Production on the Company's current multi-client project in Brazil has been negatively impacted by extraordinary operating conditions, including impacts from poor weather conditions and extreme barnacle growth, which will extend the duration of the project into February 2017. The slower production rate on the project will negatively affect the recognition of committed prefunding in Q4 2016.
Additionally, during Q4 2016 the company has experienced standby time on certain vessels due to unforeseen permit delays on client projects. This will have a negative impact on the company's utilisation and revenue generation in the quarter. The company's Q4 utilisation will be announced in the first week of January 2017.
"High market competition is expected to continue in the near term resulting from the over-supply of vessel capacity relative to client tender volumes", stated Rod Starr, Polarcus CEO. "In spite of the highly competitive market, we expect to secure additional awards before year end as a result of our offering of industry leading assets and intelligent project designs."
