SeaBird Exploration Group - Interim Results Second Quarter 2007

Highlights Second Quarter 2007

• Consolidated revenues of USD 17.2 million, an increase of 108% compared to Q2 2006.
• EBITDA of USD 1.2 million, down USD 2.6 million compared to Q2 2006.
• Performance negatively impacted by low vessel utilization of the Geo Mariner, dry-docking of the Northern Explorer in April, downtime on the Hawk Explorer caused by a streamer incident and downtime in connection with mobilization of a SeaBird supplied streamer as part of a changed and improved charter contract, as well as delays on delivery of new vessels.
• Aquila Explorer was delivered from yard at the end of June, while the Munin Explorer was delivered in the beginning of August, bringing total vessels in operation to seven.
• Harrier Explorer is scheduled for sea-trials this week, Hugin Explorer is scheduled for delivery Q1 2008, while Raven will be sold and we are currently evaluating other alternatives for a new shallow water vessel.
• Bank loans of USD 50 million secured.
• Continued strong markets.

Key financial performance figures

The SeaBird Group reported consolidated revenues of USD 17.2 million in Q2 2007, an increase of 108% compared to Q2 2006.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") were USD 1.2 million for the quarter, compared to USD 3.8 million for Q2 2006. The weak quarterly profitability is caused by several factors. Geo Mariner had low vessel utilization in the period and also had to recognize extraordinary streamer rental costs of close to USD 1 million in the quarter. The Northern Explorer was in dry-dock in April and not back in operation before early May. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million. Furthermore, the Hawk Explorer had a streamer incident in April where replacement of equipment was significantly delayed, bringing the vessel out of production for a significant part of Q2.

Earnings before interest and taxes ("EBIT") were negative with USD 2.3 million in Q2 2007 compared to 3.1 million for Q2 2006. Depreciations increased to USD 3.5 million, up from USD 0.7 million for Q2 2006.

Net loss for Q2 2007 was USD 3.1 million, compared to a net profit of USD 3.0 million for Q2 2006.

Operational highlights Q2

Geo Mariner completed SeaBird's first ever multi-client survey on the Seychelles in the first half of April. Total investment capitalized in the survey in March and April was around USD 1.5 million for this survey. We are optimistic about the prospectivity of the area and we have also secured a small equity interest.

Subsequent to the completion at the Seychelles, the Geo Mariner mobilized for a small project in the Mediterranean partly to get out of the region before the monsoon and partly because of several interesting projects coming up in the Mediterranean. However, the expected projects in the Mediterranean did not materialize and the vessel was idle for several weeks in Q2 and the beginning of Q3. The vessel has now been brought back to Dubai and is currently waiting for new streamers before she can start a survey in The Arabian Gulf in the end of August. We expect significant improvements in the utilization of the Geo Mariner from September. On top of the low vessel utilization, Geo Mariner had to recognize extraordinary streamer rental costs of close to USD 1 million in Q2. We are in the process of putting our own streamers on board the Geo Mariner and ending the streamer lease.

Northern Explorer returned from dry-dock in South Africa in the end of April. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million and capitalized cost of around USD 0.2 million. Northern Explorer did a survey for a major oil company in Mozambique in May and beginning of June before she went to West Africa on a time-charter with GX Technologies ("GXT"). This contract will most likely be extended until the beginning of 2008, interrupted by a two-three weeks contract for an oil company in September/October.

Osprey Explorer completed the contract with CGG Veritas in the Gulf of Mexico at the end of July. We currently experience a higher demand for 2D capacity, hence we have decided to take the vessel to yard in August to outfit her to full 2D operating mode, including streamer and other equipment. The related capital expenditures are expected to be around USD 10 million. She is expected to start on a one-year time-charter for GXT early September, with options both for early termination and a one-year extension.

Kondor Explorer continued operations for CGGVeritas on a wide-azimuth survey in the Gulf of Mexico. This contract expires in November and we are currently looking at various alternatives subsequent to this contract.

Hawk Explorer is on a two-year charter ending in December 2008, with a one-year renewal option, for Fugro. In April, the vessel had a streamer incident. SeaBird has agreed to replace the Fugro streamer and take over responsibility for the operation of the streamer. The new contract with Fugro will improve the profitability of this contract going forward. However, delays in getting new equipment on-board subsequent to the incident caused stand-by for a significant part of Q2. The vessel is now in regular operations.

SeaBird continues to strengthen the management and operating capacity across the group in line with the requirements of the fleet expansion. For Q2 2007, this has contributed to an increase in selling, general and administrative expenses to USD 3.9 million, from USD 3.2 million in the comparable quarter in 2006. Approximately USD 0.4 million of the cost for Q2 2007 is non-cash cost related to the employee stock option incentive plan.

