Earnings Release • May 7, 2020
Earnings Release
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| Q1 2020 | Q1 2019 | 2019 | Q4 2019 | |
|---|---|---|---|---|
| Amounts in USD million (except per share data) | Unaudited | Unaudited | Audited | Unaudited |
| Contract sales | 9.6 | 3.1 | 54.4 | 21.6 |
| Multi-client sales | 0.3 | 6.9 | 26.1 | 9.0 |
| Other revenue | 1.4 | 0.7 | 8.8 | 6.6 |
| Total revenues | 11.3 | 10.8 | 89.4 | 37.2 |
| Operating profit/ (loss) | -8.5 | -4.4 | 22.5 | 18.6 |
| Income/ (loss) before income taxes | -9.6 | -6.0 | 16.7 | 18.5 |
| Net income/ (loss) | -9.6 | -6.0 | 15.0 | 17.9 |
| Earnings/ (loss) per share | -0.07 | -0.05 | 0.11 | 0.14 |
| Average number of shares outstanding (in thousands) | 130,970 | 130,970 | 130,970 | 130,970 |
| EBITDA | 3.1 | 2.6 | 49.9 | 24.8 |
| Multi-client investments | 0.1 | 0.0 | 0.8 | 0.0 |
| Vessel and office lease | 3.9 | 3.8 | 15.7 | 3.9 |
| Adjusted EBITDA | -0.8 | -1.2 | 33.3 | 20.9 |
EBITDA = Operating profit /(loss) + Depreciation and ordinary amortisation + Multi-client amortisation + Impairment of long-term assets.
EMGS recorded revenues of USD 11.3 million in the first quarter of 2020, up from USD 10.8 million reported for the corresponding quarter of 2019. Contract and other sales totalled USD 11.0 million, while multi-client sales amounted to USD 0.3 million. For the first quarter of 2019, contract and other totalled USD 3.9 million, while multi-client sales amounted to USD 6.9 million.
Charter hire, fuel and crew expenses totalled USD 3.9 million in the first quarter this year, compared with USD 2.4 million in the first quarter of 2019. The Company capitalised USD 0.1 million of multi-client expenses in the first quarter of 2020, while no capitalisation of multi-client expenses was made in the first quarter of 2019. The charter hire, fuel and crew expenses totalled USD 7.7 million in the first quarter of 2020 compared with USD 6.0 million in the first quarter of 2019 when adding back the vessel lease expenses and multi-client investments in the first quarter of 2020 and vessel lease expenses in the first quarter of 2019.
Employee expenses amounted to USD 3.2 million in the first quarter of 2020, down from USD 4.7 million in the same quarter in 2019.
Other operating expenses totalled USD 1.3 million in the first quarter this year which is the same as the comparable quarter of 2019 when adding back the office lease expenses.
Depreciation and ordinary amortisation totalled USD 4.9 million in the first quarter of 2020, down from USD 5.2 million in the first quarter of 2019.
Multi-client amortisation amounted to USD 1.0 million this quarter, compared with USD 1.8 million in the first quarter of 2019. The decrease is a result of some of the multi-client projects with a carrying value in the first quarter last year being fully amortised this year. The Group uses straight-line amortisation for its completed multi-client projects, assigned over the useful lifetime of 4 years.
Impairment of long-term assets totalled USD 5.8 million in the first quarter of 2020, while no expenses were recorded in the corresponding quarter in 2019. The increase is due to the impairment of the DeepBlue in the amount of USD 5.0 million and the USD 0.8 million impairment to the multi-client library.
Net financial items ended at negative USD 1.1 million in the first quarter of 2020, compared with negative USD 1.6 million in the corresponding quarter last year. In the first quarter of 2020, the Group recorded a net currency income of USD 0.5 million, compared with a currency income of USD 0.2 million in the first quarter of 2019. In the first quarter of 2020, the Group recorded an interest expense of USD 1.7 million compared with an interest expense of USD 1.8 million in the first quarter of 2019.
Loss before income taxes amounted to USD 9.6 million in the first quarter 2020, compared with a loss before income taxes of USD 6.0 million in the corresponding quarter in 2019.
Income tax expenses of USD 3 thousand were recorded in the first quarter of 2020, compared with an income tax expense of USD 8 thousand in the first quarter of 2019.
Lossfor the first quarter of 2020 amounted to USD 9.6 million, compared to a loss of USD 6.0 million in the same period in 2019.
In the first quarter 2020, net cash flow from operating activities was USD 1.0 million, compared with a net cash flow of USD 7.8 million in the first quarter of 2019.
EMGS applied USD 0.5 million in investing activities in the first quarter this year, compared with USD 0.3 million in the first quarter of last year. The Company invested USD 0.3 million in property, plant and equipment and USD 0.2 million in the multiclient library in the first quarter of 2020.
The carrying value of the multi-client library was USD 4.3 million at 31 March 2020, down from USD 6.0 million at 31 December 2019 and USD 10.8 million at 31 March 2019.
Cash flow from financial activities was negative USD 4.2 million in the first quarter of 2020, compared with negative USD 4.4 million in the same quarter last year.
