EMGS reports fourth quarter 2016 results Elect
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Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 12.0 million in the fourth quarter 2016, down from USD 20.5 million in the fourth quarter 2015 and up from USD 4.5 million in the third quarter 2016. Contract sales totalled USD 8.0 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 29.4 million in the fourth quarter last year to USD 14.3 million this quarter. EBITDA ended at negative USD 2.1 million, up from negative USD 8.0 million in the fourth quarter 2015. Free cash decreased with USD 1.7 million from the previous quarter. During the quarter, the BOA Thalassa worked on the announced contract in Malaysia. Atlantic Guardian has acquired data on multi-client projects in the Barents Sea. "We continue to be challenged by a market in which cost controls, reduced spending and reduced activity take center stage. However, technology improvements, the cost reduction program and an overall organisational realignment, as announced over the course of the year, have put us in a much better position going forward." says CEO of EMGS, Christiaan Vermeijden. Please find the full report for the fourth 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. Contact Hege Veiseth, CFO, +47 99 21 67 43 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 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.
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