Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the second quarter of 2022 are attached.
* The Company recorded revenues of USD 6.9 million, down from USD 9.4 million in the second quarter of 2021 and up from USD 6.2 million in the first quarter of 2022.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 2.8 million, down from USD 4.6 million in the second quarter of 2021.
* Free cash increased with USD 3.4 million during the quarter, to USD 11.6 million.
* Atlantic Guardian time charter extended by one year to 20 October 2023.
* Subsequent to the end of the second quarter 2022, EMGS announced that the Company secured USD 3.8 million in uplifts related to the existing multi-client library in Norway. The Company also announced that it has secured USD 2.0 million in prefunding for a multi-client survey in East Canada as well as an acquisition contract with a maximum value of USD 11 million.
* The Atlantic Guardian is currently acquiring a proof-of-concept survey in the Mid-Atlantic Ridge related to marine mineral exploration.
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.