Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the second quarter of 2019 are attached.
* The Company recorded revenues of USD 14.5 million, up from USD 7.9 million in the second quarter 2018 and up from USD 10.8 million in the first quarter 2019.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 2.1 million, up from negative USD 3.0 million in the second 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 10.9 million in the second quarter last year to USD 12.4 million this quarter.
* Free cash decreased with USD 3.9 million during the quarter, to USD 5.8 million.
* During the quarter, the Atlantic Guardian acquired data on three multi-client projects in Norway of which two were fully prefunded and started the transit to Mexico. The BOA Thalassa worked on the USD 24 million proprietary acquisition contract for Petronas in South-East Asia in the second quarter.
* Backlog at the end of the quarter of approx. USD 97 million.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“The arrival of Atlantic Guardian in Mexico and the start of acquisition for Pemex is an important milestone for EMGS. We now have both our vessels working on long term contracts securing a healthy cashflow for the Company.
The award from BP for a survey in Mauritania and Senegal, marks our return to Africa, and shows that our efforts and focus on getting the majors to use our technology in the Atlantic Margin is starting to pay off.”
The results will be presented at 10:00 (local time Norway) today. The presentation will be held by CEO Bjørn Petter Lindhom and CFO Hege A. Veiseth 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.
Hege Veiseth, CFO, +47 99 21 67 43