HOUSTON, April 1, 2020 /PRNewswire/ -- ION
Geophysical Corporation (NYSE: IO) today announced that the Company
expects first quarter 2020 revenues to be in the range of
$56-57 million, over 50% greater than
the first quarter 2019 and over 30% greater than the fourth quarter
2019.
"Given the unprecedented market uncertainty from a convolution
of demand and supply-side events, from both the COVID-19 pandemic
and geopolitical oil price impact, we felt it was prudent to
provide a preliminary update on our revenues," said Chris Usher, ION's President and Chief Executive
Officer. "We had been successful in implementing our refined
asset light strategies in early 2020. Our team worked to
creatively close a number of large multi-client contracts, even
after the E&P market dynamics altered during the quarter.
The deals reflect the value of our diversified
offshore-focused data library and our ability to cost-effectively
support exploration in this lower-for-longer environment."
In January 2020, ION took action
to reduce SG&A costs and restructured our E&P Technology
and Services segment to streamline execution of our multi-client
business. Preliminary first quarter results validate the
combined effectiveness of our strategic refocus and over
$20 million annualized cost
reductions. Given the significant macroeconomic events now
impacting the E&P sector, ION successfully moved 95% of our
global workforce to remote working, with 5% exempted operations
working under best-practice CDC protocols, with the priority being
employee wellbeing and the health of the communities in which we
operate. The company rapidly moved to new digital engagement
models with customers and deployed technology solutions for
customers to remotely support offshore operations. For
example, Marlin™ SmartPort is being used by port staff to control
port operations from home, and our Software group launched a fully
remote "smart operations" navigation and simultaneous operations
offering for E&P customers to remotely oversee their offshore
operations.
The company is now finalizing further cost mitigations to
address these uncertain times and position ION to remain agile
while continuing to uniquely support customer needs.
About ION
Leveraging innovative technologies, ION delivers powerful
data-driven decision-making to offshore energy, ports and defense
industries, enabling our 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; and political, execution, regulatory, and currency risks.
These risks and uncertainties also include risks associated with
the WesternGeco litigation and other related proceedings. We cannot
predict the outcome of this litigation or the related
proceedings. For additional information regarding these
various risks and uncertainties, including the WesternGeco
litigation, 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