SAExploration Holdings, Inc. (NASDAQ:SAEX, OTCBB:SAEXW)(“SAE” or “the Company”)
today announced financial results for the third quarter (“Q3”) and nine months ended September 30, 2013, and the receipt of new project awards in Alaska and South America with an aggregate value of approximately $152 million.
Brian Beatty, CEO and President of SAE, commented, “As previously announced, we experienced significant operational adversity during Q3 2013, including mechanical issues on a contracted vessel in Malaysia, project initiation delays relating to the environmental permitting process on two contracts in South America, and the further delay of a previously paused 3D project in Alaska. This confluence of unusual and unprecedented circumstances significantly impacted our Q3 2013 results, with the situation in Malaysia having a considerable effect on our profits due to the fixed-price nature of that particular contract. I am grateful for the quick and professional response of our personnel, which allowed the projects in Malaysia, Colombia, and Bolivia to resume and move towards completion. The situation in Alaska was disappointing and unforeseen. Due to the lack of clarity on if and when the project might resume, we have removed the remaining expected revenue from this particular contract from our internal projections and backlog, and have re-focused resources in the region on obtaining new contracts, such as the two new Alaska projects announced today.”
Mr. Beatty continued, “We believe that the issues that impacted our results were confined to Q3 2013. Our operations have normalized, and we expect to return to profitability in the fourth quarter (“Q4”) of 2013. We remain confident in the fundamentals underlying our business and the long-term prospects of our industry. Our expanding global client base will continue to benefit from SAE’s expertise and experience with operating in logistically complex and challenging areas, an industry-leading QHSE record, state-of-the-art equipment, and expert knowledge in creating infrastructure, such as roads and bridges, transporting heavy equipment, providing accommodations and lodging, and in establishing community relations.”