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Monday, 01 December, 2008, 22:10 GMT | more >>

Vessel tie-ups hit Scan results



By Upstream staff 

Norwegian seismic player Scan Geophysical reported strong full-year revenues and earnings today but saw fourth-quarter net losses on vessel downtime and higher costs.

Scan reported full-year revenue of Nkr406 million ($77.8 million), up from Nkr174 million in 2006, driving earnings of Nkr14 million for the year, compared with a net loss of Nkr 39 million previously.

The company reported earnings per diluted share of Nkr0.14, up from a loss of Nkr0.94 a year ago.

However, for the fourth quarter, the company saw revenue rise to Nkr90 million from Nkr63 million in the year-ago period, contributing to a net loss of Nkr12 million, or Nkr0.13 per diluted share, down from a loss of Nkr30 million, or a loss of Nkr0.37 per diluted share a year ago.

For the fourth quarter Scan reported a loss before income tax, debt and amortisation of Nkr7 million, compared with a loss of Nkr20 million in the fourth quarter of last year.

The company attributed its weak fourth quarter results to an extended class docking in Dubai for its Geo Searcher due to limited yard capacity. The Scan Resolution also recorded five days of downtime as it completed technical improvements in Curacao, Venezuela, during the period. It also spent 16 days at standby rates in the quarter while waiting for its client PDVSA to obtain a permit to start shooting a survey and recorded a further eight days of operational downtime during the period.

The company was also hit by large increases in payroll as well as general and administrative costs in the period.

Scan is currently converting the Scan Stigandi into a 3D vessel in Canada, with delivery due next month. The company said delivery of the first of three newbuild 10-streamer survey vessels, the Scan Empress, would be delayed by three months to September 2008.

The company said it expected to see strong markets for seismic services in 2008, with continued demand for its services.


Thursday, 28 February, 2008, 08:42 GMT  | last updated: Thursday, 28 February, 2008, 08:42 GMT

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