Conversion projects

Aquila Explorer was delivered from yard 26 June 2007 and immediately started the long transit to the Gulf of Mexico. She arrived in Galveston last week and has now started her six months contract (with two six months options) with Petroleum Geo-Services ("PGS") as a source/2D vessel. The total cost of the vessel including interest capitalization ended up around USD 38 million.

Munin Explorer was delivered from the vessel owner 1 August 2007 and immediately started to operate as a source vessel in the North Sea on a short-term contract for PGS. The next scheduled source-job was cancelled on short notice and as we see a continued demand for 2D capacity, we have decided to put the necessary streamer and equipment on board to make her ready to operate as a 2D vessel. Estimated capital expenditures for SeaBird including both the initial seismic equipment and the upgrade to 2D mode is around USD 16 million. Munin Explorer is chartered on a five-year firm bareboat charter with 3 x 1-year options. SeaBird has an option to purchase the vessel during the firm charter.

The Harrier Explorer is scheduled for sea-trials this week. Continued challenges related to asbestos and late delivery of compressors has caused significant delays and overruns for this vessel and the projected total cost is now revised to close to USD 50 million. The vessel is committed on a four-year firm time-charter with a two-year option with PGS as a source vessel. PGS has the option to use the vessel as a 2D vessel provided they cover the cost of additional seismic equipment and additional operating cost. The contract is scheduled for commencement in September 2007.

We currently expect to take delivery of the Hugin Explorer mid-December to start a two-month conversion to a state of the art node vessel for our SeaBed operations. We are currently in the final phases of drawings and committing to steel work and other equipment. The vessel is chartered on a five-year firm bareboat charter with 3 x 1 year options for the new-built vessel. The contract value for the firm period is around USD 57 million with an option to purchase the vessel at the expiry of the firm 5 years period. The vessel is expected to be operational in Q1 2008. Furthermore, we are investing in 500 new deep-water nodes for the SeaBed operations with projected delivery in Q4 2007. Total investments in SeaBed operations are estimated to be around USD 55 million.

In October 2006 the Company acquired the Raven Explorer with the intention to convert it into a shallow water 2D/3D vessel. Third party feasibility studies indicated that the converted vessel might not meet our required specifications. We have therefore initiated the search for an alternative. We are currently negotiating the sale of the Raven Explorer and expect to recover the purchase price, capitalized interest and other cost in the project.

Liquidity and Financing

At 30 June 2007, cash and cash equivalents amounted to USD 36.0 million, compared to USD 69.7 million at the end of the previous quarter. Net interest bearing debt was USD 120.5 million compared to USD 79.7 million at the end of the previous quarter.

In Q2, the Company has drawn the final USD 8 million at a credit facility agreement related to the Aquila Explorer and Osprey Explorer. A total of USD 27.8 million was outstanding under this facility as of 30 June 2007. This credit facility has an interest rate of LIBOR + 1.5% and will be repaid over five years.

Furthermore, the Company has entered into a five-year secured term bank loan with a borrowing limit of USD 25 million with interest rate of LIBOR + 1.25% and an additional unsecured revolving bank credit facility of USD 25 million with interest rate of LIBOR + 1.75%. The Company had not drawn under these facilities as of 30 June 2007.

Outlook

We continue to see a very strong demand within all segments of the seismic industry. We expect the supply within our segments to increase slightly. However, the demand side is expected to more than absorb the additional capacity and we expect to see a strong 2008 with 9 vessels in operation.

On the basis of the disappointing vessel utilization for the Geo Mariner in Q2 and Q3 and delays on delivery of the other vessel, we will not meet our targets for 2007. Revenues are expected to be in the range of USD 110-120 million for the full year, while EBITDA is expected to be in the range of USD 50 million. Total capital expenditure is expected to be in the range of USD 130-140 million for the full year.

The presentation and the full report with tables can be downloaded from the following links:

2nd Quarter 2007 (PDF)
Q2 Investor presentation (PDF)

Mi opinión: Pérdidas, mayor endeudamiento... no parecen buenos resultados, y el mercado los ha "premiado" con un revolcón del 25% de caída. Sin embargo, ellos aseguran que el mercado está muy bien y la demanda muy fuerte y superior a la oferta, y si es así los resultados repuntarán con fuerza.

SBX completes vessel conversion

June 26, 2007. Singapore/Dubai/Oslo: SeaBird Exploration Limited (BVI) ('SeaBird' or 'SBX').

The conversion of Aquila Explorer is complete and she has successfully completed her sea-trials in Singapore and is mobilizing to start her 6 months + 2 x 6 months contract with Petroleum Geo-Services ("PGS") as a source/2D vessel.

She departed the shipyard at 09:00 hours Singapore time.

