STOCKS TELEGRAPH

Tag: ION Geophysical

  • 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.

  • ION Geophysical Corporation (IO) stock soared in the recent trading session: here’s why

    ION Geophysical Corporation (IO) stock soared in the recent trading session: here’s why

    ION Geophysical Corporation stock recently traded at $2.61 which is a 22.17% upward movement. The IO stock previously closed at $2.12.

    The +20% rise in the IO stock at the time of writing, can be explained by the recent announcement that that IO is all set to initiate Phase 2 of the survey program.

    What do companies like ION Geophysical Corporation exactly do?

    When Oil and & Gas companies want to perform surveillance operation in the offshore and maritime regions they bring in companies like ION. ION Geophysical Corporation provides services and solutions for the global oil & gas industry by delivering powerful data-driven decision making through innovative technologies. IO provides optimized investment decision for clients through hi-tech analytics, data, and result for maritime surveys, expeditions, and other services.

    ION has commenced the North Sea 3D survey

    The commencement of the North Sea 3D multi-client survey program’s second phase will cover the sections of the UK Continental Shelf which have not been properly surveyed and examined before. The initial phase of the program started in August of 2020 and had added additional underwriting as well acreage was awarded within the survey area. This brings up incentives for the program to go into the second phase and increase its multi-client base.

    The new set of data will be collected from approximately late April to mid-October and cover. It is located in a highly rich hydrocarbon province. What is already positive about the Mid North Sea High exploration was that the data collected has attracted many recent play-opening wells. These play-opening wells also come along with attractive price tag for their development.

    What will the second phase incorporate?

    IO has planned to cover a massive area almost 6 times compared to the size covered in the initial phase. The 11,000 sq km area coverage is planned to be covered significantly in the coming summers. ION Geophysical Corporation is excited to use Shearwater GeoServices. The acquisition technology of Shearwater will complement ION’s subsurface images produced through imaging. This will please the clients for in-depth insight in the offshore zechstein.

    The North Sea’s summer seasons are short which is why the ION Optimization Services team will use the resource of its most latest and effective software called MarlinTM and Orca®. The two softwares will allow the team to extract data from the Ocean currents and nearby activities which will help keep the second phase on track for delivery in Q2 2022.

    The significance of 3D data survey for IO’s stock performance

    ION Geophysical Corporation is actively participating in the 3D new acquisition multi-client market as it had planned to do. This will boost the operations and the performance of the IO stock.  The IO stock performance improvement is expected to be better than the boost during its initial phase for 2 reasons. One is that the success of the initial phase allowed the clients to gain trust and looked forward to the results of a second expedition. Second, the survey is a significantly bigger expedition than the initial one and also more extensive than any 3D data nearby.