Earnings Release • Nov 7, 2022
Earnings Release
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1 Third Quarter 2022. 1 1
• Commenced acquisition on the survey in Trinidad and Tobago. Acquisition is expected to be completed towards the end of the fourth quarter
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | 2021 | Q2 2022 | |
|---|---|---|---|---|---|---|
| Amounts in USD million (except per share data) | Unaudited | Unaudited | Unaudited | Unaudited | Audited | Unaudited |
| Contract sales | 1.6 | 7.4 | 1.9 | 7.6 | 7.6 | 0.2 |
| Multi-client sales | 3.8 | 4.0 | 14.1 | 12.2 | 15.9 | 5.4 |
| Other revenue | 1.2 | 1.3 | 3.8 | 4.0 | 5.3 | 1.3 |
| Total revenues | 6.6 | 12.7 | 19.8 | 23.8 | 28.9 | 6.9 |
| Operating profit/ (loss) | 1.4 | 7.3 | 6.1 | 8.4 | 9.2 | 2.4 |
| Income/ (loss) before income taxes | 0.8 | 5.3 | 4.2 | 4.4 | 5.3 | 1.9 |
| Net income/ (loss) | 0.8 | 4.7 | 4.3 | 3.7 | 4.9 | 1.9 |
| Earnings/ (loss) per share | 0.01 | 0.04 | 0.03 | 0.03 | 0.04 | 0.01 |
| Average number of shares outstanding (in thousands) | 130,970 | 130,970 | 130,970 | 130,970 | 130,970 | 130,970 |
| EBITDA | 3.8 | 9.7 | 13.5 | 16.7 | 19.4 | 5.3 |
| Multi-client investments | 0.4 | 0.1 | 1.2 | 0.6 | 1.4 | 0.8 |
| Vessel and office lease | 2.0 | 2.1 | 4.4 | 5.5 | 6.9 | 1.6 |
| Adjusted EBITDA | 1.4 | 7.6 | 7.9 | 10.6 | 11.0 | 2.8 |
For the third quarter of 2022 EMGS recorded revenues of USD 6.6 million, down from USD 12.7 million reported for the corresponding quarter of 2021. Contract and other sales totalled USD 1.6 million, while multi-client sales amounted to USD 3.8 million. For the third quarter of 2021, contract and other sales totalled USD 7.4 million, while multi-client sales amounted to USD 4.0 million.
For the first nine months of 2022 revenues amounted to USD 19.8 million, compared with USD 23.8 million for the first nine months of 2021.
For the third quarter of 2022 charter hire, fuel and crew expense, excluding vessel lease expenses and multi-client expenses, amounted to USD 1.3 million, compared with USD 1.7 million in the third quarter of 2021. The Company capitalised USD 0.4 million of the charter hire, fuel and crew expenses as multi-client expenses in the quarter, while USD 0.1 million of charter hire, fuel and crew expenses were capitalised in the third quarter of 2021. When adding back the vessel lease expenses and the capitalised multi-client expenses, the charter hire, fuel and crew expenses have remained constant at USD 3.6 million in both the third quarter of 2021 and in same period this year.
For the first nine months of 2022, charter hire, fuel and crew expenses totalled USD 1.9 million, down from USD 2.6 million in the same period in 2021.
For the third quarter of 2022 employee expenses amounted to USD 0.8 million, which was the same as the third quarter of 2021.
For the first nine months of 2022 employee expenses were USD 2.2 million, down slightly from USD 2.3 million in the same period of 2021.
For the third quarter of 2022 other operating expenses totalled USD 0.7 million, compared to USD 0.6 million in the third quarter of 2021.
For the first nine months of 2022, other operating expenses amounted to USD 2.1 million, down from USD 2.2 million in the same period last year.
For the third quarter of 2022 depreciation and ordinary amortisation totalled USD 2.1 million, down from USD 2.2 million in the third quarter of 2021.
For the third quarter of 2022 no impairments of long-term assets were made, neither were they made in the same period last year.
For the first nine months depreciation and ordinary amortisation totalled USD 5.8 million, compared to USD 6.0 million in 2021.
For the third quarter of 2022 multi-client amortisation amounted to USD 0.2 million, compared to USD 0.3 million in the third quarter of 2021. The Company uses straight-line amortisation for its completed multi-client projects, assigned over the useful lifetime of 4 years.
