SeaBird in Strategic Overhaul as Loss Continues

Oslo-listed SeaBird said it will focus on a more asset-light and flexible business model after recognizing a continuous widened quarterly loss.

For the period ended September 30, 2019, seismic player booked loss of around $5.1 million, compared to loss of $4.6 million in the corresponding period in 2018.

SeaBird generated Q3-2019 revenues of $16 million, against $5.4 million in Q3 2018 as utilization picked up and fleet size increased.

The company had 68% vessel utilization in Q3 2019 with five vessels employed on different projects. This compares with three vessels on projects and 55% utilization in Q3 2018.

The profitability in the quarter was negatively affected by depreciation, amortization and impairment of $3.2 million, predominantly due to the acquisition of Petrel Explorer, Fulmar Explorer, Eagle Explorer and related seismic equipment, multi-client amortization and impairment booked in the quarter.

As a part of the organizational restructuring, the company will relocate its operational headquarters from Oslo to Bergen, Norway.

In connection with the restructuring, the company expects to reduce its SG&A (Selling, General and Administrative Expenses) level by approximately 40% during 2020.

Going forward, the company aims restructure its organization to be project based and geared towards operating 3-4 vessels operating in OBN source and 2-3 vessels in niche 3D and 2D.

The company said it will also maintain capacity, in terms of operational competence, vessels, and equipment, for taking on financially attractive niche 3D streamer projects.

Vessel capacity in addition to the owned vessels will be chartered in on an ‘asset-light’ and flexible, ‘pay-as-you-earn’ basis. The company already charters the Voyager Explorer and Nordic Explorer on such terms and is also in strategic partnership discussions with several seismic tonnage providers.

Subsea World News Staff

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