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  • ION Geophysical Corp. (IO) Stock Surging in Premarket, Despite any Clear Reason.

    ION Geophysical Corp. (IO) Stock Surging in Premarket, Despite any Clear Reason.

    ION Geophysical Corp. (IO) is a leading company focused on the delivery of data-driven choice-making to businesses related to offshore energy and maritime tasks. The company enables its customers to improve their investments by accessing the peculiar analytics and software.

    The price of IO stock during the regular trading on January 31, 2022, with a 3.02% incline was $0.46. At last check in the premarket on February 1, 2022, the stock further jumped by 4.91%.

    IO: Events and Happenings

    IO reported about its webinar regarding the crucial topic ‘The Digital Software Interfaces for Seismic Survey Optimization and Remote QC’ on February 2, 2022. On January 14, 2022, IO reported about its entry into a Forbearance and 5th Amendment under its Security and Credit Contract with PNC Bank, National Association. PNC agreed upon the waiver of a cross-default. Additionally, IO also reported about its entry into a contract with its 2025 Noteholders to refrain from imposing their rights till February 15, 2022.

    On December 23, 2021, IO reported the receipt of notification from the NYSE regarding non-compliance with its listing standards. The company was listed below criteria because its market capitalization was not more than $50 million over a 30-day period.

    On December 17, 2021, IO reported about the award of an agreement with a Middle Eastern Exploration and Production company. Additionally, the company also grabbed a Letter of Intent from the East African Ministry of Ports & Maritime Transport for the company’s Marlin digital infrastructure.

    IO: Key Financials

    On November 3, 2021, IO reported its financial results for the third quarter ended September 30, 2021. Some of the key features are as follows.

    Revenue

    Revenue in Q3 2021 was $44.4 million compared to $16.2 million in the same period of 2020. The company recorded a 173% increase in revenue over the period of the year.

    Net Loss per Share

    Basic and diluted net loss per share in Q3 2021 was $0.5 million or $0.02 compared to $16.6 million or $1.16 in the same period in 2020.

    Assets

    The total current assets of the company in Q3 2021 were reported to be $74 million.

    On October 14, 2021, IO reported about the inclusion of its Marlin SmartPort in Gateways to Growth which is the UK’s pioneer Ports Association program.

    Conclusion

    IO stock down-performed in the last few months by 67% due to economic recession as a result of the pandemic. The current premarket surge in the stock is likely the outcome of the company’s announcement of hosting a webinar on digital software interfaces. The financial experts believe that the company is on the right track to develop strong investor relations.

  • ION Geophysical Corp. (IO) Shares Plunge Further on Reports of a Potential Bankruptcy Filing

    On January 27, reports emerged about a possible Chapter 11 bankruptcy filing by ION Geophysical Corp. (IO). Consequently, the stock began cascading in the following trading sessions.

    During regular trading, the stock took a heavy blow of 53.64% loss at its close of $0.51 per share. IO continued to descend in the after-hours with a further loss of 7.84%. Therefore, the stock was trading at $0.47 apiece in the after-hours on Thursday.

    IO’s Possible Bankruptcy Reports

    According to reports on multiple sources including Bloomberg, IO is preparing to sell itself in a court-supervised auction. The company may pursue a Chapter 11 bankruptcy protection in the next month. The Chapter 11 filing will allow the company to continue its operations while working on repaying its creditors.

    Moreover, no official has so far commented on the revolving reports and the discussions about the filing are not final yet. Thus, there is a possibility of change.

    Background

    In April 2021, the company restricted its debts but then it failed to fulfill the interest payment on the new bonds on December 15, 2021. As of last month, the company has missed $12.3 million aggregate in bond principal and interest payments. Resultantly, IO entered into forbearance agreements with most of its creditors till February 15, 2022. The company announced the forbearance along with an amendment to its revolving credit agreement on January 14, 2022.

    Furthermore, during the last quarterly report, the company announced an outstanding long-term debt principal of $142.7 million as of September 30, 2021.

    What to Expect?

    Given the grave situation with IO’s outstanding debt and current cash position, the company might file for Chapter 11 Bankruptcy. While this will provide the company with more time for possible solutions to paying its creditors, it is highly unlikely. The company had previously announced its evaluation of possible alternatives to the problem but so far has been unable to do so. Based on the challenging conditions along with material cash burn, it seems rather difficult for the company to be able to pay its creditors.

    IO’s Financial Analysis

    In Q3 of 2021, IO reported a net loss of $0.5 million ($0.02/share) against $16.6 million ($1.16/share) in Q3 of 2020.

    Additionally, the company had revenues of $44.4 million in Q3 of 2021, showing an increase of 125% sequentially and 173% year over year.

    On September 30, 2021, IO had cash and equivalents of $24.1 million.

    Conclusion

    While the company did report improved revenue and loss per share the situation with its outstanding loan and creditors is very serious. Selling IO stock seems to be in the best interest of the investors based on the current situation.

  • New Developments: ION Geophysical Corp. (IO) stock Soars Pre-Market

    New Developments: ION Geophysical Corp. (IO) stock Soars Pre-Market

    On January 14, ION Geophysical Corp. (IO) announced forbearance and amendment related to its revolving credit agreement. Moreover, the company also announced a forbearance agreement related to its notes due 2025. In addition to this, the preliminary fourth-quarter 2021 revenues were also released. Consequent to the announcement, IO stock surged up in the pre-market.

    In the previous trading session, IO incurred a loss of 1.23% at the closing price of $0.85 per share. Following the announcement, the stock became bullish in the pre-market to gain 47.06%. Resultantly, IO stock was trading at $1.25 apiece in the pre-market.

    The oil and gas industry geoscience technology, services, and solution provider, ION Geophysical Corp. has a market capitalization of $25.17M. Currently, the company has 29.62 million shares outstanding in the market.

    IO’s Forbearance and Amendment

    As per the announcement, the company has entered into a Forbearance and Fifth Amendment with PNC Bank, National Association. Moreover, IO has entered into the forbearance and amendment under its Revolving Credit and Security Agreement (dated August 22, 2014. According to this, PNC has accepted to waive the cross-default that would have occurred under the Credit Agreement through and including February 2022. This default was due to the inability of the company to pay the scheduled interest payment due on December 15, 2021. Further, this interest is due on its 8.00% Senior Secured Priority Notes due 2025 (prior to the expiration of the 30-day grace period).

    Additionally, the company had also entered into forbearance agreements with holders of over 79% of its 2025 Notes until February 15, 2022. As per the agreement, the holders are to forbear from enforcing their rights and remedies arising from the company’s failure to pay the due interest.

    Further, for strengthening its financial position and increasing stakeholder value, IO is working on discussions with PNC, and the holders of its 2025 Notes.

    Q4 Preliminary Revenues

    Along with that, the company also shared its preliminary revenues for the fourth quarter of 2021. Hence, IO expects the Q4 2021 revenues to be $40 million approx., marking a huge increase of 45% year over year.

    NYSE Notice to IO Stock

    On December 23, the company announced receiving a notice from the NYSE regarding its non-compliance with continued listing standards. As per the notice, IO is below the established criteria as its market capitalization has been lower than $50 million over consecutive 30 days. Added to this, the company’s last reported stockholder’ equity was also less than $50 million.

  • Here is why Ion Geophysical Corp. (IO) stock surged in the after-hours on Thursday?

    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.