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Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report and market presentation for the second quarter of 2021 are attached.
* The Company recorded revenues of USD 9.4 million, up from USD 7.5 million in the second quarter of 2020 and up from USD 1.6 million in the first quarter of 2021.
* Adjusted EBITDA (including capitalised multi-client expenses and vessel and office lease expenses) of USD 4.6 million, up from negative USD 2.0 million in the second quarter of 2020.
* Free cash increased with USD 1.1 million during the quarter, to USD 13.2 million.
* Subsequent to the end of the second quarter 2021, EMGS completed the proprietary survey in Southeast Asia and has started transit back to Norway for a fully prefunded multi-client survey.
* In July 2021, EMGS completed a partial voluntary bond buy-back with a total nominal value of USD 4.0 million, resulting in annualised interest expense savings of approximately USD 200 thousand.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“We are very pleased with having delivered a strong second quarter. We are beginning to see the benefits of our shift to a more flexible business and operational model. I am very grateful to our onshore and offshore personnel for continuing to deliver above and beyond.
We will continue to invest in financially attractive multi-client programs, while also realising the value of our existing multi-client library though additional late sales. I am therefore particularly pleased to note the USD 3.6 million in late sales announced after the close of the second quarter.”
A pre-recorded presentation will be available over the internet from 20:00 (local time Norway) today. To access the presentation, please go to the Company’s homepage (www.emgs.com) and follow the link.
Anders Eimstad, Chief Financial Officer, +47 94 82 58 36
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. CSEM technology can also be used to detect the presence of marine mineral deposits (primarily Seabed Massive Sulphides) and EMGS believes that the technology can also be used to estimate the mineral content of such deposits. The Company is undertaking early-stage initiatives to position itself in this future market.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.