Electromagnetic Geoservices Asa News

Norwegian geophysical services company Electromagnetic Geoservices ASA (EMGS) said in its fleet update for the third quarter 2019 showed a fleet utilization of 73 percent,  compared with 29% for the third quarter in 2018. The marine EM market player said that its  vessels were allocated 73% to proprietary work and no time was spent on multi-client projects, in the third quarter of 2019.In the comparable quarter of 2018, the vessels were allocated 29% to multi-client projects and no time was spent on proprietary work.EMGS had two vessels on charter and recorded 6.0 vessel months in the quarter. In the third quarter 2018, the Company also had two vessels on charter.The Atlantic Guardian commenced a proprietary survey for Pemex in Mexico on 25 July 2019. This survey is still ongoing.

Norwegian geophysical services company Electromagnetic Geoservices ASA (EMGS) has been awarded a contract by UK oil and gas major BP for work off the coast of Senegal and Mauritania.EMGS said in a in Oslo Exchange filing that the contract is worth around $6 million. The survey work is expected to start in the first quarter of 2020.CEO of EMGS, Bjørn Petter Lindhom, said, “EMGS is delighted to return to Africa and for the opportunity to work for BP and partners on their high-profile acreage in Mauritania and Senegal.""This contract extends our already healthy backlog and puts us in a good position to secure additional work in the prolific MSGBC Basin and in West Africa…

Norwegian geophysical services company Electromagnetic Geoservices ASA (EMGS) is participating in a sole-sourced tender process for a multi-year acquisition contract.EMGS has now received a letter of award for the contract. The multi-year call-off acquisition contract, awarded by one of the world’s largest national oil companies, has a minimum value of approx. USD 29.3 million, and a maximum value of approx. USD 73.3 million, over a two-year period.Based on current acquisition estimates, the marine EM market leader expects that all or a substantial part of the minimum contract value will be recognised in 2019.EMGS expects that final contract execution will take place within approx. three weeks.

Norwegian geophysical services company Electromagnetic Geoservices ASA (EMGS) said that its vessel utilisation for the fourth quarter 2018 was 32% compared with 13% for the fourth quarter in 2017.For the full year 2018, the vessel utilisation was 33%, whereas the utilisation for the full year 2017 was 56%, it said.In the fourth quarter of 2018, the Company's vessels were allocated 32% to proprietary work and no time was spent on multi-client projects. In the comparable quarter of 2017, the vessels were allocated 13% to multi-client projects and no time was spent on proprietary work.EMGS had two vessels in operation and recorded 5.7 vessel months in the quarter.

Electromagnetic Geoservices ASA (EMGS) has signed a new charter agreement for the vessel BOA Thalassa with BOA SBL AS (owner of the vessel) at new and improved commercial terms. The new terms are valid through 1 October 2019 with an option to extend the new agreement through 1 April 2021. EMGS and the owners have agreed to a reduction of the charter hire rate by approximately 20%. EMGS and BOA SBL AS have also agreed to some additional flexibility during 2017. The new contract will have a firm start on 1 October 2017, but the vessel remains available, as an option to EMGS, on a project by project basis between 1 April (expiry date of current contract) and 1 October 2017. The new terms are valid in this period.

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines vessel utilisation as the percentage of the vessel charter period spent on contracted or multi-client data acquisition. Downtime (technical or maritime) and some standby activities are not included in the utilisation. Vessel utilisation for the fourth quarter 2016 came in at 89% compared with 21% for the fourth quarter in 2015. For the full year 2016, the vessel utilisation was 70%, whereas the utilisation for the full year 2015 year was 59%. In the fourth quarter of 2016, the Company's vessels were allocated 35% to contract work and 54% to multi-client projects.

Electromagnetic Geoservices ASA (EMGS) has signed an extended charter agreement for the vessel Atlantic Guardian with North Sea Commander Shipping AS (owner of the vessel) at new and improved commercial terms. The new terms are valid as of 1 October 2016. EMGS and the owners have agreed to a reduction of the charter hire rate by approximately 27% and a new 5 year term for the charter. "We are pleased to see that our suppliers are contributing to the targeted cost savings in the Company. The new terms provide for a sound commercial basis when the market turns," says Christiaan Vermeijden, CEO of EMGS.

