MCG Loss Widens

Oslo-listed marine seismic data provider, MultiClient Geophysical (MCG), has plunged deeper into the red on impairment charge of USD 0.9 million, which relates to delays in sales triggers for mostly Norwegian projects.

MCG reported revenues in the second quarter 2016 of USD 2.7 million, compared to USD 1.4 million in the prior-year quarter. 93% of revenue came from the Americas, and the remaining 7% from Asia Pacific. 93% of the revenue was prefunding, and 7% is related to late sales.

In the first half year of 2016, MCG reported revenues of USD 3.6 million, up from USD 3.3 million in H1 2015.

Operating profit (EBIT) including net allocation of profit sharing agreement was USD -2.9 million in the quarter, compared to USD -1.8 million in the second quarter 2015. Adjusting for the non-recurring cost of impairment charge the operating profit (EBIT) including net allocation of profit sharing agreement was USD -2.0 million.

Net loss for the quarter was USD 3.2 million, compared to a net loss of USD 1.2 million in the second quarter 2015. Earnings per share were USD -0.035 for the quarter, compared to USD -0.014 in the corresponding quarter in 2015.

EBIT for the first half year of 2016 was USD -5.2 million (USD -3.3 million) after impairment and USD -4.3 million before impairment, while reported net earnings were USD -5.8 million (USD -2.9 million).

“MCG has completed a rigorous assessment of the operational cost of the company. This has resulted in approximately 30% reduction in operating expenses for H1 2016 compared to H2 2015. Also, the company has reduced employee compensation by close to 30% compared to the 2015 levels, without reducing the number of employees. The majority of this will take effect in H2 2016,” the company said in its Oslo filing on Friday.