ION loss widens as revenues fall 70 per cent
Houston-based ION Geophysical booked net loss in the third quarter 2020 of $16.6 million, or a loss of $1.16 per share, compared to a net loss of $3.7 million, or a loss of $0.26 per share in the third quarter 2019.
The company reported total net revenues of $16.2 million in the third quarter 2020, a 29 per cent decrease compared to $22.7 million in the second quarter 2020 and a 70 per cent decrease compared to $53.2 million one year ago.
At September 30, 2020, backlog, which consists of commitments for multi-client programs and proprietary imaging work, was $17.7 million or 77 per cent higher against backlog at June 30, 2020.
The company reported adjusted EBITDA of negative $6.6 million for the third quarter 2020, a decrease from $15.5 million one year ago.
Year-to-date net revenues were $95.4 million, a 28 per cent decrease year-over-year versus $132.0 million of net revenues one year ago.
While year-to-date revenues were down $36.6 million, the net loss attributable to ION improved by $9.6 million primarily due to the over $38 million of structural changes and associated cost reductions implemented earlier this year.
Net loss attributable to ION was $24.1 million in the first nine months of 2020, or a loss of $1.69 per share, against a net loss attributable to ION of $33.7 million, or a loss of $2.39 per share in the first nine months of 2019.
Year-to-date Adjusted EBITDA was $16.5 million, a decrease from $22.7 million for the first nine months of 2019.
Chris Usher, ION’s president and CEO, said:
“Our third quarter results were negatively impacted by continued challenging market conditions associated with repercussions of the oil price volatility earlier this year.
“We expect the fourth quarter to be significantly better than the second quarter with the potential to approach our fourth quarter results from last year.”
In response to the market uncertainty from the COVID-19 pandemic and lower oil and gas prices, the company drew under its credit facility during the first quarter 2020, of which $22.5 million remains outstanding and in the company’s cash balances as of September 30, 2020.
At quarter close, the company’s total liquidity was $59.4 million.