Norway: Financially Disappointing Third Quarter for EMGS

EMGS, the marine EM market leader, recorded revenues of USD 43.2 million in the third quarter of 2012, down from USD 45.5 million in the third quarter of 2011.

“Compared to the previous quarters, the third quarter is disappointing financially. However, we are on track to deliver the best-ever annual results in the company’s history. The fundamental demand for EM services remains strong and we expect to see continued profitable revenue growth in 2013,” says Roar Bekker, EMGS chief executive officer.

Highlights in the third quarter 2012 are the following:

– Total revenues at USD 43.2 million for the quarter

– EBITDA of USD 7.3 million

– Net loss of USD 5.8 million

– USD 20 million contract awarded in Asia

– PEMEX data acquisition successfully completed

– Expanding the addressable market through proof of concept surveys

Subsequent important events:

– West of Shetland and Norwegian Sea basalt mapping project fully pre-funded

– New 3D EM data acquisition project in Brazil

Contract sales totalled USD 39.0 million and multi-client sales came in at USD 4.2 million. In the corresponding period last year, EMGS recorded no multi-client sales.

The company recorded 9.6 vessel months in the third quarter of 2012 as opposed to 9.0 in the third quarter of 2011. The slight reduction in revenues from the third quarter 2011 to the corresponding quarter in 2012, despite an increase in vessel months, is due to proof of concept surveys which totalled approximately two vessel months in the third quarter of 2012 as well as 1.5 vessel months related to multi-client activity.

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Press Release, November 16, 2012