Electromagnetic Geoservices ASA (EMGS) announces a reduction in the Company's cost base in line with a reduced level of activity. The Company will seek a global reduction in employee expenses of approximately 20% by using both temporary and permanent layoffs amongst others. The cost reduction measure will yield effects gradually as headcount reductions onshore and offshore are scheduled to follow a different timeline. "The market is expected to continue to be subdued until the oil price recovers and customers increase their E&P budgets. Cost reductions and cost control will therefore continue to be important focus areas in the Company.

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines vessel utilisation as the percentage of the vessel charter period spent on contracted or multi-client data acquisition. Downtime (technical or maritime) and standby activities is not included in the utilisation. Vessel utilisation for the first quarter 2016 came in at 55% compared with 76% for the first quarter in 2015. In the first quarter of 2016, the Company's vessels were allocated 29% to contract and 26% to multi-client projects. In the comparable quarter of 2015, the vessels were allocated 24% to contract work and 52% to multi-client projects. EMGS had two vessels in operation in the first quarter 2016.

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines "vessel utilisation" as the percentage of the vessel charter period spent on contracted or multi-client data acquisition. Vessel utilisation for the fourth quarter 2015 came in at 21% compared with 63% for the fourth quarter in 2014. For the full year 2015, the vessel utilisation was 59%, whereas the utilisation for the full year 2014 ended at 69%. In the fourth quarter of 2015, the Company's vessels were allocated 21% to contract and no time were spent on multi-client programmes. In the fourth quarter of 2014, the allocation was 39% on contract work and 24% on multi-client programmes.

Electromagnetic Geoservices ASA (EMGS) has entered into a data licensing agreement with an oil company for the provision of 3D EM data from the multi-client data library over the Norwegian Sea and the Barents Sea. The company did not reveal the name of the client, however, it stated that the deal is worth a total of USD 4.0 million.

Electromagnetic Geoservices ASA (EMGS) has appointed Hege A. Veiseth (38) as acting CFO of the company effective from 1 January 2016, following the resignation of Svein Knudsen.   Hege has worked for EMGS since 2007 and is currently the Group Finance Manager of the company. Prior to joining EMGS, she worked as an auditor for EY for 7 years, including as auditor for EMGS. Hege has a MSc in Economics and Business Administration from the Norwegian School of Economics (NHH) and a MSc in Accounting and Auditing from the Norwegian Business School (BI).

Electromagnetic Geoservices ASA (EMGS) announces that the Company has entered into a data licensing agreement with an international oil company for the provision of 3D EM data from the multi-client data library over the Daybreak project located in the western US Gulf of Mexico worth a total of USD 1.5 million. The Daybreak data set is bordering Mexico's Perdido offshore oil province, and we find it encouraging that sales also are emerging from cross boarder exploration strategies in this region, say's Juan M. Santana, EMGS President - NSA.  This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Bjarte Bruheim has decided to step down as Chief Executive Officer of Electromagnetic Geoservices ASA with immediate effect. He has held this position since 7 January 2015, and before that, he held the position as the company's executive chairman since 2004. The board of directors wishes to express its gratitude to Bjarte Bruheim for his valuable contribution to the company through many years. EMGS has initiated a search for a new CEO. Until a permanent CEO is in place, Stig Eide Sivertsen has been appointed new CEO. As the CEO cannot be a member of the board of directors, according to the Norwegian Public Limited Liability Companies Act, Sivertsen has voluntarily resigned as board member with immediate effect. Sivertsen has served on the Board and chaired the Company's audit committee.

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 12.1 million in the second quarter 2015, down from 32.3 million in the previous quarter and from USD 42.5 million in the second quarter 2014. Contract sales ended at USD 4.8 million, while sales from the multi-client library ended at USD 7.3 million. The results were negatively affected by extraordinary costs related to the Company's cost reduction program. EBITDA ended with a negative USD 6.0 million after a multi-client investment of USD 14.0 million. An impairment of goodwill related to the OHM acquisition in 2011 of USD 14.4 million resulted in a net loss for the second quarter 2015 of USD 26.0 million.

Electromagnetic Geoservices ASA (EMGS) has received a letter of award (LOA) for a contract worth approximately USD 4.2 million from an oil company for 3D EM data acquisition over their operated area in Malaysia. The two parties have entered into a two-year contract, of which this LOA constitutes the commitment for the first and initial phase. The parties have also designed a survey for an optional second phase in 2016. "We are very pleased to announce this letter of award with a repeat customer in Malaysia. It is also important to us that it is a two-year agreement, with expectations for more work next year," says CEO of EMGS, Bjarte Bruheim. The survey will be done using the vessel BOA Thalassa which is expected to commence acquisition as soon as possible.

