Significantly improves competitiveness
Dolphin announces an improved competitiveness through a significant reduction in the cost base and strengthened liquidity. This has been achieved by the following three elements:
- Improved terms on the two term loans
- Improved terms on the overall fleet, represented by early redelivery of the Polar Duke and reduced time charter rates
- Secured USD 15 million short-term bank facility
The banks have agreed to a 9 months repayment holiday on the two term loans which represent USD 5.5 million per quarter in improved liquidity for the next three quarters. The financial covenants are being reviewed including possible adjustments for Q3 2015. Remaining balances on the two term loans are USD 47 million and USD 15 million per Q3 2015.
Dolphin has entered into agreements for early re-delivery of Polar Duke and a reduction in time charter rates. The combined effect and associated cost reductions result in a revised financial guiding on the cash OPEX per day for a Dolphin high-end 3D vessel of USD 94,000 – 112,000. In return, the ship owners are granted an extension of the firm TC period of 12 months for the vessels involved. In addition, a rolling credit facility totalling USD 8.5 million has been granted to Dolphin by the two ship owners during the 9 months repayment holiday.
The USD 15 million short-term bank facility has been granted for Dolphin to meet its increasing accounts receivables, some of which have payment terms in excess of 60 days.
With reference to the plan of initiatives presented at the Pareto Conference on 3 September, Dolphin is on track with the execution of the plan that will significantly improve the Group’s competitiveness and liquidity during these tough market conditions.
Atle Jacobsen, CEO, commented; "I am pleased to be able to announce that this significant milestone is achieved, with all elements contributing to improved liquidity. The support shown by major stakeholders demonstrated throughout Dolphin’s growth has always been critical to Dolphin’s success; their continued support is now equally important in ensuring Dolphin’s resilience to weathering the current stormy market conditions.”
This information is subject of the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act.
For further information, please contact:
Atle Jacobsen, CEO
Mobile: +47 97 71 53 36
E-mail: atle.jacobsen@dolphingeo.com
Dolphin Group ASA is the Parent company of Dolphin Geophysical AS, a global full-range, asset light supplier of marine Geophysical services. Dolphin operates a fleet of new generation, high-capacity seismic vessels and offers contract seismic surveys, Multi-Client projects and processing services on a worldwide basis.
Dolphin Group ASA is listed at Oslo Stock Exchange (OSE ticker: DOLP).