- - -

SeaBird Exploration Limited (BVI) `SeaBird` is a global provider of marine 2D and 3D seismic data, solutions for seabed acquisition of 4C/4D multimode seismic, and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow water 2D/3D market. Main focus for the company is proprietary seismic surveys (contract seismic). SeaBird does not have a multi-client data library. Main success criteria for the company are an unrelenting focus on Quality, Health, Safety and Environment (QHSE), combined with efficient collection of high quality seismic data.

All statements in this press release other than statements of historical fact are forward-looking statements and are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include SeaBird`s reliance on a cyclical industry and the utilization of the company's vessels. Actual results may differ substantially from those expected or projected in the forward-looking statements.

Mi comentario:
Viendo la cotización, pondría la mano en el fuego a que algunos lo sabían una o dos semanas antes de que se hiciera oficial!!

ConocoPhillips boss says vast new oil areas needed

The head of US oil giant ConocoPhillips has said 'vast new areas' will have to be opened up to meet a projected 40 pct growth in demand for oil in just over two decades.

Chairman and chief executive James Mulva said: 'By 2030 we would have to bring on line 105 million barrels a day of new production. To meet this challenge, vast new areas will need to be opened and explored.'

He told the two-day Asia Oil and Gas Conference here: 'New technology will be needed to access resources that are in more remote locations, or trapped in unconventional reservoirs.'

According to the Paris-based International Energy Agency, the world will require 120 million barrels per day by 2030 compared to 85 mln currently.

The scale of investment required is enormous, Mulva said, noting the IEA had estimated that 20 trln usd in cumulative energy investment would be needed through to 2030.

Even so, international oil firms may not be allowed to invest in the right places, he said, adding they are currently unable to gain rights to two-thirds of the world's oil resources.

Mulva said the industry is seeking out non-traditional oil suppliers, especially in the Asia-Pacific region, which will lead the demand for oil.

By 2030, the region will consume one-third of the world's oil supply but will have less than five pct of global production, he said.

The IEA has projected that the demand for natural gas will grow at an even faster pace than oil, increasing by 66 pct by 2030.

'Regional gas markets are growing and price realisations are rising. These factors now make gas a prime exploration target, instead of merely an adjunct to the search for oil,' Mulva said.

The chief executive also said global energy demand growth was unsustainable unless enough resources were committed to overcome environmental concerns over issues such as carbon dioxide emissions.

SeaBird Exploration Group - Interim Results First Quarter 2007

Highlights First quarter 2007

• Consolidated revenues of USD 23.2 million, an increase of 216% compared to Q1 2006 and 13% compared to Q4 2006
• EBITDA of USD 9.4 million, an increase of 213% compared to Q1 2006 and 76% compared to Q4 2006.
• Contracting the Munin Explorer on a five year bareboat charter with delivery expected in July.
• SeaBird continued the focus on the conversion of five vessels, bringing the total number of planned vessels in operation to ten by the end of 2007, compared to five in the beginning of the year. Progress of conversion projects is in line with previous guidance.
• USD 65 million raised from the bond market in February, and commitments in place securing the remainder of the projected funding need.
• In February, SeaBird won the principal action in the arbitration with Global Geo Services ASA ("GGS").
• Senior management strengthened by new CFO, Head of Operations Dubai office and Head of SeaBed Geophysical.

Key financial performance figures

The SeaBird Group reported consolidated revenues of USD 23.2 million in Q1 2007, an increase of 216% compared to Q4 2005 and 13% compared to Q4 2006.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") were USD 9.4 million for the quarter, an increase of 213% compared to Q1 2006 and 76% compared to Q4 2006. The improvements from Q1 2006 are mainly due to the strengthening of the seismic markets, with substantially better rates combined with the fact that Hawk Explorer and Osprey Explorer commenced operations in Q4 2006. The main reason for the improvement from Q4 2006 was the GGS loss of around USD 5 million recognized in Q4 2006, compared to a further impairment of the GGS shares of USD 0.5 million in Q1 2007.

Earnings before interest and taxes ("EBIT") increased to USD 6.1 million in Q1 2007 an increase of 149% compared to Q1 2006 and 68% compared to Q4 2006. Depreciations increased to USD 3.2 million, compared to USD 0.5 million for Q1 2006 and USD 1.7 million for Q4 2006. This increase is partly caused by a full quarter of depreciations for Hawk Explorer and Osprey Explorer, in addition to the effect of the revaluation of Geo Mariner and Northern Explorer as of 31 December 2006.

Net Income for Q1 2007 increased 117% over the comparable quarter in 2006, to USD 5.0 million.

