Magseis Fairfield reports positive quarter despite node handler downtime

Magseis Fairfield has reported a revenue of $99.3 million for the third quarter of 2022, up from $84.3 million in Q3 2021, despite technical downtime on a node handler and delayed start-up of a project.

Revenue for the first three quarters of 2022 amounted to $277.9 million, compared to $185.9 million in the same period last year, representing an increase of 49%.

In Q3 2022, Magseis Fairfield reported an EBITDA of $8.2 million, a decrease from the $19.7 million announced for Q3 2021.

The Norwegian company said that the improved financial performance comes despite technical downtime on a node handler on the ZXPLR1 crew in the US Gulf of Mexico which had some idle time as it transitioned to a new project.

The company added that acquisition activity was high throughout the quarter with July reaching an all-time high and the North Sea season was successfully completed for all crews working in the region.

At the end of Q3 2022, the order backlog was $306 million, up from $182 million reported at the end of the second quarter of 2022.

“The high activity in the quarter reflects the improved market. Magseis Fairfield is demonstrating leadership as the clear market leader in the OBN market and remains focused on improving contract terms and conditions to balance risk in the current market,” said Carel Hooijkaas, CEO of Magseis Fairfield.

During Q3 2022, Magseis Fairfield secured its largest acquisition contract ever, for ExxonMobil in Guyana, lasting for at least 14 months using ZXPLR technology, which began in Q4.

Magseis Fairfield forecasts a market that will exceed $1 billion in 2023, supported by the increased tendering activity and the fact that contracts worth approximately $800 million have been awarded for execution next year.

The company concluded that the Greensand Carbon Capture and Storage project in Denmark continues to progress as planned, with engineering ongoing and project execution expected by the end of the year.

“We have also executed a carbon capture and storage (CCS) pilot project in the North Sea this quarter. We are now processing the data and will use these results in our sales and marketing efforts in this exciting new market. We continue to focus on renewables opportunities across both North America, Europe, and Asia,” Magseis Fairfield said.

In terms of the acquisition by TGS announced in June, TGS has now acquired more than 75% of the Magseis Fairfield shares.