EMGS’ Fourth Quarter Results Up

Electromagnetic Geoservices ASA’s (EMGS) reported revenues of USD 44.9 million in the fourth quarter 2013, up from USD 23.6 million in the previous quarter and in line with the USD 45.0 million reported for the fourth quarter of 2012.

Contract sales totaled USD 40.1 million, while multi-client sales came in at USD 4.8 million this quarter. The Company had an EBITDA of USD 6.5 million and a net profit of USD 1.3 million.

The Company had two vessels operating on the contract for PEMEX in the quarter. Further, the Company completed surveys for Nippon in Malaysia, Maersk in Angola and a large regional survey for Shell in Brunei in the quarter. A new contract was secured for Apache in Australia.

After the end of the quarter, the Company has entered into a major agreement with North Energy and signed a global framework agreement with Shell. In addition, the Company has received acquisition permits for an extended part of the Barents Sea, including the newly opened southeastern area.

“The Barents Sea has really become a great showcase for us. We have an excellent track-record on drilled wells in the area. In addition, the extension of our partnership with TGS, the new agreement with North Energy and the nominations for the 23rd round are all key drivers for exciting future opportunities,” says CEO of EMGS, Roar Bekker.

Going into the 2014, EMGS is in a better position than at the same time last year. The Company’s backlog is improved and the Company’s strong technology track record is continuously creating increased market awareness. Based on the current operational forecast, the Company expects to deliver 2014 revenues of more than USD 200 million.

EMGS’s long-term outlook is positive and the Company reiterates its strategy to achieve industry-wide integration of EM into the exploration workflow.

Press Release, February 06, 2014; Image: EMGS