Operational highlights Q1

Geo Mariner completed a survey with Pakistan for Oil & Gas Development Company Limited (OGDCL) in January 2007. She continued on a survey in Kenya in February. Due to an acquisition postponement with a client, Geo Mariner performed SeaBird's first ever multi-client survey on the Seychelles in March, continuing to mid-April. Even though we are very optimistic about the prospectivity of the area and we have secured a small equity interest, this does not constitute a change in SeaBird's strategy. However we may be involved in similar projects in the future. Total investments capitalized in Q1 is around USD 0.9 million for this survey. Geo Mariner has now relocated to the Mediterranean for a series of shorter surveys.

Northern Explorer completed two surveys in East Africa in the beginning of the quarter before she went to dry-dock in South Africa in the middle of March. She returned from dry-dock in the end of April and is currently doing a survey for Norsk Hydro in Mozambique.

Osprey Explorer and Kondor Explorer continued operations for CGGVeritas on a wide-azimuth survey in the Gulf of Mexico.

Hawk Explorer is on a 2-year charter ending in December 2008, with a one-year renewal option, for Fugro.

SeaBird continues to strengthen the management and operating capacity across the group in line with the requirements of the fleet expansion. For Q1 2007, this has contributed to a substantial increase in selling, general and administrative expenses to USD 3.9 million, from USD 2.3 million in the comparable quarter in 2006 and USD 1.7 million in the previous quarter. Approximately USD 0.4 million of the cost for Q1 2007 is non-cash cost related to the employee stock option incentive plan.

In January, SeaBird acquired GeoBird Management Middle East FZ LLC (GeoBird) for USD 2 million. GeoBird is a maritime management company that has been responsible for the maritime operations of the SeaBird fleet of vessels since 2003. GeoBird's business is mainly related to the SeaBird maritime operations, but GeoBird is also providing maritime management services for other leading seismic companies.

Conversion projects

As previously announced, asbestos was found on board the Harrier Explorer in March, despite the fact that she has an "asbestos free certificate" from an independent consultant. Even though all asbestos has now been removed and the project is back on track, this is the main reason that the delivery of the vessel is delayed until the end of July 2007. The removal of the asbestos and the extended yard-stay has increased the projected total cost from around USD 40 million to around USD 44 million. SeaBird has entered into a 4year firm time-charter with a 2-year option with Petroleum Geo-Services ASA (PGS) as a source vessel. PGS has the option to use the vessel as a 2D vessel provided they cover the cost of additional seismic equipment and additional operating cost. The contract value for the firm period is approximately USD 58 million and is scheduled for commencement in August 2007.

Aquila Explorer is under conversion to a source vessel at a Singapore yard. The vessel is expected to be ready for delivery in a couple of weeks with a total cost of around USD 35 million. The vessel is contracted to PGS for six months with two six month options.

In January 2007, SeaBird entered into a 5year firm bareboat charter with Økland Fiskebåtrederi AS ("Økland") with 3 x 1 year options for the vessel Munin Explorer. Økland will carry out the conversion to a Source/2D vessel at their cost with the exception of the cost of certain seismic equipment. Estimated capital expenditures for SeaBird are around USD 8 million. The contract value for the firm period is approximately USD 33 million and is scheduled for commencement in July 2007. SeaBird has an option to purchase the vessel during the firm 5year period.

In October 2006 SeaBird Exploration acquired the Raven Explorer for USD 13 million. The vessel is a new-built Anchor Handling Tug Supply vessel and will be converted into a shallow water 2D/3D vessel. Total project cost including conversion and purchase price is estimated to in the range of USD 50 million, depending on final specifications. The vessel is expected to be operational in the fourth quarter of 2007.

In December 2006 SeaBird Exploration Limited and Siem Offshore Inc entered into a 5 year firm bareboat charter with 3 x 1 year options for the new-built vessel Siem Mariner, a DP2 vessel. The contract value for the firm period is around USD 57 million. SeaBird has an option to purchase the vessel at the expiry of the firm 5 years period. SeaBird will convert the vessel to a state of the art SeaBed seismic vessel. The vessel is expected to be operational in the fourth quarter of 2007. Furthermore, SeaBird is investing in 500 new deep water nodes for the SeaBed operations with projected delivery by the end of Q3 or beginning of Q4 2007. Total investments in SeaBed operations are estimated to be around USD 50 million.

Liquidity and Financing

At 31 March 2007, cash and cash equivalents amounted to USD 69.7 million, compared to USD 16.4 million at the end of the previous quarter. Net interest bearing debt was USD 79.7 million compared to USD 68.2 million at the end of the previous quarter.

In February 2007 SeaBird decided to issue a new bond loan in the Alternative Bond Market at the Oslo Stock Exchange ("Bond-loan") with a total borrowing limit of NOK 500 million. The first tranche of NOK 400 million was closed 14 February 2007 and has 5 years maturity, with floating interest (3 month NIBOR + 4.5%). Simultaneously SeaBird entered into a financial instrument which in effect converted the loan to a USD based loan with a principal repayment obligation of USD 65 million and a floating interest rate of LIBOR + 4.75%.

