Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the third quarter of 2019 are attached.
* The Company recorded revenues of USD 26.9 million, up from USD 6.0 million in the third quarter 2018 and up from USD 14.5 million in the second quarter 2019.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 11.6 million, up from negative USD 5.9 million in the third quarter 2018.
* The Company increased its quarterly cost base, consisting of all operational costs including multi-client investments and vessel and office lease expenses, from USD 11.9 million in the third quarter last year to USD 15.3 million this quarter.
* The Company is currently experiencing a delay in the approval and payment of invoices under an on-going acquisition contract.
* Free cash decreased with USD 2.0 million during the quarter, to USD 3.8 million.
* Backlog at the end of the quarter of approx. USD 78 million, whereof USD 37 million is firm.
* During the quarter, the Atlantic Guardian commenced a proprietary survey for Pemex in Mexico. This survey is still ongoing. The BOA Thalassa worked on the USD 24 million proprietary acquisition contract for Petronas in Malaysia in the third quarter.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“I am pleased to present EMGS’ strongest quarter in over four years. The quarter was characterised by strong operational performance by both vessels. Despite operating under challenging conditions, both vessels delivered outstanding operational uptime, QHSSE results and first-class data quality.”
The results will be presented at 10:00 (local time Norway) today. The presentation will be held by CEO Bjørn Petter Lindhom and CFO Hege A. Veiseth and will be broadcasted live over the Internet. The webcast can be accessed on www.emgs.com. It will be possible to post questions through the webcast.
Hege Veiseth, CFO, +47 99 21 67 43