For the first nine months of 2022 multi-client amortisation totalled USD 1.7 million, down from USD 2.2 million in 2021.
For the third quarter of 2022 net financial items ended at negative USD 0.6 million, compared with negative USD 2.0 million in the corresponding quarter last year. In the third quarter of 2022, the Group recorded an interest expense of USD 0.5 million compared with an interest expense of USD 0.7 million in the third quarter of 2021. In the third quarter of 2022, the Company recorded a net currency loss of USD 93 thousand, compared with a currency loss of USD 185 thousand in the third quarter of 2021.
In the first nine months of 2022, net financial items were negative USD 1.9 million, compared with a negative USD 4.0 million in the first nine months of 2021.
For the third quarter of 2022 profit before income taxes amounted to USD 0.8 million, compared with profit before income taxes of USD 5.3 million in the corresponding quarter in 2021.
For the first nine months profit before income taxes amounted to USD 4.2 million, compared with a profit before income taxes of USD 4.4 million in the same period last year.
For the third quarter of 2022 no income tax expense was recorded, compared with USD 0.7 million income tax expense in the third quarter of 2021.
For the first nine months income tax expense was negative USD 33 thousand, compared with USD 0.7 million in the same period in 2021.
For the third quarter of 2022 profit amounted to USD 0.8 million, down from a profit of USD 4.7 million in the same period last year.
For the first nine months of 2022 profit was USD 4.3 million, up from a profit of USD 3.7 million in the same period last year.
In the third quarter 2022, net cash flow from operating activities was positive USD 3.0 million, compared with positive net cash flow of USD 7.4 million in the third quarter of 2021.
In the third quarter 2022, EMGS deposited USD 3.5 million in a restricted account as security for a letter of credit issued related to the multi-client survey in East Canada. The letter of credit is expected to be cancelled and funds released from the restricted account in the fourth quarter of 2022.
In the first nine months of 2022, net cash flow from operating activities was positive USD 9.1 million, compared with positive USD 22.3 million in the same period last year.
EMGS applied USD 0.9 million in investing activities in the third quarter this year, compared with USD 0.2 in investing activities in the third quarter of last year. The Company invested USD 0.2 million in equipment and USD 0.7 million in the multi-client library in the third quarter 2022.
Cash flow from investing activities in the first nine months of this year amounted to a negative USD 1.9 million, compared with a negative USD 1.4 million in the same period last year. The Company invested USD 0.2 million in equipment, USD 33 thousand in intangible assets and USD 1.6 million in the multi-client library in the first nine months of 2022.
The carrying value of the multi-client library was USD 2.4 million as of 30 September 2022, compared to USD 2.4 million as of 31 December 2021 and USD 2.3 million as of 30 September 2021. EMGS capitalised USD 0.7 million related to the multi-client survey in East Canada, all of which will be amortised when the revenue is recognised.
Cash flow from financial activities was negative USD 2.4 million in the third quarter of 2022, compared with a negative cash flow of USD 5.7 million in the same quarter last year.
Cash flow from financial activities for the first nine months of 2022 amounted to negative USD 5.8 million, compared with a negative USD 10.4 million in the same period of 2021.
The Company had a net decrease in cash, excluding restricted cash, of USD 0.2 million during the third quarter of 2022. As of 30 September 2022, free cash and cash equivalents totalled USD 11.4 million and restricted cash totalled USD 4.1 million.
Total borrowings were USD 24.4 million as of 30 September 2022, up from USD 24.3 million as of 31 December 2021 and down from USD 28.2 million as of 30 September 2021. This includes the Company's convertible bond loan, which had a carrying value of USD 24.5 million recorded as non-current borrowings and USD 1.9 million recorded as equity in accordance with IFRS.
The convertible bond loan contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million. In addition, the convertible bond agreement has restrictions regarding the Company´s ability to sell or otherwise dispose of the multi-client library, declare or make dividend payments, incur additional indebtedness, change its business or enter into speculative financial derivative agreements. As of 30 September 2022, the free cash and cash equivalents totalled USD 11.4 million and restricted cash totalled USD 4.1 million.
| Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | |
|---|---|---|---|---|---|
| Proprietary work | 12% | 0 % | 0 % | 0 % | 42% |
| Multi-client projects | 10% | 18% | 0 % | 44% | 6 % |
| Total utilisation | 22% | 18% | 0 % | 44% | 48% |
The vessel utilisation for the third quarter of 2022 was 22% compared with 48% in the corresponding quarter of 2021. For the first nine months of this year, the vessel utilisation was 13% compared with 28% for the same period last year.
In the third quarter of 2022, the Company's vessel was allocated 10% to multi-client projects and 12% on proprietary work. In the comparable quarter of 2021, 6% was allocated to multi-client projects and 42% on proprietary work.
EMGS recorded 3.0 vessel months in the quarter. In the third quarter 2021, the Company recorded 3.0 vessel months in the quarter.
| Utilisation | Status | Firm | Remaining | ||
|---|---|---|---|---|---|
| Q3 2022 | Q3 2022 | charter period | Option periods | ||
| Atlantic Guardian | 22% | In operation | 20 October 2023 | 3 x 12 months |
EMGS is a member of the ATLAB consortium at NTNU. The consortium was formed to collect geophysical data to improve the understanding of the nature, dynamics and diversities of the mid-ocean ridges and oceanic plates including the formation and distribution of marine mineral deposits. EMGS successfully completed a geophysical data acquisition program in the Loki's Castle and Mohn's Treasure area of the Mid-Atlantic Ridge in the Norwegian economic zone for the consortium.
EMGS acquired a suite of multi-physics data from the Atlantic Guardian, including nodal CSEM, MT, High Frequency deeptowed CSEM, towed seismic, OBN seismic, multi-beam bathymetry and environmental sampling.
Upon successful completion of the proprietary marine mineral survey in the Mid-Atlantic Ridge for the ATLAB consortium and a multi-client survey in East Canada, the Atlantic Guardian started transit towards Trinidad and Tobago to commence a proprietary survey for Woodside.
As of 30 September 2022, EMGS' backlog was USD 14.5 million, compared with a backlog of USD 2.9 million as of the end of the third quarter 2021.
In February 2022, the maturity date of the convertible bond (EMGS03) was extended by 24 months from May 2023 to May 2025. The interest margin of the convertible bond was increased by 100 bps from 5.5 to 6.5 per cent over the applicable reference rate.
In March 2022, EMGS announced USD 2.8 million in revenue from late sales and a change of control event related to its existing multi-client library in Norway.
In March 2022, EMGS announced net uplifts in the amount of approximately USD 1 million related to its existing multi-client library in Norway. In April 2022, additional uplifts of USD 1 million were announced.
In April 2022, EMGS announced that the Company had secured a total of USD 2.8 million in pre-funding related to a multiclient survey in Norway.
In June 2022, the Company announced USD 1.4 million in late sales and USD 1.2 million from a change of control event related to the existing multi-client library in Norway.
In July 2022, EMGS was awarded a proprietary survey for CSEM acquisition in Trinidad and Tobago with a maximum value of approximately USD 11 million. The survey commenced in October 2022.
In July 2022, EMGS announced that the Company had secured USD 3.8 million in revenue from uplifts related to its existing multi-client library in Norway.
In July 2022, EMGS secured USD 2 million in pre-funding for a multi-client survey offshore East Canada. The survey was completed in September 2022.
In August 2022, EMGS was selected as the acquisition provider for the NTNU ATLAB consortium. The contract value was approximately USD 1 million, and acquisition was successfully completed in August 2022.
Commenced acquisition on the survey in Trinidad and Tobago. Acquisition is expected to be completed towards the end of the fourth quarter.
EMGS was listed at the Oslo Stock Exchange in March 2007. During the third quarter 2022, the EMGS share was traded between NOK 1.70 and NOK 2.42 per share. The last closing price on 30 September 2021 was NOK 1.83.
As of 30 September 2022, the Company had a total of 130,969,690 shares outstanding.
The most important risk factor for EMGS is the demand for EM services. Historically, demand for EM services has been correlated with the oil price, which can be volatile, unpredictable and is subject to upward and downward pressure from economic, environmental, political, and other factors. The Company expects that this correlation will remain going forward. As EM surveys are considered a niche product to many E&P companies, demand can quickly change in response to changes in the oil price.
The Company's convertible bond loan due in 2025 contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million. As of 30 September 2022, the free cash and cash equivalents totalled USD 11.4 million.
In the third quarter of 2022 the vessel successfully completed a marine mineral exploration survey in Norway and a fully prefunded multi-clientsurvey in East Canada, prior to commencing transit to Trinidad and Tobago.
Reference is made to the 2021 Annual Report for a further description of other relevant and important risk factors.
The third quarter of 2022 represents the sixth consecutive profitable quarter for EMGS. The performance over the last six quarters has enabled EMGS to return to positive equity, reduce the convertible bond loan by USD 8 million and continue to strengthen the balance sheet.
EMGS has increased the backlog as compared to the end of the second quarter of 2022 by USD 14.1 million. EMGS is working towards securing additional backlog for the first quarter of 2023, which has traditionally been a slow quarter. While building on the existing backlog is a priority for EMGS, the negotiated flexibility in the vessel charter for the Atlantic Guardian enables EMGS to significantly reduce cash burn during periods of low utilisation.
Multi-client late sales have been and will continue to be an important part of EMGS' revenue stream, generating cash in addition to acquisition contracts. The first, second and third quarter of 2022 were all dependent on late sales to attain a profitable quarter. Late sales typically have a short sales cycle and are not a predictable revenue stream.
The setup used in the ATLAB survey, as detailed in the Operational Review section of this report, will form the basis for EMGS's Multiphysics offering towards marine mineral exploration and potentially offshore wind site surveys.
The Company maintains its cutting-edge technological position in the EM market and is well-positioned to be able to capitalise on any upturn in the market with a more streamlined and efficient organisation.
Oslo, 08 November 2022
Board of Directors and CEO
| September | September | ||||
|---|---|---|---|---|---|
| Amounts in USD 1 000 | Q3 2022 Unaudited |
Q3 2021 Unaudited |
YTD 2022 Unaudited |
YTD 2021 Unaudited |
2021 Audited |
| Operating revenues | |||||
| Contract sales | 1,607 | 7,388 | 1,917 | 7,593 | 7,634 |
| Multi-client pre-funding | 0 | 0 | 2,793 | 7,200 | 10,151 |
| Multi-client late sales/uplift | 3,790 | 4,040 | 11,307 | 4,960 | 5,785 |
| Other revenue | 1,231 | 1,315 | 3,757 | 4,009 | 5,304 |
| Total revenues | 6,627 | 12,744 | 19,774 | 23,762 | 28,874 |
| Operating expenses | |||||
| Charter hire, fuel and crew expenses | 1,328 | 1,677 | 1,873 | 2,607 | 3,502 |
| Employee expenses | 849 | 769 | 2,226 | 2,255 | 3,012 |
| Depreciation and ordinary amortisation | 978 | 1,076 | 3,147 | 3,226 | 4,207 |
| Depreciation right-of-use assets | 1,124 | 1,085 | 2,627 | 2,810 | 3,524 |
| Multi-client amortisation | 234 | 253 | 1,651 | 2,233 | 2,457 |
| Impairment of long-term assets | 0 | 0 | 0 | 0 | 0 |
| Other operating expenses | 694 | 559 | 2,137 | 2,189 | 2,964 |
| Total operating expenses | 5,206 | 5,419 | 13,661 | 15,320 | 19,665 |
| Operating profit/ (loss) | 1,421 | 7,325 | 6,112 | 8,442 | 9,209 |
| Financial income and expenses | |||||
| Interest income | 144 | 13 | 168 | 23 | 28 |
| Interest expense | -528 | -741 | -1,724 | -2,251 | -2,925 |
| Interest expense lease liabilities | -171 | -177 | -368 | -615 | -762 |
| Impairment financial assets | 0 | -1,920 | 0 | -1,920 | -1,920 |
| Net gains/(losses) of financial assets and liabilities | 0 | 1,000 | 0 | 1,000 | 2,000 |
| Net foreign currency income/(loss) | -93 | -185 | 40 | -245 | -290 |
