ION Geophysical Corp. (IO), a company providing data-driven decision-making to offshore energy, ports, and defence industries globally, has declined 5.05% in the premarket trading session, and is trading at $2.07 at the time of this writing. On Monday, IO stock closed the day at $2.18 after surging a massive 56.83% during regular trading hours. The phenomenal increase has come after the announcement of preliminary third quarter 2021 record revenue.
Expectations about Q3 2021 revenue
IO announced on Monday that it expects the third quarter of 2021 revenues to be in the range of $44-$45 million. That’s an increase of 125% sequentially and 175% from the same period of 2020. Apart from that, the company could report a significant sequential improvement in Q3 2021. The company further said that its total liquidity improved to about $35 million. It included $24 million of cash and cash equivalents and $11 million of available borrowing capacity. Further, the E&P backlog is estimated to be about $12 million. The third phase of the Mid North Sea High 3D multi-client program strengthened that backlog program. The company initiated the program in September. Chris Usher, ION’s President, and CEO, stated that the revenue increase was consistent with the company’s expectation of continually building the momentum. He further said that the company is making efforts to secure a multi-million dollar digitization project of port management and it has made good progress in that regard.
Developments related to IO platform Marlin SmartPort
On 14th October, IO announced that its climate support platform, namely Marlin SmartPort™, was featured in a British Ports Association Program, Gateways to Growth. The program highlighted the vital contribution of the ports toward the societies. Marlin SmartPort enables operations to be safer and smarter. Besides, it aims at making the port hub of environmental transition by digitization process as well as connecting stakeholders to the critical data. Apart from that, the company launched two new Marlin SmartPort Modules. One of them, Agent Portal, enables agents and vessels. Agent Portal could access a plethora of real-time information and directly book port calls. The other, billing management module, captures a timestamp of all billable activities that could integrate into an existing financial system.
What’s next for IO?
During the previous quarter, IO has surged more than 40%. The continuous improvement in oil prices after the mitigation in effects of the pandemic is the prime mover behind the development. With the increasing energy demand, the energy-related stocks, including IO, could flourish in the future.
