EMGS: Vessel Utilization in Q2 Down by 3 Percent

Electromagnetic Geoservices ASA (EMGS) has released information on vessel activity and utilisation for the second quarter 2014. 

The Company defines “vessel utilisation” as the percentage of the vessel charter period spent on contracted or multi-client data acquisition.

Vessel utilisation for the second quarter 2014 came in at 75% compared with 78% for the second quarter 2013.

In the second quarter this year, the Company’s vessels were allocated 38% to contract and 37% to multi-client programmes, whereas the allocation was 32% and 46% respectively in the corresponding quarter last year.

EMGS recorded 12.0 vessel months this quarter, compared with 11.5 in the second quarter of 2013.

Vessel activity

The BOA Thalassa completed its work in Morocco on 25 April, after which the vessel moved to Norway to start on a series of smaller contracts in the Barents Sea from 6 May. The vessel’s utilisation for the second quarter was 74%.

The BOA Galatea acquired 3D EM data on the USD 99.8 million contract with PEMEX until 31 May. The vessel then started the planned yard stay including the 5 year class renewal. The vessel’s utilisation came in at 66% for this quarter.

After completing its work on the PEMEX contract on 22 March, the Atlantic Guardian headed to Norway and started on the contract for North Energy in the Norwegian Sea on 19 April. Thereafter the vessel started on the Company’s multi-client campaign in the southeastern part of the Barents Sea, a joint project with TGS. The vessel’s utilisation for the quarter was 64%.

The EM Leader started the multi-client campaign, called Daybreak, late February and spent the full second quarter acquiring data for the campaign in the Alaminos Canyon in southern US Gulf of Mexico. The EM Leader had a utilization of 95% in the second quarter.

Planned activity for EM Leader and BOA Galatea going forward

The BOA Galatea is expected to complete its yard stay on 7 July. The vessel will then head towards Canada to start the multi-year, multi-client campaign. As announced on 7 May, EMGS has an agreement with Nalcor Energy, the Provincial Energy Corporation of Newfoundland and Labrador, which includes financial support of the survey. Additional funding is expected, and will determine how much of the multi-year campaign that will be covered in 2014.

On 27 June 2013, the Company entered into a USD 100 million contract with PEMEX. The contract has a total duration of 3 years. As of 30 June 2014, USD 18.5 million remains of the contract, in addition to 2x USD 25 million options for extension. The Company expects to start working for PEMEX again during the fourth quarter 2014.

The EM Leader will shortly complete the first phase of the Daybreak campaign, which has covered a total of 120 blocks. The campaign has been fully supported by industry funding. Following a short yard stay, the vessel will be heading towards Asia in late July. The Company has developed a portfolio of promising prospects in Asia and expects to retain a vessel in this region throughout 2015. It is expected that the vessel will be ready for projects in Asia from the fourth quarter, after one to two projects on route to Asia.

Multi-client revenues in the second quarter

During the second quarter, the Company has announced USD 2.0 million in multi-client late sales, in addition to pre-funding of its projects in the US Gulf of Mexico and the Barents Sea. The Company expects to record a total of approximately USD 7 million in multi-client revenues for the second quarter. This is net of the contribution to TGS related to the cooperation between the two companies in the Barents Sea.