| Net financial items | -649 | -2,011 | -1,884 | -4,007 | -3,869 |
| Income/ (loss) before income taxes | 772 | 5,314 | 4,228 | 4,434 | 5,339 |
| Income tax expense | 0 | 651 | -33 | 733 | 417 |
| Income/ (loss) for the period | 772 | 4,663 | 4,261 | 3,701 | 4,922 |
| Amounts in USD 1 000 | Q3 2022 Unaudited |
Q3 2021 Unaudited |
September YTD 2022 Unaudited |
September YTD 2021 Unaudited |
2021 Audited |
|---|---|---|---|---|---|
| Income/ (loss) for the period | 772 | 4,663 | 4,261 | 3,701 | 4,922 |
| Other comprehensive income | |||||
| Other comprehensive income to be reclassified to profit or | |||||
| loss in subsequent periods: | |||||
| Exchange differences on translation of foreign operations | -1 | -23 | -2 | -23 | -25 |
| Other comprehensive income/(loss) | -1 | -23 | -2 | -23 | -25 |
| Actuarial gains/(losses) on defined benefit plans | 0 | 0 | 0 | 0 | 0 |
| Other comprehensive income | -1 | -23 | -2 | -23 | -25 |
| Total other comprehensive income/(loss) for the period | 771 | 4,640 | 4,259 | 3,678 | 4,897 |
| 30 September 2022 30 September 2021 | 31 December 2021 | ||
|---|---|---|---|
| Amounts in USD 1 000 | Unaudited | Unaudited | Audited |
| ASSETS | |||
| Non-current assets | |||
| Multi-client library | 2,363 | 1,316 | 2,412 |
| Other intangible assets | 160 | 544 | 422 |
| Property, plant and equipment | 10,114 | 13,563 | 12,747 |
| Right-of-use assets | 6,304 | 5,472 | 4,465 |
| Financial lease receivables | 0 | 9 4 | 7 2 |
| Assets under construction | 3 | 3 | 3 |
| Total non-current assets | 18,945 | 20,992 | 20,121 |
| Current assets | |||
| Spare parts, fuel, anchors and batteries | 4,201 | 4,626 | 3,813 |
| Trade receivables | 3,005 | 997 | 1,267 |
| Other receivables | 3,788 | 3,939 | 3,759 |
| Financial lease receivables | 7 3 | 6 8 | 6 8 |
| Cash and cash equivalents | 11,381 | 14,685 | 9,855 |
| Restricted cash | 4,136 | 1,219 | 1,278 |
| Total current assets | 26,583 | 25,535 | 20,041 |
| Total assets | 45,528 | 46,527 | 40,162 |
| EQUITY | |||
| Capital and reserves attributable to equity holders | |||
| Share capital, share premium and other paid-in equity | 71,490 | 71,490 | 71,490 |
| Other reserves | -1,572 | -1,567 | -1,570 |
| Retained earnings | -68,167 | -73,656 | -72,433 |
| Total equity | 1,749 | -3,735 | -2,514 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Provisions | 1,203 | 6,016 | 4,812 |
| Borrowings | 24,437 | 28,163 | 24,295 |
| Non-current leasing liabilities | 640 | 893 | 522 |
| Total non-current liabilities | 26,281 | 35,071 | 29,629 |
| Current liabilities | |||
| Trade payables | 2,000 | 1,509 | 1,981 |
| Current tax liabilities | 3,365 | 3,584 | 3,376 |
| Other short term liabilities | 5,309 | 3,272 | 1,451 |
| Current leasing liabilities | 6,823 | 6,826 | 6,239 |
| Total current liabilities | 17,498 | 15,191 | 13,048 |
| Total liabilities | 43,779 | 50,262 | 42,677 |
| Total equity and liabilities | 45,528 | 46,527 | 40,162 |
| Year to date | Year to date | ||||
|---|---|---|---|---|---|
| Amounts in USD 1 000 | Q3 2022 Unaudited |
Q3 2021 Unaudited |
2022 Unaudited |
2021 Unaudited |
2021 Audited |
| Net cash flow from operating activities | |||||
| Income/(loss) before income taxes | 772 | 5,314 | 4,228 | 4,434 | 5,339 |
| Adjustments for: | |||||
| Total taxes paid | 0 | -703 | 0 | -1,067 | -1,076 |
| Depreciation and ordinary amortisation | 978 | 1,076 | 3,147 | 3,226 | 4,207 |
| Depreciation right-of-use assets | 1,423 | 1,185 | 3,015 | 3,543 | 4,751 |
| Multi-client amortisation | 234 | 253 | 1,651 | 2,233 | 2,457 |
| Impairment of other long term assets | 0 | 0 | 0 | 0 | 0 |
