RXT - Promising outlook after weak first quarter
Reservoir Exploration Technology ASA (RXT) today announced unaudited results for the first quarter 2007.
- As projected in our Q4 2006 report we have had a weaker quarter. The results are in line with our expectations and factored into the company's projections for the year, CEO of RXT, Michael Scott, comments.
The reasons for the sequentially weaker quarter is mobilising costs for RXT's third operation, RXT3, in addition to scheduled maintenance and guarantee repair work on RXT2 in preparation for West Africa. During the quarter RXT1 finalised programs originally tendered in 2005, at more "introductory rates".
- Our three operations have secured work for a long time now. A solid backlog of programs has been built up at rates consistent with the annualised projection per crew. The demand for our services is high and growing. We will continue to build capacity to meet the promising market, Scott continues.
EBITDA for the quarter was minus USD 3.5 million, compared to 5 million in Q4 2006 and minus 3.8 million in Q1 2006. Revenues were USD 8.4 million compared to 19.3 million in Q4 2006 and 3.2 million in Q1 2006. Net result was minus USD 12 million compared to 0.2 million in Q4 2006 and minus 7.9 million in Q1 2006.
Net result was negatively affected by RXT convertible bond by USD 4.1 million. This is mainly related to the increase in RXT stock price, and has no cash effect.
For further information, please contact RXT CFO Odd Erik Rudshaug. Cell:+ 47 41612858
About RXT: Reservoir Exploration Technology ASA (RXT) is a marine geophysical company specializing in multi component seismic sea-floor acquisition. Multi component seismic solves several imaging challenges that cannot be resolved with towed streamer seismic. This results in improved oil recovery from existing fields as well as better quality data for exploration. Seafloor cables are also the solution where towed streamers are impractical due to, for example, a high density of platforms and/ or shallow water. The Company has offices in Oslo, London and Houston. RXT is listed on the stock exchange in Norway (OSE ticker: RXT).