Seabird Exploration : SeaBird - Report 1st quarter 2012
05/05/2012| 03:05am US/Eastern
While still a challenging market environment, the first
quarter showed signs of improving customer demand. Fleet
utilization increased from 60% in the fourth quarter of
last year to 65% for the first quarter of this year.
During the quarter, the company entered into or extended
contracts representing an estimated value of
approximately USD 30 million.
Hugin Explorer and Munin Explorer completed the
acquisition part of the ONGC contract and the vessels
demobilized 10 February 2012. The data processing and
interpretation part of the project will be finalized
within 12 months from the demobilization date. Munin
Explorer subsequently commenced a three-year time charter
contract with Fugro.
GGS Atlantic was relocated to Remontowa Shipyard in
Poland for scheduled class renewal.
Following a streamer incident with the Aquila Explorer in
2011, the vessel was rigged to 8 km hybrid streamer.
Mr Dag Reynolds was appointed Chief Executive Officer of
the company, replacing Mr Tim Isden who stepped down from
the position effective 6 February 2012. Mr Reynolds
assumed his position with the company 6 April 2012.
Mr Nils Haugestad was appointed Chief Financial Officer
and assumed his responsibilities with the company as of 1
COMPARISON OF Q1 2012 WITH Q1 2011
Voyager Explorer replaced Geo Mariner in Q3 2011. This had a
moderate effect on comparable figures in prior periods.
Furthermore, the Ocean Bottom Node (''OBN'')
business has been divested and represents the discontinued
All figures below relate to continuing operations unless
otherwise stated. The company reports a loss of USD 12.5
million for the first quarter 2012 (negative USD 22.6 million
same period in 2011). Revenues were USD 34.3 million in Q1
2012 (USD 16.6 million). The increased revenues are mainly
due to fleet composition, higher utilization of the vessels
in Q1 2012 compared to Q1 2011 and multi-client sales.
Operating expenses were USD 27.3 million in Q1 2012 (USD 12.5
million). The change is mainly due to fleet composition and
higher vessel utilization. EBITDA was USD 2.7 million in Q1
2012 (negative USD 1.5 million). Depreciation and
amortization were USD 11.4 million in Q1 2012 (USD 8.3
million). The increase is mainly due to higher multi-client
sales amortization for the period, partly offset by a
reduction in depreciation resulting from the impairment of
vessels and equipment completed in 2011. Interest expense was
USD 3.1 million in Q1 2012 (USD 3.6 million). The decrease is
a result of the financial restructuring completed in 2011.
Other financial items, net expenses, of USD 0.4 million in Q1
2012 (USD 6.0 million) decreased mainly due to the currency
effect on the bond loans recognized in Q1 2011. Capital
expenditures were USD 1.3 million in Q1 2012 (USD 0.3
million). Major capital cost items include the purchase of
seismic acquisition equipment and routine engine overhaul for
Harrier Explorer as well as the replacement of streamer
sections on the Aquila Explorer. A weakening of USD against
NOK and EUR has in general a negative impact on the operating
The utilization rate for 2D/3D vessels in operation was 65%
in Q1 2012.
LIQUIDITY AND FINANCING
Cash and cash equivalents were USD 13.7 million (USD 11.4
million), of which USD 3.1 million was restricted in
connection with bid and performance bonds as well as deposits
to the bond service account. Net cash from operating
activities was USD 2.5 million in Q1 2012 (negative USD 36.1
Following the financial restructuring completed in December
2011, the company has one bond loan and one convertible loan
outstanding. The 6% secured bond loan has a face value of USD
89.9 million and is recognized in the books at amortized cost
of USD 77.1 million per Q1 2012. The bond loan matures 19
December 2015 and has principal amortization due in
semi-annual increments of USD 2 million starting 19 December
2012. The 1% unsecured convertible loan with Perestroika has
a face value of USD 14.9 million and is recognized in the
books at amortized cost of USD 11.7 million per Q1 2012. The
convertible loan matures 22 September 2014 and has no
principal amortization. Interest on the convertible loan is
paid in kind.
The credit facility provided by Fugro to finance working
capital requirements for the ONGC contract was fully repaid
during the quarter. This financing transaction has been
classified under discontinued operations.
Instalments of USD 0.8 million were paid on the lease for
Hawk Explorer during Q1 2012 (USD 0.7 million). Net
interest-bearing debt was USD 90.9 million at the end of Q1
2012 (USD 201.4 million). The company was in compliance with
all financial covenants as of 31 March 2012.
The company is seeking to increase its vessel capacity, but
without taking on substantial long term liabilities, in order
to benefit from improving market conditions. The goal is to
have a more scalable business model going forward.
We expect a significant upswing in the source vessel market
during the second half of 2012 and have extended the bareboat
charter on the Kondor Explorer with another two years as a
response to increased demand.
The Board of Directors and
Chief Executive Officer
SeaBird Exploration PLC
3 May 2012
This information is subject of the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading