EMGS reports first quarter 2015 results - says market is "challenging"Company News // May 28, 2015
Electromagnetic Geoservices (EMGS) recorded revenues of US$32.3 million in the first quarter of 2015, down from US$52.5 million compared to the fourth quarter 2014 and US$61.3 million in the first quarter last year.
Contract sales totaled US$22.1 million and multi-client sales were US$10.2 million in the quarter. The company had an EBITDA of US$7.2 million and a net loss of US$1.1 million.
In the quarter under review EM Leader operated for BG Group in Uruguay for the entire period; the three other vessels that the company operates acquired multi-client data in the Barents Sea, the Gulf of Mexico and in Indonesia.
"The current market is challenging and our contract revenues for the first quarter were lower than expected. We experienced delays in contract negotiations and our backlog is limited. We have initiated cost reduction measures and are prepared to take additional action if necessary. However, we have a unique technology, a solid financial position, flexible business model and growing multi-client libraries that we believe position us for future growth in the longer term," said the CEO of EMGS, Bjarte Bruheim.
The company said the low oil price and cautious spending behavior by oil companies resulted in reduced or deferred commitments and the market outlook "continues to be uncertain."
EMGS said it will "utilise its flexible cost structure to adjust its cost level to the shifting market conditions."