ION Geophysical has reported a net loss of $13 million on revenues of $27 million in the fourth quarter of 2020, compared to net loss of $14.5 million on revenues of $43 million in Q4 2019.
ION Geophysical has reported a net loss of $13 million on revenues of $27 million in the fourth quarter of 2020, compared to net loss of $14.5 million on revenues of $43 million in Q4 2019.
Revenues for the full year 2020 were $122.7 million compared to $174.7 million in 2019. However, the net loss for the full year 2020 was $37.2 million compared to $48.2 million in 2019. Net loss improved by $11 million primarily due to the $38 million of structural changes and cost reductions implemented during the first half of 2020.
E&P Technology & Services segment revenues were $19.9 million in Q4 2020 compared to $29.7 million for fourth quarter 2019. Multi-client revenues were $17.2 million, a decrease of 27%. Imaging and Reservoir Services revenues were $2.8 million, a 55% decrease year on year.
Operations Optimization segment revenues were $7.4 million for the fourth quarter of 2020 compared to $13million for Q4 2019. Optimization Software & Services revenues were $3.3 million, a 39% decline year on year. Devices revenues were $4 million, a 46% decline year on year owing to lower sales of towed streamer equipment spares and repairs. Operating expenses were $11.7 million, compared to $15.1 million in the fourth quarter 2019.
Chris Usher, the company’s president and chief executive officer, said: ‘During the second half of the year, we began to fully benefit from the refocused strategy, restructuring and cost reductions we outlined in early 2020, which helped to partially mitigate the impact of reduced E&P spending triggered by the pandemic across the oilfield service 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 this summer. We commercialized our proprietary Gemini extended frequency source technology, a key ingredient for improving 3D subsurface imaging in complex geological settings, where some of the most attractive E&P investment areas reside. The combination of our strategic entry into the 3D new acquisition multi-client market and commercialization of Gemini enabled us to increase our backlog during the last two quarters, reversing several consecutive quarters of steady decline. We continued to build on our portfolio of low-cost, high-return 3D reimaging programmes and started benefiting commercially from the global 2D data collaboration we signed with PGS. In addition, we installed our first Marlin SmartPort system and won a highly competitive tender for 17 additional ports.
‘While clients are still setting budgets, analysts expect the offshore E&P market to modestly improve in 2021 as the year unfolds and the digitalization trend to continue growing at a rapid pace.
At December 31, 2020, backlog was $19.7 million or 11% higher sequentially and 4% higher than last year. The company’s liquidity of $44.9 million consisted of $37.5 million of cash (including borrowing).
