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EMGS: EMGS reports fourth quarter 2015 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 20.5 million
in the fourth quarter 2015, up from USD 16.3 million in the third quarter and
down from USD 52.5 million in the fourth quarter 2014. Contract sales ended
at USD 9.0 million, while sales from the multi-client library ended at USD
11.5 million in the quarter. The results were negatively affected by
announced restructuring charges related to the Company's cost reduction
program. EBITDA ended with a negative USD 8.0 million and the Company has
done multi-client impairments of USD 8.6 million in the fourth quarter.
"I am pleased to have started at EMGS. The low oil price presents a challenge
as exploration budgets continue to come down. However, with the adoption of
our technology on the rise, EMGS continues to be well positioned within the
industry. I am encouraged by the healthy amount of business opportunities,
even though our customers tend to delay decisions to award work closer to the
start-up of the surveys," says CEO of EMGS, Christiaan Vermeijden.
During the quarter, the vessel BOA Thalassa completed the announced contract
work in Malaysia and the vessel is currently operating on the announced
contract work for ONGC in India worth approximately USD 15 million. The BOA
Galatea worked on a Proof of Concept study in Mexico in the quarter and was
delivered back to the vessel owner in mid-January.
EMGS expects the cost reduction measures to have full effect from the second
quarter 2016 and the Company is currently ahead of its target to cut cost.
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. The interest in the EM technology from the
oil companies is healthy, although challenged by the reduced budgets.
Based on the current operational forecast, EMGS expects to operate two vessels
in 2016 with an option to include a third vessel if certain prospects
materialise. The Company expects to keep one vessel in Asia throughout 2016,
while the other vessel is expected to operate in Europe and the Americas.
EMGS will continue to invest in its multi-client library in selected areas.
Please find the full report for the fourth quarter 2015 enclosed. The results
will be presented at 10:00 CET today at the Company's premises in Dronning
Mauds gate 15 in Oslo. The presentation will be published at 09:30 CET.

Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59
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 the 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 operates on a worldwide basis with main offices in Trondheim and Oslo,
Norway; Houston, USA; and Kuala Lumpur, Malaysia.
For more information,
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Fourth quarter report 2015


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EMGS via Globenewswire


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