Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announces the release of its second quarter 2017 financial statements.
HEADLINES Q2 2017:
Revenues of USD 36.1 million, down 23% from Q1 2017
Gross cost of sales of USD 41.6 million, down 10% from Q1 2017
EBITDA of negative USD 8.9 million, down from USD 8.9 million in Q1 2017
Total cash balance of USD 36.2 million in addition to USD 25 million undrawn working capital facility
Commencement of Polarcus Amani on a 5 1/2 year bare boat contract with Sovcomflot
Backlog of USD 200 million
Polarcus recorded vessel utilization of 75% in the quarter, up from 72% in Q1 2017, driven by the Polarcus Amanibare boat contract which started in April 2017.
Revenues declined 23% from Q1 2017 to USD 36.1 million. The reduced revenues were mainly driven by the change in the business mix as the vessel allocation to highly pre-funded multi-client and proprietary contract activities decreased as a result of Polarcus Amani commencing the 5 1/2 year bare boat contract with Sovcomflot in April 2017. The charter provides the Company with secured income for a prolonged period, in what continues to be an uncertain market.
As a result, bare boat charter revenue increased by 75% to USD 6.3 million. Vessel time for the remaining fleet also shifted from highly prefunded multi-client activity in Q1 2017 to proprietary contract activity in Q2 2017.
Proprietary contract revenues were negatively impacted by lower achieved day rates compared to Q1 2017, resulting principally from weather delays early in the quarter. There was no vessel allocation to multi-client projects in the quarter, down from 14% multi-client utilization the previous quarter.