ION Geophysical has reported a third quarter net loss of $16.6 million on revenues of $16.2 million, compared to a net loss $5.2 million on revenues of $22.7 million in the second quarter and a net loss of $3.7 million on revenues of $53.2 million...
ION Geophysical has reported a third quarter net loss of $16.6 million on revenues of $16.2 million, compared to a net loss $5.2 million on revenues of $22.7 million in the second quarter and a net loss of $3.7 million on revenues of $53.2 million in Q3 2019.
Year-to-date net loss was $24.1 million on revenues of $95.4 million compared to a net loss of $33.7 million on revenues of $132 million in the first nine months of 2019.
At quarter close, the company’s total liquidity of $59.4 million consisted of $51.1 million of cash (including net revolver borrowings of $22.5 million) and $8.3 million of remaining available borrowing capacity.
At September 30, 2020, backlog was $17.7 million or 77% higher compared to backlog at June 30, 2020.
Chris Usher, ION’s president and chief executive officer, said: ‘Despite the macroeconomic backdrop, we have made significant progress executing our strategy. Backlog increased 77% sequentially, reversing several consecutive quarters of steady decline due to our strategic shift to enter the 3D new acquisition multi-client market. We successfully acquired the initial phase of our Mid North Sea High 3D multi-client programme and built backlog for the significantly larger second phase next summer.
‘Although we expect the market will remain challenging, we see indications for improving offshore E&P industry dynamics and continue to anticipate significant growth in digitalization over the next decade.’
E&P Technology & Services segment revenues were $10.1 million for the third quarter 2020 compared to $15.2 million for the second quarter of 2020 and $40.2 million for third quarter 2019. Multi-client revenues were $6.3 million, a decrease of 81% from third quarter 2019, primarily due to the lower volume of ION’s global data library sales, as well as a decline in new venture revenues due to acquisition completion of a large new programme in the prior period. Imaging and Reservoir Services revenues were $3.8 million, a decrease of 46% from third quarter 2019 due to lower proprietary tender activity.
Operations Optimization segment revenues were $6.1 million for the third quarter 2020 compared to $7.5 million for the second quarter of 2020 and $13 million for third quarter of 2019. Optimization Software & Services net revenues were $3 million, a 57% decrease from third quarter 2019 due to reduced seismic activity and associated services demand resulting from Covid-19. Devices net revenues were $3.1 million, a 49% decrease from third quarter 2019 due to lower sales of towed streamer equipment spares and repairs.
Consolidated operating expenses were $12.5 million, a 42% decrease from $21.4 million in the third quarter 2019.
