Vessel update and activity for the fourth quarter 2015

Vessel update and activity for the fourth 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 fourth quarter 2015 came in at 21% compared with 63% for the fourth quarter in 2014. For the full year 2015, the vessel utilisation was 59%, whereas the utilisation for the full year 2014 ended at 69%.

In the fourth quarter of 2015, the Company’s vessels were allocated 21% to contract and no time were spent on multi-client programmes. In the fourth quarter of 2014, the allocation was 39% on contract work and 24% on multi-client programmes. EMGS recorded 9.0 vessel months this quarter, compared with 9.9 vessel months in
the last quarter of 2014.

Vessel activity
The BOA Thalassa has worked on two contracts in Malaysia in the fourth quarter. The first contract was completed on 8 October, while the second contract commenced on 23 October and was completed on 6 December. Between the two contracts, the vessel had a yard stay for five days. The vessel started the announced contract work in India on 4 January 2016. The vessel’s utilisation for the fourth quarter was 55%.

The BOA Galatea completed the announced contract work for Pemex in Mexico on 6 October. From 12 October to 11 December the vessel worked on a Proof of Concept (PoC) study in the Mexican sector of the Gulf of Mexico. This is not included in the utilisation. Following the PoC study, the vessel started its transit back to the Fosen shipyard in Norway, were the vessel will be delivered back to its owner mid-January.
The vessel’s utilisation came in at 6% for the fourth quarter. The Atlantic Guardian acquired data on a small survey in the Norwegian Sea on 1(st) and 2(nd) of October. Following this, the vessel was laid up in Bergen for the rest of the quarter.
The vessel’s utilisation for the fourth quarter was 3%.

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

Multi-client revenues and other announced measures impacting the fourth quarter
The Company expects to record a total of approximately USD 11 million in multi- client revenues for the fourth quarter 2015.

In connection with the Company’s announced cost reduction measures, EMGS expects to book restructuring charges of USD 1.3 million in the fourth quarter.

EMGS will publish its fourth quarter 2015 financial results on Thursday 11 February 2016 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.