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Monday, 01 December, 2008, 23:50 GMT | more >>

Low earnings and delays hit Scan



By Upstream staff 

Norway's Scan Geophysical has unveil low fourth quarter earnings for 2007 on the back of higher operational costs and lower revenues, adding that its newbuild programme in India has been hit by delays.

Preliminary results showed earnings before income tax, depreciation and amortisation (EBITDA) came in between Nkr7 million to Nkr10 million ($1.3 million to $1.8 milion) on revenues of Nkr 95 million.

EBITDA for the year came in at between Nkr57 million and Nkr60 million.

The company blamed the drop in revenues due to docking of the MV Geo Searcher production and delayed permits resulting in lower than expected production for the MV scan.

However, dayrates for both units have been good, Scan said.

Meanwhile, Scan also has 10 newbuild streamer vessels on order at ABG Shipyard in India. Delays in the delivery of these vessels are expected as the yard is waiting for permits from local authorities for new facilities where some of the units are due to be built.

The MV Scan Empress is expected to be delayed by around three months with new delivery set for September this year, while the MV Scan Finder has seen little progress since steel was cut in August last year.

Scan is awaiting new delivery dates from the yard.

In Canada, the company is upgrading the MV Scan Stigandi to a 3D seismic acquisition vessel.

Final cost of the conversion is $8 million higher due to the company opting for a four-streamer configuration rather than the three-streamer originally planned.

Delivery of the unit is due on 15 March 2008.


Wednesday, 20 February, 2008, 09:43 GMT  | last updated: Wednesday, 20 February, 2008, 10:37 GMT

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