Oil and gas technology services and solutions company ION Geophysical Corp. (IO:NYSE) yesterday afternoon announced financial results for Q1/20 ending March 31, 2020.
The firm reported total net revenues of $56.4 million in Q1/20, which represented a 53% increase over $37.0 million in Q1/19. The company advised that the increase was due primarily to an increase in 2D multi-client data library sales.
For Q1/20, the firm additionally reported operating income of $6.3 million, compared to an operating loss of $15.9 million in Q1/19. The company further indicated that in Q1/20, it posted a net loss of $2.3 million, or ($0.16) per share, compared to a net loss of $21.4 million, or ($1.52) per share in Q1/19.
The company's President and CEO Chris Usher commented, "We achieved the best first quarter performance in six years despite challenges from both coronavirus and oil price volatility...Our strong revenues of $56 million generated positive operating income and $23 million in Adjusted EBITDA, and, as a result, we expect our liquidity position to improve as revenues are collected in the second quarter. Our first quarter results reflect the value of our offshore data library and validate the combined effectiveness of our strategic refocus and over $20 million cost reductions. Our team creatively closed a number of large multi-client contracts, some of which were delayed from the fourth quarter, even after E&P market dynamics changed. I remain confident in ION's value proposition to cost-effectively support customers' data-driven decision-making in this lower-for-longer exploration and production environment."
The company indicated that it has maintained a strong liquidity position in the face of energy market turmoil and the COVID-19 situation. The firm stated that as of March 31, 2020, it had total liquidity of $53.8 million, which consisted of $42.7 million in cash and $11.1 million remaining available balance under its $50.0 million revolving credit line.
ION Geophysical Corp. is a technology-focused company headquartered in Houston, Tex. that provides geophysical technology, services and solutions to the global oil and gas industry. Its products and technical services are designed to help oil and gas exploration and production companies obtain images of the earth's subsurface.
ION Geophysical started off the day with a market capitalization of around $25.1 million and an enterprise value of $115.7 million with approximately 15.03 million shares outstanding and a short interest of about 6.40%. IO shares opened more than 100% higher today at $3.37 (+$1.70, +101.80%) over yesterday's $1.67 closing price. The stock has traded between $2.84 to $4.36 per share today and is currently trading at $2.88 (+$1.21, +72.46%).
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