HOUSTON, July 1, 2020 /PRNewswire/ -- ION Geophysical
Corporation (NYSE: IO) today announced that the Company expects
second quarter 2020 revenues to be approximately $22 million, increasing cash to approximately
$40 million (excluding net revolver
borrowings) at June 30, 2020, an
improvement of approximately $24
million over the prior quarter. Total liquidity,
consisting of cash on hand and available borrowing base capacity
under the revolving credit facility, is expected to exceed
$70 million at quarter end.
Second quarter revenues were consistent with the Company's
expectations due to customer spend contraction related to COVID-19
demand destruction and oil oversupply weighing on the commodity
price. Despite unprecedented market conditions, first half
revenues are greater than or equal to revenues in the comparable
prior five years.
"In response to these challenges, we conservatively re-planned
the business with a focus on cash optimization," said Chris Usher, ION's President and Chief Executive
Officer. "We worked closely with our clients to understand
revised budgets and to scale our business appropriately. We
saw a strong improvement in our cash balance from harvesting our
robust first quarter sales and realizing the additional cost
reduction measures we put in place entering the quarter, and, to a
lesser extent, receiving government relief funding.
"We further limited our active priorities to improve focus and
execution on strategic initiatives, and ultimately deliver better
results to shareholders. New offshore surveys are starting
despite travel and border restrictions, and we are deep into
negotiations on some exciting 3D new acquisition opportunities
starting in 2020 and 2021. We just signed a deal for the
first 3D multi-client program in Mauritania, another reimaging project similar
to the successful low cost, high return programs we've executed in
Mexico and Brazil. We also
announced a global 2D data collaboration with PGS that will provide
E&P companies with a more efficient way to identify and
high-grade attractive frontier investment opportunities as they
rebalance portfolios. As for extending our optimization
software in ports and harbors, we enabled our landmark client to
shift from manual operations to our smart Cloud-based digital
platform. Building on this experience, we embarked on a
targeted marketing campaign to more than 1,000 ports globally and
are engaged on several promising digitalization opportunities in a
number of countries.
"I believe we are better positioned to mitigate some of the
immediate impacts of the market disruption given our improved cash
position, lower cost basis and strategy execution progress.
We will remain agile and continue creatively supporting our clients
with value-added solutions that enhance decision-making."
About ION
Leveraging innovative technologies, ION delivers powerful
data-driven decision-making to offshore energy, ports and defense
industries, enabling clients to optimize operations and deliver
superior returns. Learn more at iongeo.com.
Contacts
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.552.3011
mike.morrison@iongeo.com
ION (Media relations)
Vice President, Communications
Rachel White, +1 281.781.1168
rachel.white@iongeo.com
The information herein contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements may include information and other
statements that are not of historical fact. Actual results may vary
materially from those described in these forward-looking
statements. All forward-looking statements reflect numerous
assumptions and involve a number of risks and uncertainties. These
risks and uncertainties include the risks associated with the
timing and development of ION Geophysical Corporation's products
and services; pricing pressure; decreased demand; changes in oil
prices; agreements made or adhered to by members of OPEC and other
oil producing countries to maintain production levels; the COVID-19
pandemic; and political, execution, regulatory, and currency risks
. For additional information regarding these various risks and
uncertainties, see our Form 10-K for the year ended December 31, 2019, filed on February 6, 2020. Additional risk factors, which
could affect actual results, are disclosed by the Company in its
filings with the Securities and Exchange Commission ("SEC"),
including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the
year. The Company expressly disclaims any obligation to revise or
update any forward-looking statements.
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SOURCE ION Geophysical Corporation