Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. CASPIAN SERVICES INC (1093430) 10-Q published on Aug 15, 2016 at 3:05 pm
Reporting Period: Jun 29, 2016
Third fiscal quarter 2016 revenue from vessel operations of $4,750 was 112% higher than the third fiscal quarter 2015, as more vessels were utilized during the 2016 period. We believe this increase in utilization was principally due to efforts by the operators of the Kashagan field to complete works to allow it to recommence production at the Kashagan field by the end of 2016 or early 2017. We believe this increase in utilization is
During the three months ended June 30, 2016, vessel operating costs of $1,633 were 9% higher than during the three months ended June 30, 2015, primarily as a result of the increase in vessel utilization. As a result of the improved profit margins, we had net income from vessel operations in the third fiscal quarter 2016 of $1,758 compared to net income of $147 in the third fiscal quarter of 2015. As noted above, we view this as a short-term event due to increased efforts to recommence commercial production at the Kashagan field and do not believe it signals a trend toward higher vessel utilization in upcoming periods.
Revenue from geophysical services decreased almost 100% from $2,842 during the period ended June 30, 2015, to $12 during the period ended June 30, 2016, and cost of geophysical service revenue decreased 77% to $600 during the nine months ended June 30, 2016. While we completed two successful projects during the nine months ended June 30, 2015, we were engaged to undertake only one small one-time project during the nine months ended June 30, 2016. As a result of the ongoing weakness in world oil prices and the depressed local credit market, we expect lower demand for our geophysical services until oil prices rebound, materially and the local credit market improves substantially.
During the nine months ended June 30, 2016, revenue from vessel operations of $10,367 was 27% more than revenue during the nine months ended June 30, 2015. As noted above, we believe this increase in vessel revenue is the result of a short-term increase in activity to recommence commercial production at the Kashagan field. We do not view this as a trend toward higher demand for our vessel fleet. We expect vessel revenues will be flat or lower throughout the remainder of fiscal 2016 compared to the same period of fiscal 2015, and we do not expect significant growth in demand for our vessels in the Kazakh sector of the Caspian Sea, if at all, until commencement of the second phase of the Kashagan oil field project and until world oil prices rebound materially. Therefore, we continue to seek opportunities to utilize our vessel fleet outside of Kazakhstan, in the Turkmen and Russian sectors of the Caspian Sea.
Revenue from geophysical services decreased nearly 100% from $2,842 during the nine months ended June 30, 2015, to $12 during nine months ended June 30, 2016. During the nine months ended June 30, 2015, we were able to complete two successful projects. By comparison, during the same period of fiscal 2016, we have completed only one small one-time project. As a result of the decreased activity, cost of geophysical service revenues decreased by 77% to $600. Even though we performed no significant projects during the nine months ended June 30, 2016, we continue to incur certain fixed costs to maintain our geophysical service assets.