Polarcus warns on impairments

Middle East seismic shipowner facing hit on ship values after review by Norwegian watchdog.

Restructuring Middle East seismic shipowner Polarcus could be set for impairments in its 2015 results after a review by a Norwegian watchdog.

The Oslo-listed company said it had received a preliminary assessment of its 2014 financial statements from the financial supervisory authority Finanstilsynet.

It looked at the accounting of vessel and seismic equipment impairment and said that as the seismic market has weakened during the second half of 2014 and 2015, "additional attention is demanded from companies that use third party valuations during such periods", as Polarcus does.

Polarcus said: "This could lead to impairments in the company's 2015 financial results regardless of the outcome of the restructuring."

The owner this week agreed a refinancing package worth $587m as it seeks to secure its future.

This includes stretching loan deals and redrawing vessel charters.