Seismic service provider: SeaBird Exploration.
Demand drop clips SeaBird's wings
Seismic services provider SeaBird posted a first half loss of $20.2 million amid reduced seismic demand.
Revenue for the first six months fell to $91.6 million as compared with $98.4 million a year ago.
SeaBird managed to reduce its losses to $4.9 million during the June quarter as compared to a first quarter loss of $15.3 million.
Vessel utilisation rose to 80% in June quarter as compared to 62% in the March quarter.
However, revenue has remained flat as one of the vessel, Hugin Explorer, is earning less than half of its operating day rates during its mobilisation and demobilisation.
Despite an improvement in the June quarter, SeaBird said the seismic market could face a further slowdown in the coming months.
The seismic contractor has reduced its workforce by 18% and cold stacked one vessel in anticipation of a further reduction in seismic demand. It expects to decrease the size of its 2D seismic operating fleet on worsening market conditions.
