EMGS Publishes Update on 2012 Results and Vessel Schedule

Electromagnetic Geoservices ASA (EMGS) has published an update on full year 2012 results and vessel schedule.

Based on preliminary and unaudited results, EMGS expects to report 2012 annual revenues of approximately USD 200 million and EBITDA of approximately USD 50 million. Total fourth quarter 2012 revenues are expected to come in at approximately USD million 44 million, of which the multi-client segment accounts for approximately USD 10 million.

EMGS experienced higher than usual seasonal slowdown in industry activity towards the end of the fourth quarter, resulting in delayed multi-client sales amounting to approximately USD 8 million.

“Although we are disappointed that sales in the fourth quarter came in short of our expectations, we see this purely as a timing issue and expect to book the shortfall of approximately USD 8 million in the first quarter of 2013. Additionally, we see considerable late-sales potential in the first half of 2013 and beyond based on the industry interest we are witnessing for our new sub-salt and sub-basalt data packages as well as the Barents Sea data library,” said Roar Bekker, CEO of EMGS.

 Expected vessel schedule

EMGS has secured backlog for the EM Leader in Asia through to early May following several previously announced contract awards. The company is currently in advanced stages of negotiations regarding additional contracts totalling approximately six months of work with start-up in mid-February. EMGS has therefore resolved to mobilize the BOA Thalassa from her current operations in the US Gulf of Mexico to the Asia Pacific region. EMGS expects to deploy both vessels in Asia for most of 2013 as a consequence of substantially increased demand for proprietary contract work from both new and existing customers.

The BOA Galatea has completed data acquisition under the contract extension with Petrobras and has now commenced a two-month multi-client program in the Ceara area in the northern part of Brazil. The 3D EM survey program covers blocks that are expected to be announced in the 11th licensing round in Brazil.

The Atlantic Guardian is, as previously communicated, standby in Bergen at no cost for EMGS. The company is currently pursuing contract and multi-client opportunities in the North Atlantic region and West Africa, and expects to bring the vessel back into operation in early March at the latest.

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Press Release, January 8, 2013