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    EMGS executes option to charter second new build

    Vessel & ROV News // March 19, 2007

    EMGS has announced that it has executed an option and signed a contract for chartering a second custom-built vessel to carry out the company's proprietary seabed logging operations for oil and gas exploration companies worldwide. The charter is for five years plus options.

    The vessel - the sixth to join the emgs fleet - has been ordered from the Norwegian Taubåtkompaniet/BOA group and will be built at the Fosen Mekaniske Verksteder (FMV) shipyard, north of Trondheim, for delivery late 2008.

    Seabed logging (SBL), which is a technology used to detect hydrocarbons beneath the seabed through the use of electromagnetic energy prior to drilling.

    "This is an important milestone for emgs. By adding new capacity emgs strengthens its position as the leading company in the SBL business even further," said CEO Terje Eidesmo.

    emgs has plans to expand its capacity further, as a larger fleet will enable emgs to boost overall fleet utilization.

    "emgs expects to have seven vessels fully operational from year end 2008 positioning emgs to be by far the largest company in this area. In addition to fleet capacity emgs also has control over a combination of in-house, proprietary and off-the-shelf equipment constituting a very sound platform for growth going forward," said Mr Eidesmo.

    In 2006, emgs' revenues increased by 167 per cent to US$117.7 million, compared with US$44.0 million in 2005.

    For 2006, the EBITDA was US$20.7 million, an increase of US$29.7 million from 2005.

     

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