Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the second quarter of 2020 are attached.
Highlights:
* The Company recorded revenues of USD 7.5 million, down from USD 14.5 million in the second quarter of 2019 and down from USD 11.3 million in the first quarter of 2020.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of negative USD 2.0 million, down from USD 2.1 million in the second quarter of 2019.
* Free cash decreased with USD 6.2 million during the quarter, to USD 9.8 million.
* A renegotiated charter party agreement for the Atlantic Guardian has been agreed. Amongst other changes, as part of the renegotiated charter party agreement, the day rate applicable while the vessel is cold stacked (for a period not to exceed 12 months) is significantly reduced, leading to an aggregate reduction in the Company’s operational cost base for the period June through December 2020 of more than USD 1.5 million. The firm period of the charter party agreement is extended by 12 months, with a new expiry of the firm period in October 2022.
* During the quarter, the Petrel Explorer completed acquisition of two multi-client surveys on the Norwegian continental shelf. Following completion of these surveys, the vessel was demobilised and returned to the vessel owner. The Atlantic Guardian completed transit to Norway for cold stacking.
The results will be presented at 10:00 (local time Norway) today. The presentation will be held by CEO Bjørn Petter Lindhom and CFO Anders Eimstad and will be broadcasted live over the Internet. The webcast can be accessed on www.emgs.com. It will be possible to post questions through the webcast.
Contact
Anders Eimstad, Chief Financial Officer, +47 94 82 58 36
About EMGS
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. EMGS supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The Company's services enable the integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency and reduces risks and the finding costs per barrel.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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