Furthermore, in Q1, SeaBird has drawn USD 2 million at a credit facility agreement related to the Aquila Explorer and Osprey Explorer. A total of USD 22 million was drawn under this facility as of 31 March 2007, while another USD 8 million will be drawn in June/July 2007. This credit facility has an interest rate of LIBOR + 1.5% and will be repaid over five years.

The Company views the new Bond-loan as a flexible financing for the substantial growth and investment program planned for the first half of 2007. SeaBird expects to incur significant capital expenditures for the previously discussed investments in 2007, where a substantial part is front-loaded to the first 9 months of the year. The net proceeds from the new bond loan will mainly be used to fund these investments. SeaBird expects some additional funding need in the peak investment period and has secured satisfactory commitments from banks for the remaining projected funding needs.

Outlook 2007

We still see a very strong demand within all segments of the seismic industry, with a substantial part of the available capacity already contracted. We expect the supply within our segments to increase slightly. However, the demand side is expected to more than absorb the additional capacity.

Aquila Explorer is in the completion phase and is expected to be ready for operation in a couple of weeks. Harrier Explorer and Munin Explorer are projected to be ready for operation during July 2007, while Hugin Explorer and Raven Explorer are expected to be ready for operation in Q4 2007. 500 new deep-water nodes are expected to be operational on the Hugin Explorer as soon as the vessel is ready for operation.

On the basis of the substantial increase of the fleet and the strengthening of the market rates, we expect a significant growth in both revenues and earnings in 2007, and in particular we expect a very strong second half of the year. Revenues are expected to be in the range of USD 150 million for the full year, while EBITDA is expected to be in the range of USD 80 million. Total capital expenditure is expected to be in the range of USD 130-140 million for the full year.

Sobre el batacazo de Seabird

Autor: iiiiidhiiiii	Carpeta: MIS FINANZAS Fecha: 13/04/07 09:53
Asunto: Para jesus sobre Seabird. (SBX.OL)

Recomendaciones: --

A finales de febrero, junto a los resultados, la compañia anuncia que el negocio de exploración 2D demanda más trabajo y destina un barco que está más preparado para trabajos más complejos a esta actividad. Según ellos "la demanda de exploración 2D nos sobrepasa". Es una empresa pequeña con 3 o 4 barcos pequeños, el equipamiento de esos barcos es lo que vale mucho. Esos barcos llevan un recubrimiento de asbestos que es un máterial similar al amianto, varias capas que aislan termicamente, sobre todo porque donde más se busca petróleo y se sospecha que aún pueda quedar es en las zonas más dificileses como en las costas de Groenlandia y Antartica. Lo que Seabird dice ahora es que ese barco, el HARRIER EXPLORER, está averiado y vuelve a puerto por un problema en el asbestos cuya gravedad no han podido valorar todabía (supongo que la tripulación se estaba congelando o algo parecido). Sea cual sea el precio de la reparación el barco estará parado y sin cumplir el contrato no se cobra por lo que, de momento, el primer y segundo trimestre los beneficios se reducen mucho con respecto a las previsiones sin menoscabo de que el contrato sigue en pie y la busqueda se llevara a cabo en cuando se termine la reparación que no se ha valorado. Yo he vuelto a comprar a estos precios porque la causa constituye un retraso y me parece que podría estar descontada. S2

Autor: laruku	Fecha: 13/04/07 10:42
Asunto: Es lo que pasa con estas empresas	Recomendaciones: 1

Las empresas de gran crecimiento pueden tener estos contratiempos. Es la grandeza y la miseria de las microempresas: si se les joroba una herramienta cara, como el barco, no tienen pasta para sustituirla y todo sufre un retraso. Una pequeña corrección es que el asbesto (singular) no es que se parezca al amianto: es amianto. Es un material ignífugo que se ha empleado en el fibrocemento (uralita) para fabricar cubiertas de edificaciones. Está superprohibido en todo el mundo desarrollado por los problemas sanitarios que produce. Me resulta raro que usen amianto en un barco. http://es.wikipedia.org/wiki/Asbesto S2.

