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Low utilisation clips Seabird profits



By Upstream staff 

Norwegian seismic outfit Seabird Exploration reported a net loss of $3 million in the fourth quarter, on lower-than-expected vessel utilisation and higher depreciation costs as it continued its vessel conversion programme and revalued two of its fleet.

Seabird reported net income of $3.2 million in the year-ago quarter. The company reported a fourth-quarter loss per diluted share of four cents, compared to earning per share of four cents a year ago.

Results were also hit by higher operating and sales, general and administrative expenses.

Revenues for the period were $35 million, up from $20.5 million previously, and a record for the company.

However, Seabird said utilisation rates were lower than expected even though all of its vessels were in operation. It said average vessel utilisation was 82%, with idle time for the Geo Mariner, low utilisation for the Osprey Explorer and dry-docking for the Kondor Explorer.

For the year, Seabird reported a loss of $8.9 million, or a loss of 11 cents per diluted share, compared with net income of $11 million, or 15 cents per diluted share, in 2006.

Revenues for the year rose to $95.8 million from $46.3 million previously.

Seabird said it had now taken delivery of five new seismic vessels in 12 months. With the delivery of the Hugin Explorer in the second quarter of this year the company will have completed its aggressive vessel conversion programme and would be able to focus on operations using its existing fleet amid expected continued high demand, it said.


Tuesday, 26 February, 2008, 08:02 GMT  | last updated: Tuesday, 26 February, 2008, 08:23 GMT

Ready to soar?: Seabird said it was wrapping up its aggressive vessel conversion programme
 

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