due to reduced revenues, partly offset by areduction in operating expenses to USD 25.2 million in Q3 2009 fromUSD 29.2 million in Q2 2009. This reduction was mainly due to reducedmanning, maintenance and fuel costs for idle vessels.Selling, general and administrative ("SG&A") expenses were alsoreduced to USD 5.3 million from USD 7.1 million in Q2 2009, however,Q2 2009 includes USD 1.5 million write-off of bad debt.Depreciation is now down to the same levels as previous quarters, atUSD 10.8 million subsequent to a write-off of about USD 2 million ofseismic equipment sold in Q2 2009.Interest expense is reduced to USD 2.9 million in Q3 2009 from USD3.7 million in Q2 2009, mainly due to reduced interest levels on theNOK bond debt and USD bank debt.Other financial items for the quarter show a loss of USD 8.8 millionmainly due to unrealized exchange losses on the remaining NOK 478million bond loans caused by a 10 % change in the USD/NOK exchangerate from Q2 2009 to Q3 2009.The income tax of USD 1.1 million in Q3 2009 refers mainly towithholding tax in various jurisdictions around the world where theSeaBird vessels have been operating.Loss in Q3 2009 was USD 24.7 million compared to a loss in Q2 2009 ofUSD 4.9 million and a profit in Q3 2008 of USD 17.5 million.Revenues were USD 120.5 million and the EBITDA USD 12 million for thenine months ended 30 September 2009. Comparable figures for 2008 wereUSD 154.9 million in revenues and USD 31.5 million in EBITDA, mainchanges explained above. Loss as of 30 September 2009 is USD 44.9million compared to a profit of USD 20.9 million as of 30 September2008.Capital Expenditures (CAPEX) for Q3 2009 was USD 9.1 million, whichmainly refers to manufacturing of 250 additional nodes, modificationsof the 500 nodes used on the Dalia field in Angola and modificationof the Hugin Explorer.The weakened USD against NOK and Euro has in general a negativeimpact on the operating expenses, interest expenses and gross debt asSeaBird has significant costs in other currencies and bond loans of atotal of NOK 478 million.OPERATIONAL HIGHLIGHTS Q3 2009The vessel utilization for all vessels operated by SeaBirdExploration for Q3 was historic low at 55%, down from 80% in Q2 2009.Q3 2009 has been a disappointing time for SeaBird, with idle vesselsawaiting survey work as the downwards market effect was felt acrossthe summer. In SeaBird's opinion, the 2D market is beginning to seeclear signs of improvement over Q4 2009 and into 2010 with the volumeof bids and tenders increasing significantly, and several contractsbeing awarded to SeaBird in October 2009.The Osprey Explorer has been cold stacked in Labuan throughout Q32009. However, the vessel left lay-up mid October, and is presentlyundergoing a periodical survey and dry dock in Singapore, prior tocommencing a minimum 4 months assignment as source vessel in Gulf ofMexico.Geo Mariner had a disappointing utilization of 9% in Q3 2009, aftercompleting her last contract during June and lying idle in EastAfrica until commencing a short Seychelles survey in October. She isnow in transit to West Africa for a 3D survey.Hawk Explorer and Harrier Explorer have continued on their long termtime charters to Fugro (ending November 2009) and PGS (ending Q4 4thQuarter 2011) with utilization of 98% and 97% respectively in Q32009. Following completion of the time charter with Fugro, HawkExplorer will undergo periodical survey and dry dock.Northern Explorer has remained idle in Singapore for the entirequarter, i.e. utilization for Q3 2009 is 0%. Crew levels were reducedto a minimum to reduce costs. The vessel has been awarded a 13 200 km2D survey in Indonesia for a consortium of oil companies, withcontingent options for up to approximately 20 000 km. Duration isexpected to be 5-7 months.Aquila Explorer completed her Far East surveys and then remained idleprior to her next firm contract commencing Q4 2009. Utilization forQ3 2009 was 20%. The vessel resumed work early October 2009 inIndonesia and is presently mobilizing to Australia for a 3,800 km 2Dsurvey, to be followed by another 4,500 km 2D survey and a 2,200 km2D survey, which will keep the vessel busy until March 2010.Munin Explorer completed her East Coast India survey in June andsubsequently mobilized to Ireland and Greenland with