Autor: cameratameiga	Fecha: 13/04/07 11:00
Asunto: RE:Para jesus sobre Seabird. (SBX.OL)	Recomendaciones: --

Hola. A mi también me sorprendió el palo que se llevó la acción bajando un 10% de golpe. Tampoco encontré información ni en la página de la empesa y ni en las de inversión, aunque finalmente he encontrado esto en rigzone.com, que cubre bastante bien el sector de prospección y plataformas de perforación (también llevo Transocean en cartera y tengo a Varco y otras en seguimiento): http://www.rigzone.com/news/article.asp?a_id=43367 "Through the conversion work on the Harrier Explorer, asbestos has been found on board the vessel, despite the fact that that she has an "Asbestos Free Certificate." This may delay the completion of the vessel until late July 2007. It is expected that this will increase the estimated" Comparto con Laruku la información sobre el amianto. Llevan años gastandose fortunas para eliminarlo de los edificios que durante los sesenta y setenta lo usaban para el aislamiento. Lo que tenía entendido es que el barco era de nueva adquisición, no se trataba de uno en producción y cumpliendo contrato, y lo estaban adaptando para su uso en prospección. Saludos

Autor: jesus80777	Fecha: 13/04/07 13:58
Asunto: RE:Para jesus sobre Seabird. (SBX.OL)	Recomendaciones: --

Muchas gracias iiiiidhiiiii por tu respuesta. Tambien a Laruku y CamerataMeiga. Interesante la web que aporta. Yo no voy a promediar a la baja, de momento, compre a 36, y todavía me dura el acojone. Si recupera los 33 si compraré. s2

Resultados de Seabird

Published: 07:47 27.02.2007 GMT+1 /HUGIN /Source: SeaBird Exploration Ltd. /OSE: SBX /ISIN: VGG7944D1087

SeaBird Exploration Group - Preliminary Results 2006 and Fourth Quarter

Q4 Highlights

• Consolidated revenues of USD 20.6 million, an increase of 165% compared to Q4 2005 and 104% compared to Q3 2006. Revenues for the full year of USD 46.3 million, up 111% from 2005.
• Q4 earnings hit by a total loss of USD 5 million related to Global Geo Services ("GGS").
• EBITDA of USD 5.3 million. Adjusted for the GGS loss of USD 5 million this was an increase of 213% compared to Q4 2005 and 265% compared to Q3 2006, mainly driven by the strengthening of the seismic markets, with substantially better rates. EBITDA for the full year of USD 14.6 million, up 139% from 2005 (adjusted for GGS loss).
• Hawk Explorer and Osprey Explorer started operations in Q4 2006, bringing the number of vessels in operation to five by the end of 2006.
• SeaBird continued the investments and has announced the addition of three more vessels to the fleet, bringing the total number of planned vessels in operation to ten by the end of 2007, compared to three by the end of Q3 2006.
• Main focus on planning for conversion of five remaining vessels for completion in 2007, with no indication of material overruns or delays so far.
• Substantial funding raised from the bond market and commercial debt through Q4 2006 and early 2007.

Outlook 2007

• We still see a very strong demand within all segments of the seismic industry, with a substantial part of the available capacity already contracted.
• We expect the supply within our segments to increase slightly. However, the demand side is expected to more than absorb the additional capacity.
• Aquila Explorer, Harrier Explorer and Munin Explorer projected to be ready for operation during Q2 2007, while Hugin Explorer and Raven Explorer are expected to be ready for operation in Q3 2007.
• 500 new deep water nodes expected to be operational on the Hugin Explorer by end Q3 2007/beginning of Q4 2007.
• On the basis of the substantial increase of the fleet and the strengthening of the market rates, we expect a significant growth in both revenues and earnings in 2007, and in particular we expect a very strong second half of the year. Revenues are expected to be in excess of USD 170 million for the full year, while EBITDA is expected to be in excess of USD 90 million.
• Total capital expenditures are expected to be in the range of USD 120 million for the full year.

Key Financial Performance Figures

The SeaBird Group reported consolidated revenues of USD 20.6 million in Q4 2006, an increase of 165% compared to Q4 2005 and 104% compared to Q3 2006. Revenues for the full year were USD 46.3 million, up 111% from 2005.

As previously disclosed, GGS presented substantial claims in arbitration proceedings against SeaBird. The main claim in the principal action was unlawful withdrawal of the lease of M/V Geo Mariner in 2005, amongst other things including (a) a claim for compensation in the amount of USD 4.3 million and (b) the right to a 50% ownership of the vessel and 50% of the future earnings of the vessel upon expiration of the charter agreement. Both these claims were upheld in SeaBird's favour.

The arbitration proceedings included a number of other claims and cross-claims, with various results. In total, SeaBird has charged a loss of around USD 5 million in Q4 2006 in the line other income, expenses (net), related to GGS (including the loss on investment in GGS shares (USD 1.1 million), write off of receivables refused in arbitration result and other GGS related items (USD 3.9 million). All substantial parts of this loss are non-cash.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") were USD 5.3 million for the quarter, an increase of 213% compared to Q4 2005 and 265% compared to Q3 2006 (adjusted for the GGS loss of USD 5 million in Q4 2006) The improvements are mainly driven by the strengthening of the seismic markets, with substantially better rates together with bringing Hawk Explorer and Osprey Explorer into operations in Q4 2006. EBITDA for the full year was USD 14.6 million, up 139% from 2005 (adjusted for GGS loss).

