HIGHLIGHTS Q3 2020
• OBN surveys in the North Sea and the Middle East were successfully completed
• USD 34.2 million of accounts payable converted to interest bearing debt
• Smart-stack cost-reduction solutions implemented in accordance with communicated business strategy
• New CEO appointed
• First late sales from the Utsira multi-client library secured
• New contract with an international energy company for OBN work in the North Sea in Q2 2021 secured
• Discussions with stakeholders initiated in order to improve the company’s financial position
'The challenges resulting from the COVID-19 pandemic continued in Q3 2020. Nevertheless, our crews successfully completed the projects in Egypt and Norway without incident and to our clients’ full satisfaction. Furthermore, AGS has recently entered into a contract with an international energy company for OBN work in the North Sea scheduled to start in Q2-21, with an estimated duration of one month. We also took final delivery of the Utsira multi-client data and secured two licensing agreements in cooperation with our partner TGS.
However, due to the difficult market conditions, we have to date been unsuccessful in securing work for our crews in Q4-20 and Q1-21 as start dates for projects have been moved out in time. Smart-stack solutions have been implemented in order to reduce costs to a minimum.
Due to the lack of revenue, we are unable to address our current debt obligations. Consequently, we are in active dialogue with stakeholders to address the Company’s debt situation and improve its balance sheet,' says Ronny Bøhn, CEO of Axxis Geo Solutions.
Source: Axxis Geosolutions