Magseis Fairfield reports results for the first quarter 2022

May 10, 2022

(Oslo, 10 May 2022) Magseis Fairfield reported revenue of USD 75.2 million and an EBITDA of USD 3.1 million in the first quarter 2022. The quarter was driven by seasonally lower activity, and weak results from Gulf of Mexico project which was delayed due to bad weather and environmental conditions.

Highlights for the first quarter:

  • Revenue of USD 75.2 million, gross profit of USD 8.4 million, and EBITDA of USD 3.1 million
  • Gross margin of 11%, affected by weather and environmental conditions on the ZXPLR 1 crew project in the Gulf of Mexico
  • Operating loss of USD 9.0 million and net loss after tax of USD 12.2 million
  • Acquired node-on-a-rope handling systems to expand capacity and consolidate the market
  • Cash holding of USD 15.7 million at end of March - strengthened through increase of RCF after the end of the quarter
  • Order backlog of USD 257 million with three new contract wins in the quarter
  • One contract extended after the end of the quarter
  • Forecasting an OBN market approaching a value of USD 1 billion in 2023

“The market continues to improve, and we will operate at close to full capacity in the second quarter. The positive market outlook has been reinforced with the increasing focus on energy security, and we see higher margins and generally better terms and conditions for the projects in the market. We believe our market will approach a value of around USD 1 billion in 2023,” says CEO Carel Hooijkaas in Magseis Fairfield.

The Q1 results were heavily impacted by the weather and environmental conditions on the ZXPLR1 crew in the Gulf of Mexico. This contract was signed in early 2021 during very different market conditions. With the current tightening market conditions, the company is seeking to improve terms and conditions as well as pricing. Excluding the ZXPLR1 crew the gross margin was 23%.

The company sees 25% market growth in 2022, with about 70% of the visible projects awarded so far. Key opportunities remain in Europe, the Americas and Asia. Looking ahead, the company is forecasting an OBN market approaching a value of USD 1 billion in 2023, with Magseis Fairfield uniquely positioned to offer OBN solutions in this growth market.

To support higher activity and the mobilization of all crews, the company has strengthened its liquidity position after the end of the quarter. The revolving credit facility with DNB has been increased by USD 15 million through to the end of the third quarter, and the underlying USD 30 million RCF has been extended with one year to December 2024.

Please note that alternative performance measures (APM) used in this release are described in note 15 in the report for the first quarter.

First quarter conference call information:

An earnings conference call followed by Q&A will be hosted by CEO Carel Hooijkaas and CFO Stig Hognestad at 10:00 CEST.

You may follow the first quarter results via webcast with supporting slides, available at this link: http://q1er.magseisfairfield.com

You may also use an audio dial-in for the conference call where you will be able to ask questions. Please dial in using the following link: http://q1erqna.magseisfairfield.com (alternative is to dial +47 23 50 05 05) | Confirmation code: 2739981

Please note that if you follow the webcast via the above URL and use the audio dial-in to listen, you will experience a 30 second standard buffering delay. If you follow the webcast for both audio and video, there will be no buffering delay and the audio has superior quality.

Please join the event 5-10 minutes prior to scheduled start time. When prompted, provide the confirmation code: 2739981.

The first quarter report and presentation are enclosed and are available at magseisfairfield.com. Also, the webcast will be made available at Magseis Fairfield’s website after completion of the conference call.

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:

---

For further information, please contact:

Carel Hooijkaas, CEO
Tel: +47 480 49 277
Email: carel.hooijkaas@magseisfairfield.com

Stig Hognestad, CFO
Tel: +47 902 59 040
Email: stig.hognestad@magseisfairfield.com

---

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.

Q1 2022 Presentation

Q1 2022 Report

Q1 2022 Webcast