Magseis Fairfield reported revenue of USD 75.2 million and an EBITDA of USD 3.1 million in the first quarter 2022. The quarter was driven by seasonally lower activity, and weak results from Gulf of Mexico project which was delayed due to bad weather and environmental conditions.
Highlights for the third quarter:
- Revenue of USD 75.2 million, gross profit of USD 8.4 million, and EBITDA of USD 3.1 million
- Gross margin of 11%, affected by weather and environmental conditions on the ZXPLR 1 crew project in the Gulf of Mexico
- Operating loss of USD 9.0 million and net loss after tax of USD 12.2 million
- Acquired node-on-a-rope handling systems to expand capacity and consolidate the market
- Cash holding of USD 15.7 million at end of March - strengthened through increase of RCF after the end of the quarter
- Order backlog of USD 257 million with three new contract wins in the quarter
- One contract extended after the end of the quarter
- Forecasting an OBN market approaching a value of USD 1 billion in 2023
'The market continues to improve, and we will operate at close to full capacity in the second quarter. The positive market outlook has been reinforced with the increasing focus on energy security, and we see higher margins and generally better terms and conditions for the projects in the market. We believe our market will approach a value of around USD 1 billion in 2023,' says CEO Carel Hooijkaas in Magseis Fairfield.
The Q1 results were heavily impacted by the weather and environmental conditions on the ZXPLR1 crew in the Gulf of Mexico. This contract was signed in early 2021 during very different market conditions. With the current tightening market conditions, the company is seeking to improve terms and conditions as well as pricing. Excluding the ZXPLR1 crew the gross margin was 23%.
The company sees 25% market growth in 2022, with about 70% of the visible projects awarded so far. Key opportunities remain in Europe, the Americas and Asia. Looking ahead, the company is forecasting an OBN market approaching a value of USD 1 billion in 2023, with Magseis Fairfield uniquely positioned to offer OBN solutions in this growth market.
To support higher activity and the mobilization of all crews, the company has strengthened its liquidity position after the end of the quarter. The revolving credit facility with DNB has been increased by USD 15 million through to the end of the third quarter, and the underlying USD 30 million RCF has been extended with one year to December 2024.