SAExploration Rips Higher After Announcing $100M Marine Project

SAExploration Holdings, Inc. (NASDAQ: SAEX) is an oilfield services company that offers seismic data and logistical support services to environments all around the world.

What Happened

The company announced Wednesday afternoon a letter of award surrounding a new award project. Located in South Asia and valued at roughly $100 million, the project is expected to start towards the end of 2018 and into 2019 and will be performed using ocean bottom recording technology.

Why It’s Important

This funded marine project will likely lead to new advancements in oilfield services like program design and planning and environment assessment. SAExploration will have the ability to further international exposure to South Asia and beyond.

What’s Next

“Of the total project amount, approximately 70% of the revenue is expected to be pass-through revenue related to a large subcontractor. Any pass-through revenue will be at cost with no margin to SAE,” a press release said.

“Additionally, the timing and outcome of the project is dependent on SAE entering into the final contract with the customer and on various factors beyond the Company's control, such as weather delays, which could cause actual results to differ materially.”

The stock closed Wednesday at $10.69 per share and spiked as high as $29.17 in the after-hours trading session.

Shares were up about 11 percent to $11.88 shortly after Thursday's opening bell.

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