(Oslo, 4 May 2021) Magseis Fairfield continued to build backlog during a transition quarter. Magseis Fairfield reported revenue of USD 42.9 million, a gross profit of USD 7.9 million, and an EBITDA of USD 0.6 million in the first quarter. As communicated on the fourth quarter presentation, the first quarter was impacted by low capacity utilization and low-margin projects secured during a weaker oil market in 2020, and the margin decline was further accentuated by operational and technical challenges on one of the data acquisition contracts in the quarter. The company expects gross profit and EBITDA to recover through 2021 on the back of higher backlog at improved margins and tender activity.
Highlights for the first quarter:
“The first quarter was a transition quarter for Magseis Fairfield. We continued to build backlog and exited the quarter with more crews ready to execute on the growing order backlog for the remainder of the year. Our focus is now on good project execution, securing additional projects for the remaining available crew months in 2021, and on extending our visibility into 2022. We continue to see tendering activity for 2021, and importantly we are tending for the first projects in 2022,” says CEO Carel Hooijkaas in Magseis Fairfield.
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 started our 100th OBN project during the first quarter which speaks to the depth and breadth of our experience in this market. Our differentiated technologies offer a clear market advantage that is not available to those who offer commoditized solutions, and we are in position to capture the promising market opportunities we see in 2021 and beyond,” says Hooijkaas.
Magseis Fairfield is also progressing with the building of a renewables business and has become part of the Centre for Geophysical Forecasting (CGF) to do fundamental research into geophysical solutions for the renewables markets. The company is currently ramping up for client tests in both the Carbon Capture and Storage (CCS) and Windfarm markets in the North Sea this summer.
Separately, the company has extended its commitment to safe and sustainable operations by launching a strategy to become carbon neutral by 2040 – or earlier, launching initiatives to reduce the environmental impact of own and subcontractors’ operations, and offering the option to its customers to offset any remaining emissions.
Please note that alternative performance measures used in this release are described in note 15 in the first quarter report.
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 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 details: Telephone: +47 2350 0501 | Confirmation code: 7999617
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: 7999617.
The first 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.
For further information, please contact:
Mark Ivin, CFO
Tel: +47 948 88 606
Carel Hooijkaas, CEO
Tel: +47 480 49 277
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.