Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the fourth quarter of 2021 are attached.
- The Company recorded revenues of USD 5.1 million, up from USD 4.0 million in the fourth quarter of 2020 and down from USD 12.7 million in the third quarter of 2021.
- Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 0.4 million, down from USD 0.7 million in the fourth quarter of 2020
- Free cash decreased by USD 4.8 million during the quarter (including USD 3 million used towards the voluntary bond buy-back), to USD 9.9 million.
- EMGS completed a partial voluntary bond buy-back with a total nominal value of USD 4.0 million.
- Subsequent to the end of the fourth quarter 2021, EMGS proposed a 24-month extension of the maturity of the outstanding convertible bond issue, from May 2023 to May 2025. The proposal, which also includes a 100 bps adjustment to the interest margin, has received indicative support from a sufficient majority of bondholders
Anders Eimstad, Chief Financial Officer, +47 94 82 58 36
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. EMGS supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The Company’s services enable the integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency and reduces risks and the finding costs per barrel. CSEM technology can also be used to detect the presence of marine mineral deposits (primarily Seabed Massive Sulphides) and EMGS believes that the technology can also be used to estimate the mineral content of such deposits. The Company is undertaking early-stage initiatives to position itself in this future market.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.