utilization forQ3 of 88%. She is now mobilizing to Gulf of Mexico for two contractslasting till end January 2010.The Hugin Explorer has successfully completed her full scale OBNsurvey on the Atlantis field for BP in Gulf of Mexico 21 September,ahead of scheduled time. She has since completed a short test surveyat BP time and cost. Utilization for Q3 was 86%. The Kondor Explorerjoined the Hugin Explorer on the Atlantis field survey as a sourcevessel. Utilization for Q3 was 97%. Both vessels are presentlymobilizing to Nigeria to carry out the Agbami field survey for StarDeepwater Petroleum Limited, an affiliate of Chevron Nigeria Limited.Operations are expected to commence mid November.LIQUIDITY AND FINANCINGCash and cash equivalents at 30 September 2009 amounted to USD 7.6million, compared to USD 10.1 million at the end of Q3 2008 and USD10.6 million at the end of Q2 2009. Net cash flow from operatingactivities for Q3 2009 was USD 5.8 million, compared to USD 8.3million for Q2 2009, while Q3 2008 was USD 9.1 million.Capital expenditure was USD 9.1 million during Q3 2009. There are nofurther significant committed investments for the rest of 2009,except for normal maintenance type expenditures and periodicalsurveys and dry dock of two 2D vessels.No instalments were paid during Q3 2009, except for USD 0.7 millionon the lease of Hawk Explorer. Net interest-bearing debt increased toUSD 179.1 million end of Q3 2009 from USD 169 million end of Q2 2009.Thereof USD 7.2 million was due to currency effect on the USD valueof the bond loans denominated in NOK.The NOK 200 million bond loan with maturity on 14 July 2009 wasrestructured and partly repaid at a discount during March and Aprilthis year through a Private Placement and new bank debt.The banks agreed in June 2009 to defer instalments of a total of USD14.1 million due during June - December 2009 to be added as a balloonto the last instalments in 2011-2012.Despite the reduced revenue during Q3 2009, SeaBird has been able tocomply with its financial commitments through the quarter, but hasrequested and received extended credit terms with various suppliersof goods and services over the last few months.Expected improved revenues during Q4 2009 and into 2010 will mitigatethis situation. However, SeaBird is also considering variousalternatives to improve its liquidity reserves, where capitalizing onthe OBN business is an alternative scenario.OUTLOOKThe 2D sector of the seismic industry has shown a remarkable recoveryduring the last part of Q3 2009 and the beginning of Q4 2009. Thenumber of tender invitations during the third quarter has increasedsteadily, and SeaBird has succeeded in securing contracts for all itsvessels. The only cold stacked vessel, the Osprey Explorer, leftlay-up mid October. The revenue levels for both 2D seismic surveysand source services have also increased slightly, although currentlevels are still far from rates experienced 12-18 months ago. SeaBirdis hopeful that the 2D segment of the seismic industry has bottomedout and that we will see a slow but steady increase in volume of workand improved rates moving into 2010.As a result of the successful operation with SeaBird's OBN surveywith Hugin Explorer and Kondor Explorer, SeaBird is experiencing anenormous interest from most major oil companies operating deep waterfields in West Africa, Gulf of Mexico and elsewhere. Several oilcompanies have expressed keen interest in using the OBN for continuesrepeat survey on several of their producing fields. SeaBird firmlybelieves this could materialize into long term engagement and justifya second OBN vessel operation shortly. The Board of Directors and Chief Executive Officer SeaBird Exploration Ltd3 November 2009The presentation and the full report with tables can be downloadedfrom the following links:http://hugin.info/136336/R/1352441/327191.pdfhttp://hugin.info/136336/R/1352441/327192.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 04.11.2009 - 07:31 Uhr
Sprache: Deutsch
News-ID 7862
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 307 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Seabird Exploration Group Third Quarter 2009"
steht unter der journalistisch-redaktionellen Verantwortung von
SeaBird Exploration Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
