ION Geophysical has a reported first quarter net loss of -$2.3 million on revenues of $56.4 million compared to a Q1 net loss of -$21.4 million on revenues of $37 million in 2019.
ION Geophysical has a reported first quarter net loss of -$2.3 million on revenues of $56.4 million compared to a Q1 net loss of -$21.4 million on revenues of $37 million in 2019.
ION’s operating income was $6.3 million compared to an operating loss of -$15.9 million in the first quarter 2019, an improvement that was attributed primarily to an increase in 2D multi-client data library sales.
‘We achieved the best first quarter performance in six years despite challenges from both coronavirus and oil price volatility,’ said Chris Usher, ION’s president and chief executive officer. ‘Our first quarter results reflect the value of our offshore data library and validate the combined effectiveness of our strategic refocus and over $20 million cost reductions. Our team creatively closed a number of large multi-client contracts, some of which were delayed from the fourth quarter, even after E&P market dynamics changed.
‘In April, we announced another $18 million of cost reductions, building on the over $20 million of cost savings made in January, to preserve cash and manage liquidity. We also qualified for and received $6.9 million of government relief in April. In addition, we expect the sale of our 49% share in the non-strategic Inova land seismic equipment joint venture with BGP to deliver an additional $12 million liquidity boost in the second half of the year.
‘We have quickly shifted to new digital engagement models with customers and deployed new technology solutions that facilitate remote offshore operations management. For example, Marlin SmartPort is being used by port staff to control port operations from home, and our Software group launched a ‘smart operations’ navigation and simultaneous operations offering for E&P customers to remotely oversee their offshore operations.’
Within the E&P Technology & Services segment, multi-client revenues were $41.6 million, an increase of 78%. This result was driven by increased sales of ION’s global 2D data library, partly offset by a reduction in new venture revenues. Imaging and Reservoir Services revenues were $4.9 million, an increase of 34%, from working through existing backlog.
Within the Operations Optimization segment, Optimization Software & Services revenues were $4.4 million, a 12% decrease from the first quarter 2019 due to reduced command and control hardware sales and, to a lesser extent, Covid-19- related reduced seismic activity and associated services demand. Devices revenues were $5.5 million, a 14% increase from the first quarter 2019, due to increased sales of towed streamer equipment spares and repairs.