| Cost of share-based payment | 1 | 2 | 3 | 5 | 6 |
| Change in trade receivables | 473 | 2,936 | -1,738 | 5,249 | 4,979 |
| Change in inventories | -548 | 203 | -388 | 101 | 913 |
| Change in trade payables | -411 | -808 | 18 | 48 | 520 |
| Change in other working capital | -362 | -1,953 | -2,547 | 2,815 | 55 |
| Finance Income | -144 | -1,013 | -168 | -1,023 | -2,028 |
| Finance Cost | 625 | 859 | 1,920 | 2,717 | 3,498 |
| Net cash flow from operating activities | 3,042 | 7,351 | 9,142 | 22,281 | 23,621 |
| Investing activities: | |||||
| Purchase of property, plant and equipment | -171 | -2 | -219 | -44 | -90 |
| Investment in multi-client library | -682 | -207 | -1,602 | -1,339 | -2,659 |
| Purchase of intangible assets | 0 | 0 | -33 | 0 | 0 |
| Cash used in investing activities | -853 | -209 | -1,855 | -1,383 | -2,749 |
| Financial activities: | |||||
| Financial lease principal | -1,846 | -1,954 | -4,151 | -5,045 | -6,206 |
| Interest lease liabilities | -171 | -177 | -368 | -615 | -762 |
| Repayment of loan | 0 | -3,000 | 0 | -3,000 | -6,000 |
| Interest paid | -521 | -532 | -1,409 | -1,756 | -2,257 |
| Interest received | 144 | 13 | 168 | 23 | 28 |
| Cash used in/provided by financial activities | -2,394 | -5,650 | -5,761 | -10,393 | -15,197 |
| Net change in cash | -206 | 1,492 | 1,526 | 10,505 | 5,676 |
| Cash balance beginning of period | 11,587 | 13,193 | 9,855 | 4,179 | 4,179 |
| Cash balance end of period | 11,381 | 14,685 | 11,381 | 14,685 | 9,855 |
| Net change in cash | -206 | 1,492 | 1,526 | 10,506 | 5,676 |
| share premium Foreign currency and other paid-in translation capital Retained earnings Total equity Amounts in USD 1 000 reserves Balance as of 31 December 2020 (Audited) 71,490 -1,544 -77,361 -7,417 Income/(loss) for the period 0 0 -3,602 -3,602 Other comprehensive income 0 0 0 0 Total comprehensive income 0 0 -3,602 -3,602 Cost of share-based payments 0 0 1 1 Balance as of 31 March 2021 (Unaudited) 71,490 -1,544 -80,962 -11,018 Income/(loss) for the period 0 0 2,640 2,640 Other comprehensive income 0 0 0 0 Total comprehensive income 0 0 2,640 2,640 Cost of share-based payments 0 0 2 2 Balance as of 30 June 2021 (Unaudited) 71,490 -1,544 -78,320 -8,376 Income/(loss) for the period 0 0 4,663 4,663 Other comprehensive income 0 -23 0 -23 Total comprehensive income 0 -23 4,663 4,640 Cost of share-based payments 0 0 2 2 Balance as of 30 September 2021 (Unaudited) 71,490 -1,567 -73,656 -3,735 Income/(loss) for the period 0 0 1,221 1,221 Other comprehensive income 0 -2 0 -2 Total comprehensive income 0 -2 1,221 1,219 Cost of share-based payments 0 0 2 2 Balance as of 31 December 2021 (Audited) 71,490 -1,570 -72,433 -2,514 Income/(loss) for the period 0 0 1,638 1,638 Other comprehensive income 0 0 0 0 Total comprehensive income 0 0 1,638 1,638 Cost of share-based payments 0 0 1 1 Balance as of 31 March 2022 (Unaudited) 71,490 -1,569 -70,794 -875 Income/(loss) for the period 0 0 1,851 1,851 Other comprehensive income 0 -2 0 -2 Total comprehensive income 0 -2 1,851 1,849 Cost of share-based payments 0 0 2 2 Balance as of 30 June 2022 (Unaudited) 71,490 -1,571 -68,941 976 Income/(loss) for the period 0 0 772 772 Other comprehensive income 0 -1 0 -1 Total comprehensive income 0 -1 772 771 Cost of share-based payments 0 0 2 2 Balance as of 30 September 2022 (Unaudited) 71,490 -1,572 -68,167 1,749 |
Share capital | ||
|---|---|---|---|
These interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as of 31 December 2021, which are available on www.emgs.com.
