Ion Geophysical Corp. (IO) stock prices dip by 0.71% as of the market closing on October 16th 2021. This brought the price per share down to USD$1.39. subsequent premarket fluctuations have seen the stock surge by 51.80%, bringing it up to USD$2.11.
Expected Financial Improvements
October 18th 2021 saw IO stock announce that it expects revenues for the third quarter of fiscal 2021 to be in the range of USD$44 million to USD$45 million. This represents an increase of roughly 125% as compared to the prior quarter and a 175% increase from the prior year period. The company also anticipates a substantial improvement in Adjusted EBITDA for the third quarter of fiscal 2021 in the range of USD$21 million to USD$22 million.
Solid Liquidity Position
At the end of the quarter, the company reported a promising liquidity position, with an improved total liquidity of roughly USD$35 million. This total comprised of USD$24 million in cash, which included net revolver borrowings in the amount of USD$19 million. The other USD$11 million was available to the company in borrowing capacity as a part of its revolving credit facility. E&P Technology & Services is expected to be USD$12 million, having been bolstered by the third, fully underwritten Phase of the company’s Mid NorthSea High 3D multi-client program, which it launched in September 2021.
IO Stock Builds on Success
The increased revenues for the third quarter of fiscal 2021 are in line with the IO stock’s forecasts of momentum continuing to build throughout the fiscal year 2021. Both segments of the business reported stronger sales, but the increase is largely driven by the execution of the company’s 3D strategy. Despite the headwinds faced over the course of the year, the company has been able to increase its multi-client market share by almost 50%. This was facilitated by the company’s continued focus on new 3D assets, as evidenced by more than 50% of the quarter’s revenue having been generated by 3D data sales. These sales were conducted by two new acquisition campaigns in the North Sea, as well the company’s artfully remastered reimaging program offshore of Brazil.
Future Outlook for IO Stock
IO stock is poised to maintain the momentum it has managed to generate over the course of the fiscal year 2021 so far. The company is keen to push for the continued trajectory of success it has enjoyed recently. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal effectively. This is hoped to facilitate consistent and organic growth in shareholder value over the long term.