EMGS recorded revenues of USD 32.3 million in the first quarter 2015, down from USD 52.5 million in the fourth quarter 2014 and from USD 61.3 million in the first quarter last year. Contract sales totaled USD 22.1 million, while multi-client sales were at USD 10.2 million this quarter. The Company had an EBITDA of USD 7.2 million and a net loss of USD 1.1 million.
The EM Leader operated for BG Group in Uruguay the entire first quarter, while the three other vessels acquired multi-client data in the Barents Sea, the US Gulf of Mexico and in Indonesia, all considered important basins for EMGS going forward.
“The current market is challenging and our contract revenues for the first quarter are lower than expected. We experience delays in contract negotiations and our backlog is limited. We have initiated cost reduction measures and are prepared to take additional action if necessary. However, we have a unique technology, solid financial position, flexible business model and growing multi-client libraries that we believe position us for future growth in the longer term,” says CEO of EMGS, Bjarte Bruheim.
The low oil price and the associated cautious spending behavior among oil companies result in reduced or deferred commitments, and the market outlook continues to be uncertain. EMGS will utilise its flexible cost structure to adjust its cost level to the shifting market conditions.
The first quarter results will be presented at 10:00 CET today. Link to webcast.
Svein Knudsen, EMGS chief financial officer, +47 911 41 149
Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59