QUOTE AND NEWS
SeekingAlpha  Jul 1  Comment 
By Patrick Mork: Watching the Google (GOOG) IO keynote was a bit like watching a steamroller: the stats just kept coming and Android's unstoppable march continued. While by some measure Android's global smartphone share is near or above 80%, here...
TechCrunch  Jul 1  Comment 
 Keen IO, a startup that helps developers build their own analytics products, is announcing that it has raised $11.3 million in Series A funding. Co-founder and CEO Kyle Wild told me that when the company started talking about raising more...
SeekingAlpha  Jun 27  Comment 
ByMark Hibben: The lack of any new hardware announcements at Apple's (AAPL) WWDC forced tech bloggers to play detective, sifting through clues to come up with a reasonable hypothesis about Apple's forthcoming products. No such detective work was...
SeekingAlpha  Jun 26  Comment 
(click to enlarge) There's lots that was interesting in this year's Google (GOOG, GOOGL) IO, and...
TechCrunch  Jun 25  Comment 
 Another protestor stood up in the middle of Urs Holzle’s demo during Google IO and yelled, “You all work for a totalitarian company that builds robots that kill people!” The protestor was not wearing a badge. We’re currently working on...
Cloud Computing  Jun 10  Comment 
Savage IO today announced that its DataBrick Converged Storage Server has been selected by Collective[i] to deliver the high performance, scalability and low-latency required to manage the back-end processing for their high speed data analytics...
SeekingAlpha  Jun 6  Comment 
By David Hernandez: Ion Geophysical (IO) is shifting focus away from products and focusing more on services. This shift is and will continue to hinder Ion's total revenue growth for several quarters. Ion will need their service revenue to offset...
DailyFinance  Jun 5  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/04/14 -- INCA ONE RESOURCES CORP. (TSX VENTURE: IO) ("Inca One" or the "Company") announces that pursuant to the Company's Stock Option Plan, the Board of Directors has authorized the granting...
DailyFinance  Jun 4  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/04/14 -- INCA ONE RESOURCES CORP. (TSX VENTURE: IO) ("Inca One" or the "Company") announces that pursuant to the Company's Stock Option Plan, the Board of Directors has authorized the granting...
Cloud Computing  May 12  Comment 
OpenStack Summit – PLUMgrid, the leader in Virtual Network Infrastructure (VNI) for public and private clouds, and Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end...




 
TOP CONTRIBUTORS

Introduction

Ion Geophysical Corporation (NYSE: IO) provides seismic technology to help E&P operators and contractors generate high-resolution images beneath the surface. Ion offers both land and marine acquisition systems and is based has offices in the United States, Canada, Latin America, Europe, Africa, Russia, China and the Middle East. Demand for oil drives Ion's bottom line. When there is high oil prices, clients are more likely to increase exploration plans. In 2010, Ion's revenues was $444.3 million and its net loss was $38.77 million.[1]

Business Growth

With North American production recovering from the BP oil spill, Ion has been looking to expand overseas. 60% of Ion's revenue comes from outside North America. In particular, the launch of INOVA, a joint venture with Ion and BGP, a subsidiary of China National Petroleum Corporation, will be a strong driver of their growth in the future.

Trends and Forces

Declining Reserves and Cyclicality

With energy demand held relatively stable and declining reserves, E&P companies need and are finding it even harder and more difficult to extract hydrocarbons. As E&P operations become more complex, there is an increased need for sophisticated seismic acquisition technology. One of these untapped regions is the Arctic, which has been relatively unexplored and E&P companies will need a lot of seismic data to assess the potential of projects.[2] Oil shale opportunities is increasing and will utilize Ion's technology. Almost 60% of new U.S. onshore natural gas production is now coming from the shale gas plays.[3]

Political turmoil and regulation

This industry is extremely sensitive to geopolitical events. In October 2010, the US Department of Interior ended the six-month moratorium on certain drilling activities in the Gulf of Mexico after the Deepwater Horizon rig explosion. The government is also expected to issue new safety and environmental guidelines and regulations for offshore operations, which will drastically increase the cost of exploration and production. The permitting process for the gulf has also slowed and has reduced E&P activity and Ion's sales of marine seismic equipment in the region.

In addition, political turmoil in Libya caused the cancellation of two multimillion dollar contracts. Another deal with an Iraqi customer closed, but actual shipping was delayed due to the uncertain political environment.[4]. Although unrest in the Middle East tends to increase oil prices, ION has suffered because traditionally 10% of its revenues comes from that region.

Competition

  • CGGVeritas is a French-based manufacturer of geophysical equipment and a provider of a range of services, including seismic data acquisition, to E&P companies. The company had revenues of $758 million in 2010.
  • Geokinetics is headquartered in Houston, TX and provides seismic data acquisition services to companies worldwide. The company had revenues of $558 million in 2010.
  • TGC Industries provides seismic data acquisition services throughout the US and Canada. TGC has six seismic crews, four in the United States and two in Canada, and revenues of $108 million in 2010.
  • Schlumberger supplies technology, integrated project management and information solutions to the international oil and gas exploration and production industry. One of their five business segments, WesternGeco, provides seismic data acquisition, to E&P companies. In 2010, the company had revenues of $8.7 billion.
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