Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the third quarter of 2021 are attached.
* The Company recorded revenues of USD 12.7 million, up from USD 2.1 million in the third quarter of 2020 and up from USD 9.4 million in the second quarter of 2021.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 7.6 million, up from negative USD 1.2 million in the third quarter of 2020.
* Free cash increased with USD 1.5 million during the quarter, to USD 14.7 million.
* EMGS completed a partial voluntary bond buy-back with a total nominal value of USD 4.0 million.
* EMGS impaired USD 2.1 million held in Accendo Banco S.A after regulators revoked their banking license.
* Subsequent to the end of the third quarter 2021, EMGS’ chairman of the board of directors stepped down.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“The third quarter was strong both in terms of revenue and profitability, and in terms of operational performance. Our cash position remains strong.
While we are now working on planning for the 2022 acquisition season, we maintain our continuous focus on delivering on late-sales from our extensive multi-client library, consulting and software services, and our initiatives with respect to positioning the Company for the future marine minerals exploration market.”
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.