Seabird Group Third Quarter Report Shows Negative Results

SeaBird Group reports a loss of USD 75.1 million for the third quarter 2011 (USD 19.9 million same period in 2010).

Revenues were USD 35.2 million in Q3 2011 (USD 43.2 million). The decreased revenues are mainly due to lower revenues from the OBN operation and multiclient sales and more idle time for the vessels in Q3 2011 compared to Q3 2010.  Operating expenses were USD 38.4 million in Q3 2011 (USD 36.1 million). The change is mainly due to increased selling, general and administration expenses of USD 2.1 million.  EBITDA were negative at USD 3.0 million in Q3 2011 (positive USD 7.9 million).  The vessel fleet has been impaired by USD 62.6 million and goodwill by USD 5.1 million in Q3 2011 to reflect the declined market situation.

Interest expense was USD 5.2 million in Q3 2011 (USD 2.9 million). The increase is mainly due to higher debt level (PGS convertible loan agreement) and increased interest margins on the loans. Other financial items, net income, of USD 1.9 million in Q3 2011 (net expense of USD 8.0 million) refer mainly to unrealised currency exchange gain and fees to advisors related to restructuring of debt. Capital expenditures were USD 5.3 million in Q3 2011 (USD 4.6 million). Major capital cost items refer to rigging of the Voyager, and intermediate classification costs of the Osprey.

A weakening of USD against NOK and EUR has in general a negative impact on the operating expenses, interest expenses and gross debt as SeaBird has significant costs in other currencies than USD and bond loans of a total of NOK 481.75 million.

Outlook
Following the divestment of the OBN division, SeaBird will concentrate on the business activities of its 2D and 3D 4-6 streamer fleet. Although still some idle time was experienced during Q3 and into Q4 2011, the general market is believed to be improving in 2012.

More information Seabird Group 3rd Quarter Results

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Offshore Nieuws Staff, 30 November 2011, Images Seabird Group