Geospace Technologies secures Petrobras contract for reservoir monitoring

Published 16/06/2025, 21:46
Geospace Technologies secures Petrobras contract for reservoir monitoring

HOUSTON - Geospace Technologies Corporation (NASDAQ:GEOS), a small-cap technology company with a market capitalization of $88 million, has been awarded a multi-year contract by Petrobras to supply and install its OptoSeis Permanent Reservoir Monitoring (PRM) system at the Mero Fields 3 and 4 in Brazil, according to a company press release. According to InvestingPro analysis, the company is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the energy technology sector.

The contract, which begins this month, covers the deployment of nearly 500km of monitoring equipment across 140 square kilometers of seabed in the Santos Basin, located 180 kilometers off the coast of Rio de Janeiro.

The agreement includes engineering, procurement, construction, and operation of the OptoSeis PRM system, with installation to be completed by Blue Marine Telecom, a Brazilian subsea cable company.

The system will monitor and optimize oil production from the Mero field, which is operated by a consortium led by Petrobras in partnership with Shell Brasil, TotalEnergies, CNODC, CNOOC, and Pré-Sal Petróleo S.A.

"We are delighted to be selected by Petrobras and their partners as the technology of choice," said Rich Kelley, CEO and President of Geospace, in the statement.

The OptoSeis technology was acquired by Geospace in 2018 from PGS. According to the release, the system was previously deployed as "the world’s first deepwater PRM system" on the Jubarte field over a decade ago.

Geospace Technologies, headquartered in Houston, specializes in sensing technologies and instrumentation for energy exploration and other industries. The company employs more than 450 people globally and maintains a healthy current ratio of 5.59, indicating strong short-term liquidity. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Geospace Technologies reported a challenging second quarter for fiscal year 2025, with revenue declining to $18 million from $24.3 million the previous year. The company posted a net loss of $9.8 million, or $0.77 per diluted share. Despite the overall revenue dip, the Smart Water segment achieved record revenue growth, indicating potential for future recovery. The company did not provide specific revenue guidance for the coming quarters but expressed optimism about stronger performance in Q3 and Q4, particularly in the Smart Water segment. In a strategic move, Geospace Technologies also unveiled a new brand identity, marking a shift towards high-margin, scalable markets. This rebranding effort aligns with the company’s diversification goals, aiming to generate future revenue exceeding $200 million. The company remains focused on strategic cost-cutting and supply chain optimization to navigate its current challenges.

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