Earnings before interest and taxes ("EBIT") increased to USD 3.6 million in Q4 2006 an increase of 208% compared to Q4 2005 (adjusted for the GGS loss). EBIT for the full year were USD 10.7 million, up 128% from 2005 (adjusted for GGS loss).

Net Profit for Q4 2006 increased 189% over the comparable quarter in 2005 (adjusted for the GGS loss), to USD 3.2 million. Net Profit for the full year was USD 11.0 million, up 146% from 2005 (adjusted for GGS loss).

Operational highlights Q4

M/V Geo Mariner completed a survey with Indago Petroleum in the beginning of the quarter, before it moved on to a survey in Pakistan for Oil & Gas Development Company Limited (OGDCL) which was completed in January 2007.

Northern Explorer completed a long term contract for TGS-Nopec in the beginning of the quarter and continued with surveys in Sicily and Kenya. Osprey Explorer commenced operations in October on a six month charter with Veritas DGC (now CGGVeritas) with two six months renewal options, while Kondor Explorer continued operations for Veritas DGC under a charter expiring in May 2007, but with a six months renewal option.

Hawk Explorer finally commenced full operations at the end of November 2006 after some technical challenges post completion of conversion. She is on a two year charter with a one year renewal option for Fugro.

The group has set up their branch in Houston (USA). The core activity of the branch will be to oversee operations in Americas and also explore further business opportunities in the Gulf of Mexico and South America. Furthermore, SeaBird continues to strengthen the management and operating capacity across the group in line with the requirements of the fleet expansion.

Subsequent to year-end, SeaBird has acquired GeoBird Management Middle East FZ LLC (GeoBird) for USD 2 million. GeoBird is a maritime management company that has been responsible for the maritime operations of the SeaBird fleet of vessels since 2003. GeoBird's business is mainly related to the SeaBird maritime operations, but GeoBird is also providing maritime management services for other leading seismic companies.

Conversion projects

Seabird has decided to move the Harrier Explorer previously destined for SeaBed operations into the 2D/Source vessel market due to strong market demand. The vessel is expected to be ready for operations in April 2007 with a total cost of around USD 40 million. SeaBird has entered into a 4 year firm time-charter with a 2-year option with Petroleum Geo-Services ASA (PGS) as a source vessel. PGS has the option to use the vessel as a 2D vessel provided they cover the cost of additional seismic equipment and additional operating cost. The contract value for the firm period is approximately USD 58 million and is scheduled for commencement in May 2007.

M/V Aquila Explorer is under conversion to a source vessel at a Singapore yard. The vessel is expected to be ready for delivery in late March/early April 2007 with a total cost of around USD 35 million. The vessel is contracted to PGS for six months with two six month options.

Subsequent to year-end, SeaBird has entered into a 5 year firm bareboat charter with Økland Fiskebåtrederi AS (Økland) with 3 x 1 year options for the vessel Munin Explorer (ex. Newfoundland Otter) a 1990 built Norwegian trawler under conversion to a Seismic vessel. Økland will carry out the conversion to a Source/2D vessel at their cost with the exception of the cost of the Air Guns and the Streamer. Estimated capital expenditures for SeaBird are around USD 8 million. The contract value for the firm period is approximately USD 33 million and is scheduled for commencement in June 2007. SeaBird has an option to purchase the vessel during the firm 5 years period.

In October 2006 SeaBird Exploration agreed to acquire the M/V "Tasneem 2" from Syarikat Borcos Shipping Sdn Bhd for USD 13 million. The vessel is a new-built Anchor Handling Tug Supply (AHTS) vessel and will be converted into a shallow water 2D/3D vessel and re-named the "Raven Explorer". Total project cost including conversion and purchase price is estimated to approximately USD 36 mill. The vessel is expected to be operational in the third quarter of 2007.

In December 2006 SeaBird Exploration Limited and Siem Offshore Inc entered into a 5 year firm bareboat charter with 3 x 1 year options for the new-built vessel Siem Mariner, a DP2 platform supply vessel of MT 6000 mk II design. The contract value for the firm period is approximately USD 57 million and is scheduled for commencement in Q3 2007. SeaBird has an option to purchase the vessel at the expiry of the firm 5 years period. SeaBird will convert the vessel to a state of the art SeaBed seismic vessel. The vessel is expected to be operational in the third quarter of 2007. Furthermore, SeaBird is investing in 500 new deep water nodes for the SeaBed operations with projected delivery by the end of Q3 or beginning of Q4 2007. Total investments in SeaBed operations are estimated to be around USD 40 million in 2007.

