Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 13.0 million in the first quarter 2016, down from USD 20.5 million in the fourth quarter 2015 and from USD 22.1 million in the first quarter 2015.
The revenues this quarter consisted of contract sales only, as no multi-client revenues were booked in the quarter. The Company has reduced its quarterly cost base, consisting of all operational costs including multi-client investments, from USD 49.0 million in the first quarter last year to USD 18.2 million this quarter. EBITDA ended with a negative USD 3.4 million.
“Although the market continues to be challenging, we are encouraged by the recovery of the oil price and the interest shown by various customers, including regulators, in our EM services. The reduction in the cost base of the company is also expected to put us in a much better position as the market recovers.” says CEO of EMGS, Christiaan Vermeijden.
During the quarter, the vessel BOA Thalassa completed the announced contract work in India for ONGC and acquired 3D EM multi-client data off the west coast of India thereafter. The Atlantic Guardian was on a planned yard stay in February and started acquiring data on a multi-client project in the Hammerfest basin in the Barents Sea from mid-March.
The market outlook for oil services continues to be challenging and is characterised by high uncertainty. Oil companies have continued to announce further reductions in their spending for 2016 compared to 2015 as a response to the sharp decline in oil price. The interest in the EM technology from the oil companies is healthy, although challenged by the reduced budgets and project deferrals.
Please find the full report for the first quarter 2016 by clicking HERE. The results will be presented at 10:00 CET today at the Company’s premises in Dronning Mauds gate 15 in Oslo. The presentation will be published at 09:30 CET.