EMGS Cuts Loss by Over 50%
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.
The company reported loss of USD 11.1 million compared to USD 25.4 million in the third quarter 2015.
Contract sales totaled 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.
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 May 01, 2016.
“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,” said Christiaan Vermeijden, CEO of EMGS.