Magseis Fairfield trims losses

Seabed seismic player Magseis Fairfield has narrowed it quarterly loss despite significantly lower year-on-year revenue.

The Oslo-listed company generated Q3 2020 revenue of $48.4 million, down from $74.4 million same time last year.

The year-on-year decline mainly reflects the significantly lower activity in the seismic acquisition market in 2020 compared to 2019.

The company booked quarterly loss of $7.8 million, versus loss of $46 million in the prior-year quarter.

For the full-year 2020 net loss was $19.7 million, against loss of $151.5 million in 2019.

Full-year 2020 revenue amounted to $193.4 million, compared to $459.6 million in 2019. The 2019 figures included approximately $110 million in one-off sales of MASS I nodes, with the remainder of the revenue decline attributable to the lower activity level in the market.

The above result is mainly due to the company’s cost-cutting initiatives in the past year.

In April 2020, Magseis Fairfield announced measures as a response to the new market environment, resulting in further capex cuts.

The company has reduced CAPEX by some 80 per cent and SG&A by approximately 60 per cent compared to 2019.

Backlog

Magseis Fairfield order backlog stood at $198 million at the end Q4 2020. Total secured backlog for 2021 is currently approximately $190 million.

This backlog is up 17 per cent sequentially and also up 20 per cent year-over-year.

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