ION announces preliminary second quarter 2021 revenues of ~$20 million, an increase of ~40% sequentially

Rhea-AI Summary

ION Geophysical Corporation (NYSE: IO) projects second quarter 2021 revenues at approximately $20 million, reflecting a 40% sequential increase but a 13% decrease from the previous year. The company reported total liquidity of about $33 million, including $27 million in cash and $6 million in available borrowings. Additionally, backlog stands at $14 million due to advancements in its Mid North Sea High 3D multi-client program, utilizing Marlin™ and Orca® technologies for efficient surveys. CEO Chris Usher noted signs of market recovery amidst rising oil prices.

Positive

• Sequential revenue increase of 40%.
• Liquidity of approximately $33 million.
• Backlog estimated at $14 million, reflecting strong demand.

Negative

• Revenue decrease of 13% compared to prior year.
• Dependence on fluctuating oil prices poses risks.

HOUSTON, July 15, 2021 (GLOBE NEWSWIRE) -- ION Geophysical Corporation (NYSE: IO) today announced that the Company expects second quarter 2021 revenues to be approximately $20 million, an improvement of approximately 40% sequentially or a decrease of 13% from the prior period. At quarter end, the Company’s total liquidity of approximately $33 million consisted of $27 million of cash (including net revolver borrowings of $20 million) and approximately $6 million of remaining available borrowing capacity under the revolving credit facility. Backlog is estimated to be $14 million as the Company’s Mid North Sea High 3D multi-client program in the North Sea proceeded ahead of schedule this quarter, leveraging the Company’s proprietary Marlin™ and Orca^® digital technologies to acquire the survey in a more efficient, eco-friendly manner.

“Second quarter revenues improved sequentially, consistent with our expectations of momentum building throughout the year,” said Chris Usher, ION’s President and Chief Executive Officer. “We continue to execute the two main pillars of our growth strategy. Our new 3D program in the North Sea is progressing well with solid industry support. We continue to advance our diversification into ports and offshore logistics with a positive rollout in CalMac’s series of UK ports and a new Africa maritime digitalization strategy. Encouragingly, even in this uncertain environment, we are seeing some signs of market recovery – oil prices are up nearly 50% this year and early movers are starting to strategically purchase data again.”

About ION

Leveraging innovative technologies, ION delivers powerful data-driven decision-making to offshore energy and maritime operations markets, enabling clients to optimize investments and results through access to our data, software and distinctive analytics. Learn more at iongeo.com.

Contacts

ION (Investor relations)

Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.879.3615
mike.morrison@iongeo.com

ION (Media relations)

Vice President, Communications
Rachel White, +1 281.781.1168
rachel.white@iongeo.com

The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased demand; changes in oil prices; agreements made or adhered to by members of OPEC and other oil producing countries to maintain production levels; the COVID-19 pandemic; the ultimate benefits of our completed restructuring transactions; and political, execution, regulatory, and currency risks. For additional information regarding these various risks and uncertainties, see our Form 10-K for the year ended December 31, 2020, filed on February 12, 2021, and our Form 10-Q for the quarter ended March 31, 2021, filed on May 6, 2021. Additional risk factors, which could affect actual results, are disclosed by the Company in its filings with the Securities and Exchange Commission, including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.

FAQ

What are ION's projected revenues for Q2 2021?

ION expects revenues to be approximately $20 million for Q2 2021.

How does ION's Q2 2021 revenue compare to the previous quarter?

The projected revenue represents a 40% increase sequentially.

What was the year-over-year revenue change for ION in Q2 2021?

There is a 13% decrease in revenue compared to the prior year.

What is ION's liquidity position as of Q2 2021?

ION's total liquidity is approximately $33 million.

What factors are contributing to ION's backlog?

The backlog of $14 million is attributed to the Mid North Sea High 3D multi-client program.

How is ION's growth strategy performing in Q2 2021?

ION's growth strategy is on track, with solid support for its new 3D program in the North Sea.

What is the impact of oil prices on ION's business?

Rising oil prices are showing early signs of market recovery, affecting ION's operations positively.