Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 4.5 million in the third quarter 2016, down from USD 16.3 million in the third quarter 2015 and from USD 15.1 million in the second quarter 2016. Contract sales totalled USD 0.5 million, while multi-client sales amounted to USD 4.0 million. The Company has reduced its quarterly cost base, consisting of all operational costs including multi-client investments, from USD 34.1 million in the third quarter last year to USD 14.2 million this quarter. EBITDA ended at negative USD 6.2 million, up from negative USD 10.0 million in the third quarter 2015. Free cash decreased with USD 5.5 million from the previous quarter.
During the quarter, the Atlantic Guardian has completed the JIP field test and acquired data on multi-client projects in the Hammerfest basin and in the Barents Sea. BOA Thalassa has been laid up at a reduced rate since 1 May.
"We are being challenged by a very difficult market wherein opportunities are being pushed back as the oil industry is re-adjusting its level of spending. The reduction in the Company's cost base, as announced in October, will put us in a stronger position going forward. The provisional award in Asia has provided the Company with some increased confidence, but the outlook remains uncertain." says CEO of EMGS, Christiaan Vermeijden.
Please find the full report for the third quarter 2016 enclosed. The results will be presented at 10:00 CET today at the Company's premises in Dronning Mauds gate 15 in Oslo. The presentation will be published at 09:30 CET.
Hege Veiseth, CFO, +47 99 21 67 43
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 offices in Trondheim, Oslo, Houston, Villahermosa, Rio de Janeiro and Kuala Lumpur.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.