EMGS sees sharp increase in 1Q vessel utilization

Norwegian geophysical services player Electromagnetic Geoservices (EMGS) experienced a sharp increase in vessel utilization during the first quarter of 2017 compared to the prior-year period. 

EMGS informed on Wednesday that its vessel utilization for the first quarter 2017 was 92% compared with 55% for the first quarter in 2016.

Specifically, in the first quarter of 2017, the company’s vessels were allocated 92% to multi-client projects while no time was spent on contract work. In the comparable quarter of 2016, the vessels were allocated 29% to contract work and 26% to multi-client projects.

EMGS recorded six vessel months in the first quarter of 2017, this includes three months when Thalassa was laid up. In the first quarter 2016, the company recorded 4.8 vessel months.

Vessel activity 

The Atlantic Guardian has acquired data on a prefunded multi-client survey in the Barents Sea from the beginning of November to the beginning of March. Following that, the vessel started another multi-client survey in the Barents Sea which is expected to be completed in late April.

The BOA Thalassa completed a contract in Malaysia on January 1. The vessel has been idle at a reduced rate after the contract work in Malaysia. To remind, EMGS in January agreed with the owner of the vessel to a reduction of the charter hire rate by approximately 20%.

The days where the vessel is laid up are not included in the utilization number. The vessel’s utilization for the first quarter was 0%.

For the first quarter 2017, the company expects to record approximately $3 million in multi-client revenues.