Electromagnetic Geoservices ASA (EMGS) reported revenues of USD 41.7 million in the third quarter 2014, down from USD 42.5 million in the second quarter this year and up from USD 23.6 million in the corresponding quarter last year. Contract sales totaled USD 29.8 million, while multi-client sales were at USD 11.9 million this quarter. The Company had an EBITDA of USD 11.0 million and a net income of USD 7.0 million.
The Company had two vessels operating in Norway most of the quarter. The BOA Thalassa started its transit to Asia in the beginning of September, while Atlantic Guardian worked on different projects, including completion of the multi-client project in the Barents Sea. The BOA Galatea spent most of the quarter acquiring data for the multi-client campaign offshore Canada. The forth vessel, the EM Leader, completed the multi-client project called Daybreak in the US Gulf of Mexico in August and commenced a contract for Petrobras late September.
"We are off to a good start in Asia and executing on our plan for this region, where we intend to stay throughout 2015. Our multi-client library in the Barents Sea continues to yield good returns and we expect to see strong late sales towards the end of the year. In addition, we are engaged in numerous negotiations and project plans which will increase visibility into 2015," says CEO of EMGS, Roar Bekker.
After the close of the quarter, the Company has reported one award from an IOC in Malaysia and a letter of intent from the national oil company PTTEP International in Thailand.
Despite the negative sentiment and the current challenges in the oil service industry, the Company still view its full year revenue guiding to be achievable. The revenue for the full year will be dependent on the multi-client late sales in the fourth quarter.
Please find the full report for the third quarter 2014 enclosed, including the presentation of the results.
Contacts
Roar Bekker, EMGS chief executive officer, +47 911 41 149
Svein Knudsen, EMGS chief financial officer, +47 911 41 149
Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59
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.
EMGS operates on a worldwide basis with main offices in Trondheim and Oslo, Norway; Houston, USA; and Kuala Lumpur, Malaysia.
For more information, visit www.emgs.com
