EMGS: Update on full year 2012 results and vessel schedule

Preliminary fourth quarter and full year financial results
Based on preliminary and unaudited results, Electromagnetic Geoservices ASA (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.

EMGS will report the unaudited fourth quarter and full-year 2012 financial results on 7 February 2013.

Roar Bekker, EMGS chief executive officer, +47 22 01 14 00
Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00
Chris Guldberg, EMGS Head of PR/IR, +47 73 56 88 10 / +47 92 81 07 07

About EMGS
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 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.

EMGS has conducted more than 650 surveys to improve drilling success rates across the world's mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim, Stavanger and Oslo, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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Source: EMGS via Thomson Reuters ONE


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