ION Geophysical has reported a net loss of $5.2 million on revenues of $22.7 million for the second quarter 2020, compared with a net loss of $8.6 million on revenues of $41.8 million one year ago.
ION Geophysical has reported a net loss of $5.2 million on revenues of $22.7 million for the second quarter 2020, compared with a net loss of $8.6 million on revenues of $41.8 million one year ago. ION’s net loss was $7.5 million in the first half of 2020, compared with a net loss of $30 million in the first half of 2019.
Net cash provided by operating activities was $23.3 million in the second quarter of 2020 compared to $1.1 million in the second quarter 2019. At quarter close, the company’s total liquidity was $71.3 million.
Within the E&P Technology & Services segment revenues were $15 million, down from $28.5 million in Q2 2019. Multi-client revenues were $11.6 million, a decrease of 49%, primarily due to reduced sales of ION’s global data library. Imaging and Reservoir Services revenues were $3.7 million, a decrease of 36%, due to lower proprietary tender activity.
Operations Optimization segment revenues of $7.5 million were down from $13 million in Q2 2019. Optimization Software & Services revenues were $3.4 million, a 41% decrease due to reduced seismic activity resulting from Covid-19. Devices revenues were $4.1 million, a 45% decrease from the second quarter 2019, due to lower sales of towed streamer equipment spares and repairs.
Consolidated operating expenses were $10.1 million, down from $22.1 million in the second quarter 2019.
Chris Usher, ION’s president and chief executive officer, said. ‘Although commodity prices rebounded significantly, the sharp decline earlier this year triggered E&P companies to reduce 2020 budgets, which tends to disproportionately impact discretionary purchases such as seismic data sales.
‘In spite of reduced offshore activity and Covid-19 travel challenges, I’m pleased we garnered commercial support and permits for a new 3D multi-client programme in the North Sea. While we expect to acquire the majority of the programme next summer, we may start an initial phase later this year to avoid disruptions around large windfarm installations. We continued to build on our highly successful portfolio of low cost, high return reimaging programmes with a new programme in Mauritania. The global 2D data collaboration with PGS is progressing well.’