EMGS reports its sales revenue as one reportable segment. The sales revenues and related costs are incurred worldwide. The amounts below show sales revenues reported by geographic region.
| September | September | ||||
|---|---|---|---|---|---|
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | 2021 | |
| Amounts in USD million | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
| Americas | 0.1 | 2.6 | 0.2 | 9.9 | 10.2 |
| Asia/Pacific | 0.0 | 7.3 | 0.0 | 7.4 | 7.4 |
| EAME | 6.6 | 2.8 | 19.5 | 6.5 | 11.4 |
| Total | 6.6 | 12.7 | 19.7 | 23.8 | 28.9 |
The multi-client library consists of electromagnetic data acquired through multi-client surveys i.e., EMGS owns the data. The EM data can be licensed to customers on a non-exclusive basis. Directly attributable costs associated with multi-client projects such as acquisition costs, processing costs, and other direct project costs are capitalised.
| September | September | ||||
|---|---|---|---|---|---|
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | 2021 | |
| Amounts in USD million | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
| Opening carrying value | 1.9 | 1.4 | 2.4 | 2.2 | 2.2 |
| Additions | 0.7 | 0.2 | 1.6 | 1.3 | 2.7 |
| Amortisation charge | -0.2 | -0.3 | -1.6 | -2.2 | -2.5 |
| Impairment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Closing carrying value | 2.4 | 1.3 | 2.4 | 1.3 | 2.4 |
This quarterly report includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets and potential clients for EMGS ASA and its subsidiaries.
These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or could be major markets for EMGS' businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be relevant from time to time.
Although EMGS ASA believes that its expectations and the information in this report were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this report. Neither EMGS ASA nor any other company within the EMGS Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the report, and neither EMGS ASA, any other company within the EMGS Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the report.
EMGS ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the report.
For further information, visit www.emgs.com, or contact:
Anders Eimstad CFO Email: [email protected] Phone: +47 948 25 836
EMGS' financial information is prepared in accordance with IFRS. In addition, EMGS provides alternative performance measures to enhance the understanding of EMGS' performance. The alternative performance measures presented by EMGS may be determined or calculated differently by other companies.
EBITDA means Earnings before interest, taxes, amortisation, depreciation and impairments. EMGS uses EBITDA because it is useful when evaluating operating profitability as it excludes amortisation, depreciation and impairments related to investments that occurred in the past and are not cash-flow items. Also, the measure is useful when comparing the Company's performance to other companies.
| September | September | ||||
|---|---|---|---|---|---|
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | 2021 | |
| Amounts in USD 1 000 | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
| Operating profit / (loss) | 1,421 | 7,325 | 6,112 | 8,442 | 9,209 |
| Depreciation and ord. amortisation | 2,102 | 2,161 | 5,774 | 6,035 | 7,731 |
| Multi-client amortisation | 234 | 253 | 1,651 | 2,233 | 2,457 |
| Impairment of long term assets | 0 | 0 | 0 | 0 | 0 |
| EBITDA | 3,757 | 9,739 | 13,537 | 16,710 | 19,396 |
Adjusted EBITDA means EBITDA (see above) less multi-client investment (capitalisation) and less the cost of vessel and office leases.
EMGS uses Adjusted EBITDA because the Company believes this provides users of the financial reporting with a clearer picture when evaluating the operating profitability regardless of whether the Company is working on a multi-client or a proprietary survey. The Adjusted EBITDA measure includes the gross cash costs of the Company. The Adjusted EBITDA adds back cash items as capitalised multi-client expenses and vessel and office lease expenses to the costs included in the adjusted EBITDA.
Backlog is defined as the total nominal value of future revenue from signed customer contracts. EMGS believes that the backlog figure is a useful measure in that it provides an indication of the amount of committed activity in the coming periods.
EMGS Headquarters Karenslyst Allè 4 , 4th Floor N-0278 Oslo, Norway
17 Third Quarter 2022. 17 17
emgs.com [email protected]
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