emgs Reports 'Eventful' Q1
Electromagnetic Geoservices ASA (emgs) said that it experienced an eventful first quarter in 2007.
A growth in the number of client requests toward the end of the quarter--resulting in two significant contracts--and a successful financing and listing of the emgs shares on the Oslo Stock Exchange, more than compensated for seasonally weak demand, high steaming activity and non-recurring cost items, the company stated.
Revenues in the first quarter of 2007 came to USD 25.9 million, while the EBITDA was negative by USD 8.0 million. Revenue is expected to pick up throughout the year. Based on the current backlog and anticipated contracts, emgs expects revenues in the range of USD 160-170 million for 2007.
--On track for revenues of USD 160-170 million in 2007 --Strong market development --Non-recurring cost items of approximately USD 8.6 million --Vessels and equipment to support growth plan through 2008: Existing vessel charters extended for years to come Second purpose-built ship secured for delivery in 2008 --Capital for further growth secured. Successful listing on the Oslo Stock Exchange on March 30 "emgs laid a solid foundation for further growth during the first quarter and we are pleased to see that more and more oil companies adopt our game- changing technology," said CEO Terje Eidesmo. "emgs is very optimistic about growth prospects. We see the potential for seabed logging to develop into a tool which all companies use widely and to the same extent as seismic surveys."
Seabed logging enables the detection of hydrocarbons beneath the
seabed prior to drilling. The company has developed
this proprietary and patented technology over the
past 10 years. Since its incorporation as a
separate company in 2002, emgs has conducted more
than 200 commercial surveys for many of the world's
leading oil and gas companies and offshore
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