SeaBird recorded a 18.4% active vessel utilization during the second quarter of 2017 compared to 36.4% in Q1. Seismic tender activity has picked up in 2017 relative to 2016, but contracting lead-time remains long with substantial competition and high market uncertainty. During quarter two, the company implemented a further reduction in onshore headcount and a complete conversion of all offshore crew contracts to flexible voyage contracts. The company continues its cost management program and is reviewing alternatives to further reduce expenses.
On 1 August, the company announced that all consents to the company’s proposed restructuring had been received. The restructuring reduces debt and lease obligations by approximately $37.5 million and the remaining financial debt will be $5.7 million with no significant debt principal repayments until 2020 and interest and charter hire with a payment in kind option.
As previously announced to the market, the company is in urgent need of equity financing in order to enable the company to continue trading as a going concern and avoid initiating voluntary liquidation procedures in Cyprus. The company is in active dialogue with potential capital sources. Any issuance of further equity capital is likely to result in substantial dilution to existing shareholders. There can be no guarantee that sufficient additional financing is available in a timely manner.