Magseis Fairfield's top priority during the current coronavirus pandemic has been the safety and welfare of its employees, safe and timely execution of ongoing operations, and strengthening of financial liquidity and flexibility to safeguard business continuity. No employees have so far been infected by the virus and neither the operational nor financial performance was materially impacted in the first quarter.
Financial highlights for the first quarter:
- Revenue of USD 53.3 million and gross profit of USD 12.3 million (23%)
- EBITDA of USD 5.8 million
- EBIT loss of USD 8.1 million and net loss after tax of USD 12.0 million
- Order backlog of USD 169 million, of which USD 125 million for delivery in 2020
Total increase in cash and cash equivalents of USD 12.3m resulting in cash position of USD 65.8 million
'We have taken decisive action to adjust to a new market reality as a result of the coronavirus pandemic and lower oil prices. We entered this market situation as a stronger company after restructuring and refinancing over the past seven months, and have in April initiated further cost and capex reductions to align our cash spending with a low case revenue scenario based on the secured backlog', says CEO Carel Hooijkaas in Magseis Fairfield.
As announced on 7 April, the company expects SG&A costs of USD 25 million and capital expenditure of USD 15 million in 2020. This excludes investments into the multi-client library through the MC survey which started in the North Sea towards the end of the first quarter.
During the first quarter, the company announced a sale of Z100-nodes to an existing client in Asia and a deepwater acquisition project in Mexico that will be executed towards the end of the year. The ZXPLR crew in the Gulf of Mexico has shown excellent performance, and the contract in Mexico extends the backlog for that crew through 2020.
Going forward, the company sees its clients rethinking investment plans to preserve cash and shifting their focus to already explored fields rather than exploration for new reserves. Clients are concentrating their efforts on a smaller number of projects which will deliver near-term cash and value, and Magseis Fairfield believes it is uniquely positioned to address this new focus area.
'Looking ahead, we have a good cash starting position, prudent cost management, and an asset light business model. Combined with our people and technology this differentiates us and will allow us to successfully navigate this new market environment. We will continue our tireless efforts to be the trusted partner to make Ocean Bottom Nodes the technology of choice for seismic data,' ends Hooijkaas.