Magseis Fairfield reports results for the fourth quarter 2020

16 Feb 2021 07:00 CET

Company Name

MAGSEIS FAIRFIELD

ISIN

NO0010663669

Market

Oslo Børs

Symbol

MSEIS

(Oslo, 16 February 2021) Magseis Fairfield continued to deliver solid
operational performance in the fourth quarter 2020, with safe and reliable
execution of all ongoing projects. For the full year 2020, the company showed
higher gross margins and EBITDA, a positive operating cash flow, and increased
backlog, despite lower revenue and a challenging market environment.

Financial highlights for the fourth quarter and full year 2020:
• Revenue of USD 48.4 million for Q4 and USD 193.4 million for 2020
• Gross margin of 32% both in Q4 and 2020
• EBITDA of USD 12.2 million in Q4 and USD 38.4 million for 2020, excluding USD
2.9 million restructuring costs
• Cash flow from operations of USD -6.1 million in Q4 and USD +20.5 million for
2020
• Order backlog increase to USD 198 million, +17% from Q3 and +20% from year-end
2019
• Continued inflow of new orders in Q1 2021. Total secured backlog for 2021 is
currently ~USD 190 million
• Cash balance of USD 54.8 million and net cash position of USD 21.9 million

“Our operational performance was strong also in the fourth quarter, with an
excellent safety record and continued good execution on all operations. Revenue
increased slightly quarter on quarter with continued healthy gross margins, and
we reached our targets for the previously announced cost and capex cuts. At the
same time, we saw an increasing order backlog and have continued to receive new
contract awards also in the first quarter of 2021. There are signs of the market
improving and we are indeed seeing an increased tender activity for 2021
projects in our core areas in the Gulf of Mexico and the North Sea. We
potentially see higher utilization of the node inventory than previously
anticipated,” says CEO Carel Hooijkaas in Magseis Fairfield.

The current market outlook for the OBN market is more positive from 2020 to 2021
than Magseis Fairfield has earlier presented, and the company continues to see
growth beyond 2021 due to increasing spend in greenfield and brownfield
projects.

Magseis Fairfield is also beginning to explore new market opportunities outside
of oil and gas to offer its clients the solutions they require in the ongoing
energy transition. The wholly owned subsidiary Magseis Renewables will be used
as a vehicle to address the significant long-term market opportunities for OBN
solutions in areas such as offshore Carbon Capture and Storage (CCS), windfarm
placements, and mineral mining.

“Magseis Fairfield continues to be uniquely positioned to offer OBN solutions in
the appraisal, development and production space, as our clients move away from
exploration and prioritize cash and value generation from existing fields. The
business outlook is positively impacted by rising oil prices on the back of
recent OPEC+ policy changes, the ongoing Covid-19 vaccine rollout, and economic
stimulus actions, which may contribute to an oil demand recovery throughout
2021. Our differentiated technology position and strategy gives us a clear
market advantage that is not available to others who offer commoditized
solutions,” says Hooijkaas. 

Alternative performance measures used in this release are described in note 16
in the fourth quarter report.


FOURTH 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 fourth quarter results via webcast with supporting slides,
available at this link: http://q4er.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 0296 | Confirmation code: 6740888

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.

The fourth quarter and full-year 2020 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.


Source

Magseis Fairfield ASA

Provider

Oslo Børs Newspoint