EMGS: Vessel utilization in 2Q 2016 at 76pct. ‘EM Leader’ charter terminated

July 5, 2016

Electromagnetic Geoservices ASA (EMGS), an Oslo-listed marine seismic acquisition company, has reported an increase in vessel utilization for the second quarter of 2016, however with fewer vessels in operation than in the same period last year.

Vessel utilization for the second quarter 2016 came in at 76% compared with 68% for the second quarter in 2015.

In the second quarter of 2016, the company’s vessels were allocated 76% to multi-client projects. No vessel capacity was spent on contract work. In the
comparable quarter of 2015, the vessels were allocated 5% to contract work and 63% to multi-client projects.

EMGS had two vessels in operation in the second quarter 2016, thus the company recorded 6.0 vessel months in the quarter. In the second quarter 2015, the
company had four vessels in operation and recorded 10.5 vessel months.

Vessel activity

The BOA Thalassa started acquisition on a multi-client project west of India on March 12. The project was completed on April 16, and the vessel has been laid up at a reduced rate since May 1. The vessel’s utilization for the second quarter was 51%.

The Atlantic Guardian began a multi-client project in the Hammerfest Basin on March, 10. The project was completed on April 26. Following the project in the Hammerfest Basin, the Atlantic Guardian acquired multi-client data in the Norwegian Sea from April 29, to May 15.

The vessel then started a multi-client project in the North Sea May 29, and this was completed on June 24. The Atlantic Guardian then started its transit back to the Fosen shipyard for the rigging of the Joint Industry Project (JIP). The vessel’s utilization for the second quarter was 85%.

The EM Leader vessel has been laid up since May 15 2015. During the second quarter, EMGS and the owner of the EM Leader vessel, Euro Trans Skips AS, agreed to terminate the vessel’s charter agreement as of 1 June 2016, to the commercial benefit of both parties, the company said.

Also, EMGS said it expects to record $15 million in multi-client revenues for the second quarter 2016.