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:
- Started execution of our 100th OBN project
- Zero recordable safety incidents
- Revenue of USD 42.9 million, gross profit of USD 7.9 million, and EBITDA of USD 0.6 million
- Available cash of USD 43.9 million, including RCF
- Order backlog of USD 228 million at end of Q1 2021, +15% from YE 2020
- Backlog of approximately USD 190 million for delivery in Q2-Q4 2021, including changes in order phasing and contract awarded in April
'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.
Source: Magseis Fairfield