(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 of Magseis
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 of USD 44.7 million and gross profit of USD 18.9 million (gross margin
* EBITDA of USD 9.9 million
* EBIT loss and net loss after tax of USD 2.9 million
* Order backlog of USD 151 million, of which USD 82 million for delivery in 2020
* Cash balance of USD 56.6 million - net cash position of USD 23.9 million
Financial highlights for the first half:
* Revenue of USD 98.0 million with gross margin of 32%
* EBITDA of USD 15.8 million
* Operating loss of USD 11.0 million and net loss after tax of USD 14.9 million
* Operating cash inflow of USD 15.6 million and total increase in our cash
balance of USD 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 of Magseis 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 in Norway 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 if North 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 in Asia 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 CEO Carel
Hooijkaas and CFO Mark Ivin at 10:00 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:
US: +1 646-787-0157
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
at Magseis Fairfield (www.magseisfairfield.com) and Oslo Stock Exchange
(www.newsweb.com). The webcast will be made available at Magseis Fairfield's
website after completion.
For further information, please contact:
Carel Hooijkaas, CEO
Tel: +47 480 49 277
Mark Ivin, CFO
Tel: +47 948 88 606
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 Oslo Stock Exchange