Thalassa outlook stays uncertain

(MENAFN- ProactiveInvestors) Oil exploration contractor Thalassa Holdings (LON:THAL) said its outlook for 2015 remains uncertain due to export restrictions against Russia and continued pressure on the price of oil.

Last month the firm said revenue would fall materially below market expectations for the year as low oil prices contract delays and sanctions on Russia had pushed revenue expected this year into 2015.

At the time Thalassa said it had been working on a major contract in the Russian Arctic which would have had a major impact on revenue and profit in the current and next financial years.

But the company said it had been unable to secure a conclusive legal opinion from its US or UK lawyers on whether the contract would breach any of the sanctions placed on Russia over its involvement in the Ukraine crisis.

The business has two operating subsidiaries: WGP Group focused on marine geophysical services in exploration and surveying and Autonomous Robotics (previously GO Science).

The 23rd Norwegian licence round is now expected to conclude in 2015 and Thalassa said that accordingly potential multi-client data sales relating to that round which could generate significant revenue are now expected to take place in 2015.

“The company continues to have a strong balance sheet with current net free cash of approximately US$15mln.”