Electromagnetic Geoservices ASA (EMGS) announce that the Company implements further cost reductions reflecting the challenging market conditions in the oil service industry. As communicated in the first quarter report, the Company initiated cost reduction measures in the beginning of the first quarter. These measures have proven successful. However, due to further delays in contract negotiations and lower than expected demand for EM data, EMGS Management has decided to implement an additional cost reduction program. The key elements of the program include a reduction of EMGS global headcount including consultants by 20% and a reduction of the vessel capacity by one vessel (from four to three).

Electromagnetic Geoservices ASA (EMGS) has received a letter from PEMEX to return for 3D EM acquisition in Mexico. The vessel BOA Galatea is expected to re-start the work for PEMEX. The order is confirming a continuation of the existing contract for PEMEX, announced on 27 June 2013.   "We are delighted to start working for PEMEX again in this exciting region," said Bjarte Bruheim, CEO of EMGS.   The duration of the acquisition is not settled. Further information will be announced in due course.

Petroleum Geo-Services ASA ('PGS' or the 'Company') today announces that Oslo District Court in its judgment of 13 February 2015 ruled in favor of PGS in the lawsuit filed by ElectroMagnetic GeoServices ASA ('EMGS') against PGS for patent infringement relating to PGS' Towed Streamer EM technology. The court found that EMGS' patent NO 324 454 (the 'EMGS Patent') is invalid and that PGS' Towed Streamer EM system therefore does not infringe the EMGS Patent. PGS was also awarded legal fees of NOK 15,292,917. Oslo District Court found that all the elements of the EMGS Patent were sufficiently described (anticipated) by four independent written articles (prior art). The judgment was thorough and well written, and its conclusion as expected by PGS.

As previously announced, Electromagnetic Geoservices ASA (EMGS) has issued claims against Petroleum Geo-Services (PGS) in the High Court of Justice, Patent Court, in London, UK, and in Norwegian courts on the basis that PGS used its Towed Streamer EM in the territory of the United Kingdom, Ireland and Norway in violation of one of EMGS' patents. On 13 February 2015, EMGS received the decision of the Oslo City Court where EMGS' patent is found to be invalid. EMGS has decided to appeal the decision. EMGS successfully defended the patent against claims of invalidity from Schlumberger Holding Ltd in the Netherlands, in February 2008 and in the UK Court of Appeal in July 2010 and through several oppositions in the European Patent Office appeal division in December 2011.

Oslo, Norway, Petroleum Geo-Services ASA informed today that Oslo District Court in its judgment of 13 February 2015 ruled in favor of PGS in the lawsuit filed by ElectroMagnetic GeoServices ASA ('EMGS') against PGS for patent infringement relating to PGS' Towed Streamer EM technology. The court found that EMGS' patent NO 324 454 (the 'EMGS Patent') is invalid and that PGS' Towed Streamer EM system therefore does not infringe the EMGS Patent. PGS was also awarded legal fees of NOK 15,292,917. Oslo District Court found that all the elements of the EMGS Patent were sufficiently described (anticipated) by four independent written articles (prior art). The judgment was thorough and well written, and its conclusion as expected by PGS.

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines "vessel utilisation" as the percentage of the vessel charter period spent on contracted or multi-client data acquisition. Vessel utilisation for the first quarter 2015 came in at 76% compared with 66% for the first quarter 2014. In the first quarter of 2015, the Company's vessels were allocated 24% to contract and 52% to multi-client programmes. For the corresponding quarter in 2014, the allocation was 56% and 10% respectively. EMGS recorded 12 vessel months this quarter, compared with 10.7 in the first quarter of 2014. The BOA Thalassa has been in Asia for the full quarter positioned for expected contract work in the region.

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 52.5 million in the fourth quarter 2014, up from USD 41.7 million in the third quarter and from USD 44.9 million in the corresponding quarter in 2013. Contract sales totaled USD 25.5 million, while multi-client sales were at USD 27.0 million this quarter. The Company had an EBITDA of USD 18.6 million and a net income of USD 15.1 million. The Company had record-high multi-client sales in the quarter, mostly from the library in the Barents Sea. In addition, the Company signed contracts for its vessel BOA Thalassa in Asia and a 3.5 months contract for the EM Leader in Uruguay. The Atlantic Guardian spent most of the quarter at yard and contributed with only 0.9 vessel month this quarter. “2014 was a successful year for EMGS.