Magseis Fairfield reports results for the second quarter and first half year 2021

August 24, 2021

(Oslo, 24 August 2021) Magseis Fairfield reported revenue of USD 58.8 million and a gross margin of 29% in the second quarter 2021, driven mainly by higher crew utilization, improved project mix and higher contract margins. EBITDA increased to USD 14.3 million from USD 0.6 million in the previous quarter and USD 9.9 million in Q2 2020.

Highlights for the second quarter:

  • Continued strong operational execution and safety record
  • Completed 100th OBN survey and the first ever carbon neutral survey
  • Launched Extended High Resolution (XHR) Renewables Crew on client tests
  • Revenue of USD 58.8 million, gross profit of USD 16.8 million, and EBITDA of USD 14.3 million
  • Cash balance of USD 41.5 million, with additional liquidity secured by increase of RCF in July
  • Order backlog of USD 230 million at end June, further increased to USD 339 million with Q3 contract awards

“The second quarter was a good quarter for Magseis Fairfield, with capacity utilization and margins strengthening from the previous quarter. New contract awards after the end of the quarter have lifted our order backlog significantly and improved our near-term visibility, and we are focused on continued good project execution. Our customers are now moving their focus towards tendering for projects in 2022, which puts us in a position to extend our visibility further,” says CEO Carel Hooijkaas in Magseis Fairfield.

USD 178 million of the current backlog of USD 339 million is scheduled for delivery in 2021.

The market outlook for the OBN market continues to indicate double-digit growth for appraisal and development projects and single-digit growth for production projects from 2021 through 2025, with Magseis Fairfield uniquely positioned to offer OBN solutions in these growth markets.

“We completed our 100th OBN project during the second quarter and made this the first ever carbon neutral survey in the industry. This is one example of our differentiated approach, and proof that our technologies offer a clear market advantage. We will continue to integrate our technology stacks to deliver fit-for-purpose and differentiated solutions, which will provide us with a strong technology platform for the projects we see in pipeline towards 2025,” adds Hooijkaas.

Magseis Fairfield earlier this year established a Renewables unit and has invested in an XHR Renewables crew which is mobilizing on client tests in the North Sea over the summer. After the end of the quarter the company has signed an MOU to become part of the long-term Greensand CCS project in Denmark.

Please note that alternative performance measures used in this release are described in note 15 in the report for the second quarter and first half year 2021.

First quarter conference call information:

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

You may follow the second quarter results via webcast with supporting slides, available at this link: http://q2er.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://q2erqna.magseisfairfield.com (alternative is to dial +47 2350 2007) | Confirmation code: 4867392

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: 4867392.

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

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For further information, please contact:

Mark Ivin, CFO
Tel: +47 948 88 606
Email: mark.ivin@magseisfairfield.com

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

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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.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q2 2021 Presentation

Q2 2021 Report