MAGSEIS FAIRFIELD ASA (Oslo ,25 August 2020 )Magseis Fairfield delivered strong operational and financial performance in the second quarter 2020, with all crews performing according to plan despite challenging logistics during the pandemic. The priorities going forward remain to ensure the safety and welfare ofMagseis Fairfield's employees, continue to win new contracts, and to preserve the cash position in order to secure a good entry into 2021. Financial highlights for the second quarter: * Revenue ofUSD 44.7 million and gross profit ofUSD 18.9 million (gross margin of 42%) * EBITDA ofUSD 9.9 million * EBIT loss and net loss after tax ofUSD 2.9 million * Order backlog ofUSD 151 million , of whichUSD 82 million for delivery in 2020 * Cash balance ofUSD 56.6 million - net cash position ofUSD 23.9 million Financial highlights for the first half: * Revenue ofUSD 98.0 million with gross margin of 32% * EBITDA ofUSD 15.8 million * Operating loss ofUSD 11.0 million and net loss after tax ofUSD 14.9 million * Operating cash inflow ofUSD 15.6 million and total increase in our cash balance ofUSD 3.1 million "We have worked hard to ensure strong execution on the acquisition and reservoir monitoring projects as well as the ongoing multi-client survey, while at the same time taken decisive action to adjust our cash spending to the current market. This focus is showing results through improved margins and a financial position that maintains our flexibility for the future. At the same time, we have been able to win new contracts in a difficult market, and look forward to working with our clients to secure additional work for 2021 and beyond", says Carel Hooijkaas, CEO ofMagseis Fairfield . The ZXPLR1 crew in the GoM continued to perform well in the second quarter and has full backlog coverage for the remainder of the year, and the Reservoir Monitoring and Source crews inNorway also delivered solid performance in the quarter. The crew on the Cornerstone multi-client project performed well, and the project will continue into the fourth quarter ifNorth Sea weather conditions allows. In addition to project execution,Magseis Fairfield also built and delivered the second and last batch of the Z100-nodes for an existing client inAsia in the second quarter. The improved results reflect improved operational execution and strengthened cost control throughout the business, which have been the crucial elements in the strategic turnaround and reorganization of the company. To adapt to a new market environment, several initiatives are being implemented to rightsize the organization and preserve cash. The company is on track to reduce cash costs by approximately 75% from 2019 levels. "Looking forward, we see that our clients have cut capex and reduced or postponed investment plans to preserve cash. Our clients' focus is shifting away from exploration to cash and value generation from existing resources, and we believe we are well positioned to benefit from this shift through delivery of cost-efficient high-quality OBN data", says Hooijkaas. Second quarter conference call information: An earnings conference call followed by Q&A will be hosted by CEOCarel Hooijkaas and CFOMark Ivin at10:00 CEST . To dial in to the conference call where the second quarter results and Q&A will be hosted, please dial in to one of the following numbers: NO: +47-21-956342 US: +1 646-787-0157UK : +44-203-7696819 Participant pin code: 267572 You can also follow the second quarter results via webcast with supporting slides, available on this link: https://magseis.eventcdn.net/2020q2/ Please note, if you follow the webcast via the above URL, you will unfortunately experience a 30 second delay compared to the main conference call. The second quarter and first half 2020 report and presentation will be available atMagseis Fairfield (www.magseisfairfield.com) andOslo Stock Exchange (www.newsweb.com). The webcast will be made available atMagseis Fairfield's website after completion. --- For further information, please contact: Carel Hooijkaas, CEO Tel: +47 480 49 277 Email: carel.hooijkaas@magseisfairfield.comMark Ivin , CFO Tel: +47 948 88 606 Email: mark.ivin@magseisfairfield.com ---Magseis Fairfield is the global leading provider of ocean bottom seismic (OBS) technology and data acquisition projects. The company has a flexible business model with full scale node operations, as well as lease and sale models. The Marine Autonomous Seismic System "MASS" nodes and the range of Z-nodes combined with handling systems and source technology enables market leading deployment speed and highly cost-efficient acquisition of data with exceptional quality. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Click here for more information
© Oslo Bors ASA, source
