ION Geophysical has reported a 2019 fourth quarter net loss of -$14.5 million on revenues of $42.7 million compared with a fourth quarter 2018 net loss of -$19.3 million on revenues of $74.6 million one year ago.
ION Geophysical has reported a 2019 fourth quarter net loss of -$14.5 million on revenues of $42.7 million compared with a fourth quarter 2018 net loss of -$19.3 million on revenues of $74.6 million one year ago.
Excluding special items, the company reported a Q4 2019 adjusted net loss of -$5.7 million compared with an adjusted net income of $15.3 million in the fourth quarter 2018.
For the full year 2019, ION reported revenues of $174.7 million, a 3% decrease compared to revenues of $180 million one year ago. ION’s full year 2019 net loss was -$48.2 million compared to a net loss of -$71.2 million in 2018.
Chris Usher, ION president and chief executive officer, said: ‘Our fourth quarter financial results were quite disappointing, primarily because we were not able to launch multiple new acquisition multi-client programmes and close several data library deals in our pipeline. Tighter E&P budgetary controls and lower oil prices subdued year-end spending such that several material deals, in the order of tens of millions of dollars, were not completed prior to year-end.
‘We restructured our E&P Technology & Services segment to reflect our shift in multi-client strategy to include new 3D acquisition, and implemented a significant cost reduction programme. We reorganized our new ventures sales organization to accelerate our entry into the 3D new acquisition multi-client market, bringing our projects closer to the reservoir, where capital investment tends to be more consistent and programmes have larger-scale revenue and earnings potential. ION has rapidly grown our 3D library from almost nothing to 350,000 km2 of seamlessly integrated reimaged data over the last few years, which has led to a pipeline of opportunities for new 3D towed streamer or seabed programmes we have not seen before.
‘Offshore is picking up and we see material activity among our client base to rebalance portfolios and maximize value, which drives related data sales opportunities to fill customer knowledge gaps.’
Net cash flows from operations were $14.8 million during the fourth quarter of 2019. At 31 December, 2019, the company had total liquidity of $72.4 million, consisting of $33.1 million of cash on hand, and $39.3 million of available borrowing capacity.
Fourth quarter E&P Technology & Services revenue of $29.7 million was down on £60.4 million in Q4 2018. Multi-client revenues were $23.6 million, a decrease of 57%. Imaging Services revenues were $6.1 million, a 14% increase. Imaging Services’ backlog is more than double that of one year ago.
Operations Optimization revenues were $13 million, down from $14.1 million in Q4 2018. Software & Services revenues were $5.5 million, a 9% decline from the fourth quarter 2018. Devices revenues were $7.5 million, an 8% decline.
Operating expenses were $15.1 million, compared to $54.5 million in the fourth quarter 2018.
For the full year of 2019, E&P Technology & Services revenue was $125.6 million compared to $136.5 million in 2018. Multi-client revenues were $103 million, a decrease of 12%. Imaging Services revenues were $22.5 million, up 14%.
Full year Operations Optimization revenues were $49.1 million compared to $43.5 million in 2018. Software & Services revenues were $23.1 million, up 10% from 2018. Devices revenues were $26 million, up 16% on 2018.
Consolidated operating expenses were $84.5 million, compared to $113.9 million in 2018.
