Electromagnetic Geoservices ASA

Earnings Release • Nov 10, 2021

EMGS: reports third quarter 2021 results

EMGS: reports third quarter 2021 results

Electromagnetic Geoservices ASA's ("EMGS" or the "Company") financial report and

market presentation for the third quarter of 2021 are attached.

Highlights:

* The Company recorded revenues of USD 12.7 million, up from USD 2.1 million in

the third quarter of 2020 and up from USD 9.4 million in the second quarter of

* Adjusted EBITDA (including capitalised multi-client expenses and vessel and

office lease expenses) of USD 7.6 million, up from negative USD 1.2 million in

the third quarter of 2020.

* Free cash increased with USD 1.5 million during the quarter, to USD 14.7

million.

* EMGS completed a partial voluntary bond buy-back with a total nominal value of

USD 4.0 million.

* EMGS impaired USD 2.1 million held in Accendo Banco S.A after regulators

revoked their banking license.

* Subsequent to the end of the third quarter 2021, EMGS' chairman of the board

of directors stepped down.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"The third quarter was strong both in terms of revenue and profitability, and in

terms of operational performance. Our cash position remains strong.

While we are now working on planning for the 2022 acquisition season, we

maintain our continuous focus on delivering on late-sales from our extensive

multi-client library, consulting and software services, and our initiatives with

respect to positioning the Company for the future marine minerals exploration

market."

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 (http://www.emgs.com)) and follow the link.

Contact

Anders Eimstad, Chief Financial Officer, +47 94 82 58 36

About EMGS

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.