EMGS CEO Disappointed with Financial Performance

EMGS delivered revenues of USD 44.4 million in the second quarter 2013, up from USD 31.7 million in the previous quarter and down from USD 57.1 million in the corresponding period last year.

USD 14.8 million of the revenues came from multi-client sales. The Company had an EBITDA of USD 13.2 million and reported a net loss of USD 1.6 million. During the quarter, EMGS refinanced and issued a new unsecured bond loan of NOK 350 million.

“Although we are disappointed with our financial performance in the first half of this year, we are encouraged by our significantly improved backlog, the multi-client investments we have made in Brazil and the Barents Sea, as well as strong multi-client late sales,” says CEO of EMGS, Roar Bekker.

Through the quarter, EMGS secured a major contract with PEMEX worth USD 99.8 million. Further, EMGS secured a contract extension in Asia worth USD 15 million and entered into a cooperation agreement with TGS to develop joint multi-client projects in north-western Europe.

Based on the results for the first half year, the high dependency of multi-client late sales in the second half of 2013 as well as contract opportunities which have been delayed to 2014, EMGS adjusts its revenue guiding to USD 170- 200 million and widens its EBITDA margin range to 20-30% for the full year. The Company’s long-term outlook remains unchanged.

[mappress]

Press Release, August 22, 2013