Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 32.3 million in the first quarter 2015, down from USD 52.5 million in the fourth quarter 2014 and from USD 61.3 million in the first quarter last year. Contract sales totaled USD 22.1 million, while multi-client sales were at USD 10.2 million this quarter. The Company had an EBITDA of USD 7.2 million and a net loss of USD 1.1 million.
The EM Leader operated for BG Group in Uruguay the entire first quarter, while the three other vessels acquired multi-client data in the Barents Sea, the US Gulf of Mexico and in Indonesia, all considered important basins for EMGS going forward.
"The current market is challenging and our contract revenues for the first quarter is lower than expected. We experience delays in contract negotiations and our backlog is limited. We have initiated cost reduction measures and are prepared to take additional action if necessary. However, we have a unique technology, solid financial position, flexible business model and growing multi-client libraries that we believe position us for future growth in the longer term," says CEO of EMGS, Bjarte Bruheim.
The low oil price and the associated cautious spending behavior among oil companies result in reduced or deferred commitments and the market outlook continue to be uncertain. EMGS will utilise its flexible cost structure to adjust its cost level to the shifting market conditions.
Please find the full report for the first quarter 2015 enclosed. The first quarter results will be presented at 10:00 CET today. The presentation will be published at 09:30 CET.
Contacts
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
