EMGS Cuts Costs to Shrink Loss

Electromagnetic Geoservices (EMGS) has narrowed its loss in the second quarter, ended June 30, 2016, as the company chopped its operating expenses by some 30 percent.

The Oslo-listed company posted net loss of USD 11.2 million, compared to net los of USD 26 million in the same period in 2015. EMGS also improved quarter-on-quarter and narrowed its loss by some 28% from USD 15 milion in Q1 2016. First half of 2016 ended in a loss of USD 26.7 million, compared to a loss of USD 27.2 million in the same period last year.

EMGS reported quarterly operating expenses of USD 26.2 million, of which USD 9.2 million impairment of long-term assets, against USD 37.3 million same time last year (USD 14.4 million impairments).

Second-quarter revenues were USD 15.1 million, up from USD 12.1 million in the prior-year quarter and from USD 13 million sequentially. The Q2 turnover was mostly generated trough multi-client sales (USD 14.7 million). However, revenues for the first six months of 2016 fell from USD 44.3 million in the the prior-year comparable period to USD 28.1 million, due to lack of contract work.

EMGS had two vessels in operation in Q2 2016, versus four vessels operating in Q2 2015. Vessel utilisation was 76% in the second quarter of 2016, compared to 68% a year earlier.

As of June 30, 2016, EMGS’ backlog was about USD 5 million, compared with a backlog of USD 15.8 million at the end of Q2 2015.

Subsea World News Staff