ION Geophysical has reported a net loss of £7.2 million on revenues of $14 million in the first quarter of 2014, compared with a net loss of $2.3 million on revenues of $27.3 million in the fourth quarter of 2020.
ION Geophysical has reported a net loss of £7.2 million on revenues of $14 million in the first quarter of 2014, compared with a net loss of $2.3 million on revenues of $27.3 million in the fourth quarter of 2020. Excluding special items in both periods, the company reported an adjusted net loss of $14.9 million compared to an adjusted net income of $4.7 million in the first quarter 2020. The company’s liquidity was $39.5 million.
‘We closed significantly lower multi-client data sales than expected during the first quarter, as many of our clients were restructuring their organizations and finalizing capital budgets later than usual. This delayed commercial discussions. Last year, we had an exception to that pattern with strong first quarter results driven by an unusually large 2019 year-end deal that ultimately closed in March of 2020. Importantly, backlog grew for the third consecutive quarter, driven by our strategic decision to participate in the 3D new acquisition multi-client market. We expect to recognize the majority of backlog as revenue during the second and third quarters as the much larger phase of our Mid North Sea High programme progresses this summer. Our team has cultivated a robust pipeline of potential 3D programme opportunities, such as the exclusive agreement we announced offshore Kenya.
‘We have extended our bond maturity to 2025 with a lower interest rate. Net proceeds from both the Registered Direct Offering and Rights Offering injected approximately $24 million of liquidity. While we expect the market to remain challenging in the near-term, there have been a number of positive developments, which point to improving market conditions in the back half of the year. Brent crude oil prices, which play an integral role in the trajectory of customers' offshore capital spending programmes, have rebounded to pre-pandemic levels.’
E&P Technology & Services segment revenues were $7.2 million for the first quarter 2021, compared to $19.9 million for the fourth quarter 2020 and $46.5 million for first quarter 2020. Within the E&P Technology & Services segment, multi-client revenues were $3.6 million, a decrease of 91% from first quarter 2020, primarily due to lower data library sales. Imaging and Reservoir Services revenues were $3.7 million, a decrease of 26% from first quarter 2020, due to lower proprietary tender activity.
Operations Optimization segment revenues were $6.8 million for the first quarter 2021 compared to $7.4 million for the fourth quarter 2020 and $9.9 million for first quarter 2020. Optimization Software & Services revenues were $2.8 million, a 36% decline from first quarter 2020 due to reduced seismic activity. Devices revenues were $4 million, a 28% decrease from first quarter 2020 due to lower sales of towed-streamer equipment spares and repairs.
Consolidated gross margin for the quarter was 6%, compared to 27% for the fourth quarter 2020 and 50% one year ago.
Consolidated operating expenses were $11.1 million, a 50% decrease from $22 million in the first quarter 2020 resulting from the cost reductions implemented during the first half of 2020.
