HIGHLIGHTS – First Quarter
- Strong operational performance results in best financial quarter to date
- Awarded an extension to Red Sea survey for BGP and Saudi Aramco
- Raised USD 40 million of new equity to finance planned expansion
- Started preparations for the rigging of our second high-capacity cable vessel
- Revenue of USD 21.1 million compared to USD 18.1 million in 2016
- EBITDA of USD 8.3 million compared to USD 1.6 million in 2016
- EBIT of USD 4.8 million compared to USD -2.5 million in 2016
- Net Income of USD 3.5 million compared to USD -3.9 million in 2016
Idar Horstad, CEO Statements:
“Q1 was another strong quarter for Magseis with USD 21.1 million in revenue, EBITDA of USD 8.3 million and a net profit before tax of USD 4.3 million. This demonstrates the efficiency of our operation in the Red Sea and robustness of our equipment as well as the very good cooperation with our partner BGP and Saudi Aramco. Based on this performance, we were awarded the S-78 Extension which is now well underway.
The preparations for the ConocoPhillips Ocean Bottom Seismic (OBS) 4D project on the Eldfisk Field in the southern North-Sea are progressing well and we are on plan with respect to building new equipment and recruiting staff for this mobile ”smart-operation.” The Eldfisk project represents a step change in OBS operations with a set up that reduces the cost of OBS data significantly for our customers. This lowers the adoption barrier and will result in an expansion of the customer base and a larger market.
During the first quarter, we successfully raised USD 40 million in new equity in a process that was met with significant interest from investors. We are very pleased to see that most of our existing shareholders participated in the new funding and welcome our new shareholders. The new capital will, in combination with additional funding, allow us to expand our capacity by 10,000 new MASS nodes, rig a new high capacity cable handling vessel and continue to improve our technology to provide new innovative and cost efficient solutions to our clients.
The preparations for our new cable vessel are progressing well. We have placed orders for long lead items and started to recruit additional staff. More than 20 different ship owners were invited to participate in the tender process and final negotiations are ongoing. We expect to announce the new charter party before the summer. The new vessel will have a capacity to handle up to 1,000 km of cable, more than 10,000 nodes and have permanent ROV capability onboard. This vessel represents a game changer for the OBS market and a significant step towards our Vision: “To re-shape the Ocean Bottom Seismic Market”.