Norway-based geoscience firm Dolphin Geophysical has filed for bankruptcy just days after warning it had struggled to restructure its debt and capital structure.
The firm, whose shares halved last Thursday after it warned it could have to file for insolvency, posted a US$31.1 million loss in Q3 2015, amid "very weak market fundamentals, fierce competition and low seismic market rates."
Polarcus, another Norwegian geoscience firm operating seismic vessels, said 7 December it was looking to "address its long-term financing," having already taken "a number of measures to improve its financial situation." It is in talks with banks, lease providers and certain bond holders, but said it was confident new agreements could be reached. Polarcus has $68 million in cash and a $150 million backlog.
Dolphin says in spite of talks with employees/staff, banks, bondholders, suppliers and customers, "the fact that the market has further deteriorated and that the expected timeline for an uplift in the market conditions has been further extended, the board of directors of the company has unanimously come to the conclusion that there is no longer a basis for continued operations, and subsequently the assumption of a going concern cannot be upheld."
Dolphin had operated a fleet of 2D and 3D seismic vessels, based on charter agreements. Its newest vessel was the Polar Empress owned by GC Rieber and brought into operation this year.
GC Rieber has three vessels on long-term contract to Dolphin. GC Rieber this morning said it would immediately initiate a process to evaluate alternatives for employment for these vessels. The firm said: "GC Rieber Shipping believes its high quality and efficient vessels will attract interest even in a further consolidated market."
Earlier this year, vessel charterer Sanco, which had two vessels on charter to Dolphin, terminated the agreements and chartered the vessels to PGS instead.
Tim Wells, chairman, and Atle Jacobsen, CEO, said in a joint statement: “Due to the continued deterioration in the oil service market, Dolphin has had to make the decision to file for bankruptcy. It is a difficult decision, but in light of the unpredictability of the oil price and subsequent spending cuts of our customers, it has become impossible to have the visibility needed to continue our business. We have worked diligently since 2011 to build Dolphin into a company that would benefit all of our stakeholders- shareholders, lenders, suppliers, customers and our employees. We would like to express our thanks to all who have contributed to Dolphin over the last five years.”
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Image: The Polar Duke, which had been on charter to Dolphin. Now available for prompt charter.
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