ION Geophysical Corporation (IO) shares surged 21.57% in after-hours on Thursday, July 15, 2021, and closed the day at $1.86 per share. Earlier in the morning session, IO’s stock lost 6.71% to close Thursday’s normal trading session at $1.53. IO shares have fallen 38.06% over the last 12 months, and they have moved down 13.07% in the past week. Over the past three months, the stock has lost 30.77%, while over the past six months, it has shed 49.67%.
Let’s discuss IO recent news and developments briefly.
Q2 2021 preliminary financial results announcement
On July 15, 2021, ION Geophysical Corporation announced a preliminary financial outlook for the second quarter of 2021.
The Company expects second quarter 2021 revenues to be approximately $20 million, which is a 40% improvement if we compared it with Q2 2020.
The company’s total liquidity will be approximately $33 million consisted of $27 million of cash (including net revolver borrowings of $20 million) and approximately $6 million of remaining available borrowing capacity under the revolving credit facility at the end of the 2nd quarter of 2021.
New Board members
On June 30, 2021, ION Geophysical Corporation announced the election of Mr. Mark Doran and Mr. Gary Pittman to its Board of Directors, effective June 28, 2021. Each was also appointed to the Audit Committee of the Board.
Commencing phase 2 of North Sea 3D multi-client program
On June 03, 2021, ION Geophysical Corporation commenced the second phase of its 11,000 sq km North Sea 3D multi-client program in partnership with Shearwater.
ION is using digital technologies to acquire the survey in a more environmentally conscious manner. The company is using Marlin™ and Orca® software, ION incorporated impacts from ocean currents into the survey design to maximize data collection efficiency during the short North Sea summer season while minimizing emissions.
Shell Egypt survey completed by ION and PGS
On June 01, 2021, ION Geophysical Corporation and PGS successfully completed the offshore survey Egypt acquired on behalf of Shell with an innovative Extended Long Offset (ELO) design in combination with ION’s Gemini™ source technology.
Q1 2021 financial results announcement
On May 05, 2021, ION Geophysical Corporation announced its financial results for the first quarter of 2021.
Q1 2021 financial highlights
- ION reported net revenues of $14.0 million in the first quarter of 2021compared to $56.4 million in Q1 2020.
- Total operating expenses were $11.1 million in Q1 2021 compared to $22.0 million in the first quarter of 2020.
- The company suffered a net loss of $7.2 million, or a loss of $0.46 per share in Q1 2021 compared to a net loss of $2.3 million, or a loss of $0.16 per share in the first quarter of 2020.
- Adjusted EBITDA was $6.6 million in Q1 2021 compared to $23.1 million in Q1 2020.
Conclusion
The improved revenue indication for the second quarter was the reason behind its surge in the after-hours on Thursday and it can end the weekly trading by continuing its surge on Friday as well.
