EMGS reports first quarter 2016 resultsCompany News // May 23, 2016
Electromagnetic Geoservices (EMGS) recorded revenues of US$13.0 million in the first quarter 2016, down from US$20.5 million in the fourth quarter 2015 and from US$22.1 million in the first quarter 2015. Revenues in this quarter consisted of contract sales only, as no multi-client revenues were booked in the quarter.
The company said it has has reduced its quarterly cost base, consisting of all operational costs including multi-client investments, from US$49.0 million in the first quarter last year to US$18.2 million this quarter. EBITDA ended with a negative US$3.4 million.
“Although the market continues to be challenging, we are encouraged by the recovery of the oil price and the interest shown by various customers, including regulators, in our EM services. The reduction in the cost base of the company is also expected to put us in a much better position as the market recovers,” said the company's CEO, Christiaan Vermeijden.
During the quarter, the vessel Boa Thalassa completed work in India for ONGC and acquired 3D EM multi-client data off the west coast of India thereafter. Atlantic Guardian was on a planned yard stay in February and started acquiring data on a multi-client project in the Hammerfest basin in the Barents Sea in mid-March.
"The market outlook for oil services continues to be challenging and is characterised by high uncertainty. Oil companies have continued to announce further reductions in their spending for 2016 compared to 2015 as a response to the sharp decline in oil price," said EMGS. "Interest in the EM technology from the oil companies is healthy, although challenged by reduced budgets and project deferrals."