Magseis Fairfield reported revenue of USD 99.3 million and an EBITDA of USD 8.2 million in the third quarter of 2022, including USD 7.2 million in one-off costs relating to change of control. Acquisition activity was high throughout the quarter with July reaching an all-time high. The North Sea season was successfully completed for all crews working in the region, and the company also completed the XHR test on Sleipner CCS. However, technical downtime on a node handler and delayed start-up of a project negatively impacted financials.
Highlights for the third quarter:
• Revenue of USD 99.3 million and gross margin of 21%
• EBITDA of USD 8.2 million with margin of 8% including USD 7.2 million in one-off costs relating to change of control
• Operating loss of USD 7.5 million and net loss after tax of USD 8.8 million
• Cash balance of USD 31.9 million
• Maintained the USD 15 million temporary increase of the RCF until the end of first quarter 2023
• Backlog of USD 306 million at end of Q3, with ~USD 64 million for delivery in 2022
Update on TGS ASA transaction:
• As part of the voluntary exchange offer for all shares in Magseis Fairfield ASA by TGS, the offeror amended the minimum acceptance condition to 66.67%
• TGS executed the settlement of the Offer and holds a total of shares representing approximately 75.40%, in addition TGS holds 18.24m warrants in Magseis Fairfield
• TGS has announced that conditions for completion of the Offer have been fulfilled and has called for an Extraordinary General Meeting
During the quarter, Magseis Fairfield was awarded the largest acquisition contract ever awarded to the company. The contract is for ExxonMobil in Guyana, lasting for at least 14 months using ZXPLR technology. The project has commenced in Q4 2022.
“The high activity in the quarter reflects the improved market. Magseis Fairfield is demonstrating leadership as the clear market leader in the OBN market and remains focused on improving contract terms and conditions to balance risk in the current market.” says CEO Carel Hooijkaas in Magseis Fairfield.
Magseis Fairfield continues to forecast a market which will exceed USD 1 billion in 2023. This is supported by the increased tendering activity for 2023, and the fact that contracts worth approximately 800 million dollars have already been awarded for execution in 2023.
