Pulse Seismic Inc. Reports Q2 2016 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 07/27/16 -- Pulse Seismic Inc. ("Pulse" or "the Company") (TSX: PSD)(OTCQX: PLSDF) reports its financial and operating results for the three and six months ended June 30, 2016. The unaudited condensed consolidated interim financial statements and management''s discussion and analysis will be filed on SEDAR () and will be available on Pulse''s website ().
"Despite generating very low data library sales in the first half of 2016, we covered our operating costs, bought back Company shares and funded a significant addition to our 2D seismic data library out of cash flow," stated Neal Coleman, Pulse''s President and CEO. "Cash EBITDA generated to date continues to strengthen our balance sheet, with 39 percent of sales being converted to cash EBITDA in the first half. Being debt-free while also generating shareholder free cash flow even in this economic environment positions Pulse to continue pursuing growth opportunities."
HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016
Financial highlights for the three and six-month periods are:
OUTLOOK
Oil and natural gas prices are still weaker than one year ago and mineral lease auctions or "land sales" in Alberta and B.C. have been extremely low. According to the Canadian Association of Oilwell Drilling Contractors (CAODC), drilling rig utilization in western Canada averaged only 6 percent, 5 percent and 9.5 percent in April, May and June, respectively, approximately half the rates in the same months of 2015, an already-weak year. In late April, the Petroleum Services Association of Canada sharply reduced its 2016 drilling forecast to only 3,325 wells across Canada, down from its first revised forecast of 4,900 wells and well below the more than 5,300 wells drilled in 2015.
These indicators of industry weakness are all suggestive of low traditional seismic data sales and, accordingly, Pulse''s short-term outlook remains more cautious than one year ago. Following slightly stronger first-quarter data library sales, second-quarter sales were down considerably from 2015 and it is possible that traditional sales for the year will be lower than in 2015.
Pulse does see improved prospects for merger and acquisition activity in 2016, however, as continued low commodity prices suppress E&P company cash flows and banks further curtail borrowing capacity in the face of declining financial ratios and net asset values. This should encourage the narrowing of bid-ask spreads on producing oil and gas assets and corporate entities, helping to close deals. Many asset packages and companies continue to be marketed.
While greater M&A activity would create favourable conditions for additional transaction-based seismic data sales, their unpredictability means that Pulse will continue to lack visibility as to its 2016 revenues. Corporate transactions are a necessary but not sufficient condition to generate seismic data relicensing fees; transaction-based sales also depend on the nature of the underlying corporate transaction and on the buyer''s plans for the assets in question.
Pulse''s critical strengths continue to be its very low costs and strong balance sheet, including zero long-term debt, zero current short-term borrowing and cash at June 30 of over $1.8 million. The Company''s ability to generate cash EBITDA and shareholder free cash flow in the first and second quarters, with sales of only $1.8 million and $2.8 million, respectively, underscores the Company''s low cash cost structure.
With its annual cash costs having been reduced to approximately $6.0 million, Pulse can continue to generate cash EBITDA and shareholder free cash flow at low revenue levels while buying back additional shares and maintaining the financial flexibility to grow its seismic data library. Pulse''s revised $30.0 million credit facility is undrawn as of this date and includes an accordion feature for expansion to $70.0 million.
Pulse''s long-term goal continues to be growing into Western Canada''s largest licensable seismic data library. The Company''s history demonstrates that its revenues could accelerate at any time, and could increase significantly with virtually no increase in operating costs, making Pulse a high-margin business under even modestly positive industry conditions.
CONFERENCE CALL
The Company''s next conference call will be held after the release of its year-end 2016 results, in March 2017. Should investors or analysts wish to contact the Company, please feel free to contact Neal Coleman or Pamela Wicks at the e-mail address or telephone number provided below.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 28,600 square kilometres of 3D seismic and 447,000 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada''s oil and natural gas exploration and development occur.
This news release contains information that constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities legislation which includes, among other things, statements regarding:
Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward-looking information. Pulse does not publish specific financial goals or otherwise provide guidance, due to the inherently poor visibility of seismic revenue.
The material risk factors include, without limitation:
The foregoing list is not exhaustive. Additional information on these risks and other factors which could affect the Company''s operations and financial results is included under "Risk Factors" for the most recently completed financial year and interim periods. Forward-looking information is based on the assumptions, expectations, estimates and opinions of the Company''s management at the time the information is presented.
Contacts:
Pulse Seismic Inc.
Neal Coleman
President and CEO
Pamela Wicks
VP Finance and CFO
403-237-5559
Toll-free: 1-877-460-5559
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 27.07.2016 - 17:12 Uhr
Sprache: Deutsch
News-ID 1449411
Anzahl Zeichen: 2454
contact information:
Contact person:
Town:
CALGARY, ALBERTA
Phone:
Kategorie:
Oil & Gas
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 213 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Pulse Seismic Inc. Reports Q2 2016 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Pulse Seismic Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