Liquidity and Financing

At 31 December 2006, cash and cash equivalents amounted to USD 16.4 million, compared to USD 22.4 million at the end of the previous quarter. Net interest bearing debt was USD 68.2 million compared to USD 32.2 million at the end of the previous quarter.

In Q4 SeaBird exercised the drawdown of 2nd tranche of the bond loan at the Alternative Bond Market at the Oslo Stock Exchange ("Bond-loan"), equal to USD 7.7 mill (NOK 50 million) with an interest rate of NIBOR + 4.25%. Total Bond-loan at 31 December 2006 is around USD 32 million (NOK 200 million) with maturity in July 2009.

Furthermore, in Q4, SeaBird has completed the negotiations of part loan financing of the Osprey Explorer and the Aquila Explorer through a credit facility agreement with a commercial bank for a total amount of USD 30 million, to be repaid over five years. A total of USD 20 million was drawn under this facility as of 31 December 2006, while another USD 10 million will be drawn in the first half of 2007. This credit facility has an interest rate of LIBOR + 1.5%.

Subsequent to year-end, SeaBird decided to issue a new bond loan with a total borrowing limit of NOK 500 million. The new bond loan is listed on the Oslo Stock Exchange's Alternative Bond Market and has 5 years maturity, with floating interest (3 month NIBOR + 4.5%). The first tranche of NOK 400 million was closed 14 February 2007 and simultaneously SeaBird entered into a financial instrument which in effect converted the loan to a USD based loan with a principal repayment obligation of USD 65 million and a floating interest rate of LIBOR + 4.75%.

The Company views the new bond loan as a flexible financing for the substantial growth and investment program planned for the first half of 2007. SeaBird expects to incur significant capital expenditures for the previously discussed investments in 2007, where a substantial part is front-loaded to the first 6-8 months of the year. The net proceeds from the new bond loan will mainly be used to fund these investments. SeaBird expects some additional funding need in the peak investment period, and expects to be able to arrange this through additional commercial debt, financial lease arrangement or drawdown of the remaining part of the new Bond-loan.

The presentation and the full report with tables can be downloaded from the following links:

4th Quarter 2006 (PDF)

Q4 Investor presentation (PDF)

Petroleum Geo-Services says market stays strong after Q4 profit jump

OSLO, Feb 26 (Reuters) - Norwegian seismic surveyor Petroleum Geo-Services ASA (PGS) (PGS.OL: Quote, Profile , Research) posted a near seven-fold jump in fourth-quarter operating profits on Monday, narrowly missing analysts' average forecast, and said its market remained strong in 2007, but its shares fell.

PGS, which conducts seismic surveys for the oil and gas industry, reported operating profit of $117.5 million for October-December, up from $16.9 million in the same quarter a year earlier.

The result undershot an average forecast of $126 million in a Reuters survey of nine analysts but came within the range of estimates of from $106 million to $151 million.

"2006 was the best year ever for PGS," Petroleum Geo-Services ASA said in a statement.

"We expect a continued strong seismic market driven by increased exploration and production spending worldwide and the demand for more advanced seismic solutions," Chief Executive Svein Rennemo said in the statement.

Booming oil and gas prices have spurred exploration around the world, lifting the oilfield services industry, including providers of seismic data such as PGS.

PGS's report followed forecast-beating fourth-quarter results on Feb. 8 from smaller Norwegian rival TGS-Nopec (TGS.OL: Quote, Profile , Research) and last month from the world's biggest oilfield services group, Schlumberger (SLB.N: Quote, Profile , Research), whose Western Geco unit is a competitor.

PGS said it expected 2007 operating profit margins in its marine contract business to rise to around 50-55 percent from 41 percent in 2006.

The guidance for profitability in its key business was raised from early December when PGS told investors it expected its operating profit margin on marine contracts would rise to 50 percent in 2007.

The margin on marine seismic contract earnings before interest and tax (EBIT) rose to 49 percent in the fourth quarter, which PGS said was its best marine EBIT margin ever.

In its Onshore division, PGS said it expected 2007 revenues and operating profit to be about in line with 2006.

PGS said it expected multi-client revenues within its Marine division to be somewhat higher than in 2006, and said its saw multi-client investment in this unit at about $180-200 million.

The multi-client business consists of sales of data from a data library to various clients as opposed to seismic surveys carried out exclusively for individual customers.

PGS said in presentation material that its multi-client investments would roughly double in 2007, most of it coming in the first half.

"Increased multi-client investments further reinforce the tight contract market, Rennemo told a news conference. "The rise in 2006 has been substantial and it seems to continue."