OSLO (Reuters) - Seismic surveyor Spectrum (SPU.OL) expects the fourth quarter to be significantly stronger than the third as oil companies will spend more cash on seismic data, its chief executive told Reuters after reporting a drop in third-quarter sales on Friday.
Cost cutting has enabled oil companies to generate cash at oil prices around 50 dollars per barrel, which in turn can be reinvested in exploration.
“We expect a fourth quarter that will be significantly better than the third ... We have a number of projects that we are about to finish and that will be available to the oil companies in the quarter,” Spectrum CEO Rune Eng said.
Seismic firms, which scan the seabed for underground oil and gas deposits, are among the first to see the effects of any change in spending by oil companies.
“I think the next three years will be significantly different from the last three, which were influenced by cost cuts and falling oil price. The industry has been on a diet and oil companies are cash positive again, so there are good reasons to believe we will see increased activity,” Eng said.
In the third quarter, revenues fell to 17 million Norwegian crowns ($2.15 million) from 20.5 million a year ago, while its operating loss widened to 5.8 million from 2.5 million. At 1200 GMT, the firm’s shares were unchanged for the day in Oslo.
Reporting by Henrik Stolen, editing by Terje Solsvik