EMGS: Reports Growth in 2Q Revenues (Norway)

EMGS recorded revenues of USD 57.1 million in the second quarter of 2012, up from USD 47.6 million in the second quarter of 2011. Contract sales totalled USD 49.6 million, whilst multi-client sales came in at USD 7.5 million.

In the corresponding period last year, EMGS recorded multi-client sales of USD 6.4 million. The growth in revenues is related to an increase in the vessel fleet as well as improved productivity. The company recorded 10.3 vessel months in the second quarter of 2012 as opposed to 8.0 in the second quarter of 2011.

Revenues for the first half year of 2012 came in at USD 112.6 million compared with USD 69.1 million for the first half year of 2011. The growth in revenues is related to an increase in the vessel fleet as well as improved productivity.

Charter hire, fuel and crew expenses totalled USD 17.2 million in the second quarter of 2012, up from USD 16.8 million in the corresponding quarter in 2011 owing to an increase in the vessel fleet in 2012.

For the first half year of 2012, charter hire, fuel and crew expenses came in at USD 38.2 million, up from USD 27.3 million in 2011.

Capitalisation of multi-client costs amounted to USD 5.6 million in the second quarter of 2012, and USD 9.7 million for the first half year. No capitalisation was recorded in the first half of 2011.

Employee expenses increased from USD 9.4 million in the second quarter of 2011 to USD 12.2 million in the second quarter 2012 owing to high operational activity, as reflected in the higher revenues.

Employee expenses for the first half year were USD 26.0 million and USD 19.3 million in 2012 and 2011 respectively.

Other operational expenses increased from USD 4.8 million in the second quarter last year to USD 5.3 million in 2012.

For the first half year 2012, other operational expenses came in at USD 10.0 million, up from USD 9.3 million in 2011.

Recent events

On 2 August, EMGS signed a contract worth approximately USD 7 million with a major international oil company to provide 3D EM acquisition and processing services in the Asia Pacific region. EMGS reported that data acquisition will be performed from the vessel EM Leader and is expected to commence in early September.

On 16 August, EMGS received a Letter of Award for a contract worth approximately USD 20 million from a major international oil company to acquire 3D electromagnetic (EM) data offshore Brunei. The company reported that data acquisition will be performed from the vessel EM Leader with start-up in the fourth quarter of 2012.

“We are pleased to have delivered yet another strong quarter and the best first half year results in the company’s history, driven by our strong operational performance and high vessel utilization,” says Roar Bekker, EMGS chief executive officer.

[mappress]

Press Release, August 23, 2012