EMGS Reduces Loss
- Business & Finance
Norwegian geophysical services company EMGS posted loss for the first-quarter 2017 of $10.5 million, improving from $15.5 million loss in the same period last year.
The Oslo-listed company generated revenues of $3.9 million in the first quarter 2017, down from $13 million in the corresponding period in 2016 and from $12 million sequentially.
The company reported vessel utilisation of 92 per cent for the quarter. The vessel BOA Thalassa has been laid up since January, and Atlantic Guardian carried out multi-client projects in the Barents Sea. EMGS said it has agreed to a reduction of the charter hire rate for BOA Thalassa by approximately 20 percent.
EMGS secured backlog of $4.5 million at the end of the Q1 2017, compared with a backlog of $7.0 million same time last year.
“The industry has announced another decrease, albeit relatively modest, in E&P spending for 2017. However, EMGS has noted an increase in commercial activity, and with a reduced cost base and the announced rights issue, the company is well positioned going forward.
“The company expects that the 24th licensing round will trigger some additional sales in Q2 and Q3 2017. Otherwise, marketing efforts are ongoing to secure backlog in Asia and the Americas,” EMGS said in Q1 earnings report.
Subsea World News Staff