EMGS reports fourth quarter 2019 results

EMGS reports fourth quarter 2019 results

Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the fourth quarter of 2019 are attached.

Highlights:

* The Company recorded revenues of USD 37.2 million, up from USD 13.4 million in the fourth quarter 2018 and up from USD 26.9 million in the third quarter 2019.

* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 20.9 million, up from USD 0.2 million in the fourth quarter 2018.

* The Company increased its quarterly cost base, consisting of all operational costs including multi-client investments and vessel and office lease expenses, from USD 13.2 million in the fourth quarter last year to USD 16.3 million this quarter.

* The Company continues to experience payment delays in connection with on-going acquisition contract.

* Free cash increased with USD 16.0 million during the quarter, to USD 19.7 million.

* Backlog at the end of the quarter of approx. USD 58 million, whereof USD 14.3 million is firm.

* During the quarter, the Atlantic Guardian continued a proprietary survey for Pemex in Mexico. This survey is still ongoing. The Petrel Explorer completed work on the USD 24 million proprietary acquisition in South East Asia in the fourth quarter.

CEO of EMGS, Bjørn Petter Lindhom, comments:

“We are today presenting both very strong full year results and a record quarter. This reflects good utilisation in 2019, with two major long-term contracts, and continued cost discipline.”

The results will be presented at 10:00 (local time Norway) today. The presentation will be held by CEO Bjørn Petter Lindhom and Interim CFO Anders Eimstad and will be broadcasted live over the Internet. The webcast can be accessed on www.emgs.com. It will be possible to post questions through the webcast.

Contact
Anders Eimstad, Interim CFO, +47 94 82 58 36

EMGS Q4 2019 Report
EMGS Q4 2019 Presentation