(Oslo, 8 August 2022) – The below information is released to provide Magseis Fairfield shareholders updated financial information in connection with the announced voluntary exchange offer by TGS ASA to acquire all shares of Magseis Fairfield ASA. The offer document pertaining to the offer is expected to be published by TGS in the second half of August 2022, while Magseis Fairfield will release its full Q2 2022 results at approximately 7:00 CEST on August 25, 2022. CEO Carel Hooijkaas and CFO Stig Hognestad will present the results on a webcast followed by a Q&A at 10:00 CEST.
The Board of Magseis Fairfield has unanimously resolved to recommend the announced offer by TGS.
Based on preliminary reporting from the operating units, Magseis Fairfield expects Segment revenues to amount to USD 103 million in Q2 2022, up 38% from USD 74.7 million in Q1 2022. Segment gross profit for Q2 2022 is expected at USD 14.1 million, a tenfold improvement from USD 1.3 million in Q1 2022. Segment EBITDA for Q2 2022 is expected at USD 6.2 million, compared to an EBITDA-loss of USD 4.3 million in Q1 2022. EBITDA as per IFRS for Q2 2022 is expected at around USD 13 million, compared to USD 3.1 million in Q1 2022.
Revenue was in line with management’ expectations for the quarter, with a somewhat weaker EBITDA reflecting a weak start to the quarter. Operations improved through May and June, and at the end of the quarter all crews were in operation on new and higher margin contracts.
As commented upon in the report for the first quarter, the company had secured a temporary increase in its revolving credit facility to USD 45 million to accommodate for the higher working capital requirements due to the increased activity level. Total available cash at the end of Q2 2022 was USD 23 million.
The current backlog is approx. USD 235 million, compared to USD 257 million at the end of Q1 2022.
The continued strong backlog provides good visibility to drive operational project execution. The company continues to see strong demand for OBN services, allowing for 25% growth in the OBN market in 2022 and tendering activity indicating further market growth in 2023.
This information is considered to include inside information pursuant to article 7 of the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by André Bjørvik, SVP Corporate Communication, at the date and time as set out above.
For further information, please contact:
Carel Hooijkaas, CEO
Tel: +47 480 49 277
Stig Hognestad, CFO
Tel: +47 902 59 040
About Magseis Fairfield
Magseis Fairfield is the global leading provider of ocean bottom seismic (OBS) technology and data acquisition projects. The company has a flexible business model with full scale node operations, as well as lease and sale models. The Marine Autonomous Seismic System "MASS" nodes and the range of Z-nodes combined with handling systems and source technology enables market leading deployment speed and highly cost-efficient acquisition of data with exceptional quality.
Alternative Performance Measures (APM)
Certain financial measures and ratios related thereto in this release, including gross profit and EBITDA (the “Non-GAAP Measure”), are not specifically defined under IFRS or any other generally accepted accounting principles. These measures are presented in this release because they are among the measures used by Management to evaluate the cash available to fund ongoing, long-term obligations and they are frequently used by other interested parties for valuation purposes or as a common measure of the ability of a company to incur and meet debt service obligations. These measures may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, and you should not consider such items as alternatives to profit for the year, total operating revenues, operating income or any other performance measures derived in accordance with IFRS, and they may be different from similarly titled measures used by other companies. Please also see our quarterly reports for further information, reconciliations and historical figures.
Gross profit represents operating revenue less cost of goods sold.
EBITDA - Earnings before interest, tax, depreciation and amortization. EBITDA is a key financial parameter for Magseis Fairfield.