Odyssey Marine Exploration Inc (NASDAQ:OMEX), which is one of the deep-ocean exploration pioneers has reported its results for the year ended December 31, 2017. The company also reported an update on current projects.
Don Diego Projects
On March 21, 2018, the Superior Court of the Federal Court of Administrative Justice in Mexico, ruled in favor of the company’s subsidiary, Exploraciones Oceánicas. The court nullified the decision in which Exploraciones Oceánicas was denied an environmental permit for mining of phosphate sand from the “Don Diego” project.
Odyssey has a 53.88% interest in ExO. To advance to the next level of development of the deposit, the company plus its subsidiaries require the approval of the environmental permit application. The permit is expected to be out in a few weeks’ time following the ruling.
After completion, the “Don Diego” project will deliver significant social and economic benefits to Mexico in the form of lowered fertilizer pricing, job creation, generation of tax revenues, increased crop yields and financing programs which will be aimed at protecting and enhancing the marine environment.
2017 Financial Results
During the year, the company reported a $3.4 million decrease in revenue i as compared to 2016. Revenue came exclusively from the company’s shipwreck explorations for Magellan whereas in 2016 sources of revenue included an executed marine survey services contract plus shipwreck exploration services for Magellan.
The company reported a drop in marketing, general and administrative expenses from the $7.9 million that was reported in 2016 to $6.2 million reported in 2017. The $1.8 million drop was mainly as a result of due the $1.9 million decrease related to personnel expenses which resulted from regular, incentive as well as share-based compensation. The decrease was also as a result of the $0.4 million increase in admiralty legal support.
During the year, expenses from operations and research amounted to $3.4 million as compared to $8.3 million that was reported in 2016. The difference of $4.8 million was mainly as a result of the $4.3 million decrease in marine services costs. There was also a $0.5 million decrease in general overhead which include professional services, travel, depreciation and insurance expenses.