EMGS – Vessel update and activity for the third quarter 2015

EMGS – Vessel update and activity for the third quarter 2015

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines “vessel utilisation” as the percentage of the vessel charter period spent on contracted or multi-client data acquisition.

Vessel utilisation for the third quarter 2015 came in at 63% compared with 69% for the third quarter in 2014. For the first nine months this year, the vessel utilisation was 70%, the same as for the corresponding period last year.

In the third quarter of 2015, the Company’s vessels were allocated 16% to contract and 48% to multi-client programmes. In the third quarter of 2014, the allocation was 31% and 38% respectively.

EMGS recorded 9.0 vessel months this quarter, compared with 11.4 vessel months in the second quarter of 2014.

Vessel activity
The BOA Thalassa has been in Asia for the full third quarter positioned for expected contract work in the region. The vessel was idle from the beginning of the quarter, until commencement of the announced contract in Malaysia on 12 September.
The vessel’s utilisation for this quarter was 26%.

The BOA Galatea acquired 3D EM data on the multi-client project called Lightning Bolt from 3 April to 15 July and from 28 July to 3 September. From 16 to 27 July, the vessel acquired data on the multi-client project called Stratus. On 11 September acquisition commenced the announced contract work for Pemex in Mexico.
The vessel’s utilisation came in at 81% this quarter.

The Atlantic Guardian commenced a campaign in the Hammerfest basin on 15 April. The campaign had a short break from 4 to 8 July and was completed on 16 September. The survey was extended and ended up covering approximately 22 blocks in the Barents Sea and 5 in the Norwegian Sea. After this, the vessel started on a short survey in the Norwegian Sea on 17 September. The survey was completed on 2 October and the vessel will be laid up in Bergen from 3 October until the beginning of December.
The vessel’s utilisation for the second quarter was 84%.

The EM Leader has been off-hire since 15 May.

Multi-client revenues and other announced measures impacting the third quarter
The Company expects to record a total of approximately USD 7 million in multi-client revenues for the third quarter 2015. This is a combination of pre-funding and late sales, and net of the contribution to partners.

In connection with the Company’s announced cost reduction measures, EMGS will book restructuring charges of USD 1.3 million and USD 1.5 million in the third and fourth quarter respectively. In addition, a provision for onerous contracts (loss on charter agreements) of USD 4.4 million will be booked in the third quarter, related to expected idle time on the EM Leader and the Atlantic Guardian in a given time period.

EMGS will publish its third quarter 2015 financial results on Thursday 5 November 2015 at 07:30 CET. A presentation will be held at the Company’s office address, in Dronning Mauds gate 15 in Oslo, and will be broadcasted live over the Internet, starting at 10:00 CET.

Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59