Magseis Fairfield reports results for the second quarter 2022

August 25, 2022

Magseis Fairfield reported revenue of USD 103.3 million and an EBITDA of USD 13.0 million in the second quarter of 2022. While the financial performance improved materially quarter on quarter, the margin was hampered by a Gulf of Mexico project completed in April and delays in India. Execution on all other projects has been good.

At the time of reporting the backlog amounts to USD 400 million with a record high acquisition backlog, which is an increase of more than 30% year to date. The company predicts a 25% overall market growth in 2022 and another 20% growth in 2023, with the total market exceeding USD 1 billion in 2023.

Highlights for the second quarter:

  • Revenue of USD 103.3 million, up from USD 75.2 million in Q1
  • Gross margin of 20%, up from 11% in Q1
  • EBITDA of USD 13.0 million with margin of 13%, up from 4% in Q1
  • Operating profit of USD 0.5 million and net loss after tax of USD 4.0 million
  • Cash balance of USD 22.7 million
  • RCF temporarily increased by USD 15 million until the end of third quarter to support increased activity and mobilization of all crews
  • Backlog of USD 400 million at the time of reporting, with USD 170 million for delivery in 2022
  • Received voluntary exchange offer by TGS ASA to acquire all shares of Magseis Fairfield ASA. The Board of Magseis Fairfield has unanimously resolved to recommend the announced offer by TGS

All crews were in operation during the quarter, reflecting an improving market. The results are driven by a significant sequential improvement in margins from the acquisition activity, although year-over-year this is offset by lower high-margin equipment sales. With the current tightening market conditions, we see further growth and improvements in pricing and terms and conditions,” says CEO Carel Hooijkaas in Magseis Fairfield.

After the quarter end, the company has been awarded four new OBN contracts, of which one of them is the largest acquisition contract ever awarded to Magseis Fairfield. The contract is for ExxonMobil in Guyana, lasting for at least 14 months using ZXPLR technology. The project is scheduled to commence in Q4 2022.

“We are very pleased to have been awarded this large OBN project, expanding our presence beyond core areas and customers. This is our first OBN contract in Guyana, setting the stage for more projects in the region,” says Carel Hooijkaas, CEO in Magseis Fairfield.

The company continues to predict a significant shift in energy market dynamics. Customers are refocusing on investment and reserve security in stable geographies, with sustainability and competitiveness as key priorities. This provides strong market fundamentals for Magseis Fairfield. The company predicts a 25% overall market growth in 2022 and further 20% growth in 2023, with the total market exceeding USD 1 billion in 2023. The company continues to execute its renewables strategy, with a CCS pilot being executed in the third quarter and the Greensand CCS project scheduled for execution in Q4. Further opportunities are being pursued in North America, Europe, and Asia.

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

Second 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 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 | Confirmation code: 9074980

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.

The second 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:

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

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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.

Q2 2022 Presentation

Q2 2022 Report

Q2 2022 Webcast