ION Geophysical Corporation (NYSE: IO) is engaged as a data-driven offshore energy and maritime operations company that provides clients access to innovative data, software and distinctive analytics. Shares of the technology company are soaring 48% through early trading on Monday, October 18, 2021. Over the past three months, ION Geophysical has seen average daily volume of 1.11 million shares. However, volume of 61.11 million shares or dollar volume of $121 million, has already exchanged hands through early trading Monday.
Shares of ION Geophysical Corporation are rallying after the company announced preliminary third quarter 2021 revenues, which are estimated to come between $44 million and $45 million. The estimates represent year-over-year growth of 175% and subsequent growth of 125%. Adjusted EBITDA for the third quarter 2021 is estimated to come in between $21 million and $22 million.
As of the end of September 2021, ION Geophysical listed total liquidity at $35 million. Cash holdings were listed at $24 million and $11 million balance remaining from a revolving credit facility.
ION Geophysical is seeing growth come from its successful 3D program. The company says its Mid North Sea High 3D multi-client program, which launched in September, already has a backlog estimated to be around $12 million.
“Third quarter revenues increased significantly, consistent with our expectations of momentum building as the year progresses,” said Chris Usher, ION’s President and CEO. “While both segments of our business demonstrated stronger sales, the increase is primarily attributable to execution of our 3D strategy. Despite the challenging backdrop, we have been able to increase our multi-client market share by approximately 50% through a purposeful focus on new 3D assets. More than half of the revenue generated this quarter stemmed from 3D data sales, both from the two new acquisition campaigns in the North Sea as well as our immense, artfully remastered reimaging program offshore Brazil. We are accelerating efforts to secure large-scale multi-million-dollar maritime digitalization projects for port management, maritime monitoring, and energy logistics while deferring longer-wavelength defense and port security ambitions. Our team has also made good progress towards the $15-20 million annual cost savings target we announced in August, building on the over $40 million eliminated in 2020.”
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