EMGS Confirms Further Staff Cuts

Norway's oil and gas survey technology firm Electromagnetic Geoservices ASA (EMGS) will be reducing its staff as soon as possible, the company’s chief financial officer told Rigzone.

“I can confirm that that EMGS will be reducing its staff,” said CFO Hege Aasen Veiseth.

“We will use both permanent and temporary layoffs for the staff. The temporary layoffs for the onshore employees will start as soon as possible, while the timing of the offshore employees layoff will be based on operational activity,” Veiseth added.

The reason for the reduction is “to match revenues and expenses,” according to EMGS’ CFO. Around 50 workers will be affected, which is 29 percent of the total number of the company’s employees.

In April this year, EMGS made a number of layoffs as a result of the lower oil price environment.

“The reason is the lower activity level that the company is experiencing, due to the low oil price and the reduced spending/budgets from exploration and production companies,” EMGS Head of Investor Relations, Charlotte Knudsen, told Rigzone at the time.

When asked in April if the company was considering further cuts in the future, Knudsen suggested to Rigzone that it was a possibility.

“We have no guarantees. We continuously have a strong focus on our costs and try to align the cost level to the expected activity level. It is currently hard to predict the future activity level.”

In January this year, EMGS and fellow survey technology company TGS reported declining revenues in the face of the current industry downturn.


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Company: Electromagnetic Geoservices ASA (emgs) more info
 - EMGS Secures Contract Extension With Malaysian Oil Company (Nov 17)
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