Magseis Fairfield continued to deliver solid operational performance in the fourth quarter 2020, with safe and reliable execution of all ongoing projects. For the full year 2020, the company showed higher gross margins and EBITDA, a positive operating cash flow, and increased backlog, despite lower revenue and a challenging market environment.
Financial highlights for the fourth quarter and full year 2020:
- Revenue of USD 48.4 million for Q4 and USD 193.4 million for 2020
- Gross margin of 32% both in Q4 and 2020
- EBITDA of USD 12.2 million in Q4 and USD 38.4 million for 2020, excluding USD 2.9 million restructuring costs
- Cash flow from operations of USD -6.1 million in Q4 and USD +20.5 million for 2020
- Order backlog increase to USD 198 million, +17% from Q3 and +20% from year-end 2019
- Continued inflow of new orders in Q1 2021. Total secured backlog for 2021 is currently ~USD 190 million
- Cash balance of USD 54.8 million and net cash position of USD 21.9 million
“Our operational performance was strong also in the fourth quarter, with an excellent safety record and continued good execution on all operations. Revenue increased slightly quarter on quarter with continued healthy gross margins, and we reached our targets for the previously announced cost and capex cuts. At the same time, we saw an increasing order backlog and have continued to receive new contract awards also in the first quarter of 2021. There are signs of the market improving and we are indeed seeing an increased tender activity for 2021 projects in our core areas in the Gulf of Mexico and the North Sea. We potentially see higher utilization of the node inventory than previously anticipated,” says CEO Carel Hooijkaas in Magseis Fairfield.
The current market outlook for the OBN market is more positive from 2020 to 2021 than Magseis Fairfield has earlier presented, and the company continues to see growth beyond 2021 due to increasing spend in greenfield and brownfield projects.
Magseis Fairfield is also beginning to explore new market opportunities outside of oil and gas to offer its clients the solutions they require in the ongoing energy transition. The wholly owned subsidiary Magseis Renewables will be used as a vehicle to address the significant long-term market opportunities for OBN solutions in areas such as offshore Carbon Capture and Storage (CCS), windfarm placements, and mineral mining.
“Magseis Fairfield continues to be uniquely positioned to offer OBN solutions in the appraisal,?development?and production space, as our clients move away from exploration and prioritize cash and value generation from existing fields. The business outlook is positively impacted by rising oil prices on the back of recent OPEC+ policy changes, the ongoing Covid-19 vaccine rollout, and economic stimulus actions, which may contribute to an oil demand recovery throughout 2021. Our differentiated technology position and strategy gives us a clear market advantage that is not available to?others who offer commoditized solutions,” says Hooijkaas.?