Survey company Petroleum Geo Services said the downturn in oil and gas activity had led to a drop in earnings with little prospect of things improving in 2016.
The Norwegian-headquartered company, which revealed its third quarter results, saw its revenue cut to $225.7 million compared to $394.2 million for the same period last year.
The low oil price, reduced oil company spending and intense competition for work among seismic companies had led to a negative impact on pricing and utilisation. PGS expects market uncertainty and low earnings visibility to continue well into next year.
EBITDA was $115million compared to $181million during the same period last year. Based on the current operational projections and with reference to disclosed risk factors, PGS expects full year 2015 EBITDA to be approximately $500 million.
Cash flow from operations reduced to $71.3 million from $230.7 million in 2014.
PGS said its Ramform Explorer and Challenger are in process of being cold-stacked and Ramform Viking to be stacked end October
Chief executive Jon Erik Reinhardsen, said: “We continue to cut costs and reduce capital expenditures to optimize cash flow. With the cold-stacking of Ramform Viking and other initiatives taken in quarter three, our estimated cost reduction for 2015 is now increased to approximately $320 million.”