The Company had a net decrease in cash, excluding restricted cash, of USD 3.7 million during the first quarter of 2020. At 31 March 2020, cash and cash equivalents totalled USD 16.0 million.
Total borrowings were USD 31.4 million at 31 March 2020, compared to USD 31.2 million at 31 December 2019 and USD 30.9 million at 31 March 2019. This includes the Company's bond loan, which had a carrying value of USD 31.4 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 31 March 2020, the free cash and cash equivalents totalled USD 16.0 million.
| Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | |
|---|---|---|---|---|---|---|
| Proprietary work | 20% | 80% | 73% | 45% | 11% | 32% |
| Multi-client projects | 6 % | 0 % | 0 % | 28% | 0 % | 0 % |
| Total utilisation | 26% | 80% | 73% | 73% | 11% | 32% |
The vessel utilisation for the first quarter 2020 was 26% compared with 11% in the corresponding quarter in 2019.
The vessels were allocated 20% to proprietary work in the first quarter of 2020 and 6% to multi-client projects. In the comparable quarter of 2019, the vessels were allocated 11% to proprietary work no time was spent on multi-client projects.
EMGS had two vessels on charter and recorded 6.0 vessel months in the quarter. In the first quarter 2019, the Company also had two vessels on charter.
| Utilisation Q1 2020 | Status Q1 2020 | Firm charter period | Remaining option periods | |
|---|---|---|---|---|
| Petrel Explorer | 40% | In operation | 31 March 2020 | |
| Atlantic Guardian | 11% | In operation | 30 September 2021 | 5 x 12 months |
The Atlantic Guardian spent the beginning of the first quarter completing the confirmed work for Pemex in Mexico. The vessel then transited in preparation for a proprietary survey offshore Mauritania and Senegal. Upon notification by the customer that the project was postponed, and subsequently terminated, the Atlantic Guardian started transit towards Norway.
The Petrel explorer started the first quarter transiting towards Mexico in preparation for additional acquisition work connected to the two-years acquisition contract. Upon notification by the customerthat no additional acquisition work forthcoming in the near to medium future, the Petrel Explorer transited to Norway to begin acquisition on a prefunded multi-client survey in Norway.
EMGS has extended the firm period of the charter to 31 May 2020.
As of 31 March 2020, EMGS' backlog was USD 44.7 million compared with a backlog of approximately USD 26.2 million at the end of the first quarter 2019. USD 39.9 million of the backlog as of 31 March 2020 is related to a proprietary project, USD 0.3 million is related to late sales, USD 3.1 million is related to a prefunded multi-client project and the remaining USD 1.4 million is related to processing, interpretation and other projects. Of the USD 39.9 million in backlog related to proprietary work, USD 38.6 million is related to optional additional work to which the customer has informed EMGS would not receive additional acquisition work in the near to medium future.
As of the date of this report, EMGS total backlog is approx. USD 44.2 million of which USD 38.6 million is optional backlog that is unlikely to materialise.
EMGS granted each employee 12.5 thousand share options for a total of approx. 1.5 million share options.
On 22 January 2020, EMGS announced that the Company had received an additional call-off of approximately USD 3.4 million as part of the multi-year acquisition contract.
On 20 February 2020, EMGS announced that the Company had been advised by the customer that no new additional acquisition work orders would be forthcoming in the near to medium future. The Company further announced that this would have a have a material detrimental effect on the Company's revenue and profitability going forward, that the Board was evaluating all strategic options available to the Company and that the Company would initiate a comprehensive cost reduction programme to adjust the Company's operational cost base to the new confirmed backlog level.
Mr. Johan Mikkelsen resigned as chairman of the board of directors effective 02 February 2020.
Petteri Soininen has been elected chairman of the board of directors for the period until the 2020 annual ordinary general meeting of EMGS.
In February 2020, EMGS deposited USD 1.4 million in the Pledged Depot account as part of the cash sweep mechanism as agreed with the Shareholder Guarantors. Additional deposit of USD 1.4 million was done in March.
As announced on 27 March 2020, the company terminated all employees and consultants with the exception of a skeleton crew of approximately 15 people. The Petrel Explorer will be returned at the end of May and the Atlantic Guardian has been cold stacked as of 15 April 2020.
Subsequent to the notification by the customer that the project would be postponed, EMGS received notification that the contract was terminated. EMGS received approximately USD 2 million in connection to the termination of the contract.
The multi-client library wasimpaired in the amount of USD 0.8 million due to a reduction in expected revenue. The events relating to Covid-19 and subsequent collapse in the oil price is considered a non-adjusting event and therefore effects Q1 2020 not 2019.
As a result of the cold stacking of the Atlantic Guardian and the subsequent reduction in expected revenue, the carrying amount of the DeepBlue wasreduced from USD 22.5 million at the end of December 2019 to USD 16.8 million at the end of March 2020.
As part of the ongoing cost reduction measures, the Company reduced the available Credit Facility with DNB from USD 10 million to USD 2.5 million.
In April 2020, EMGS deposited USD 0.4 million in the Pledged Depot account as part of the cash sweep mechanism as agreed with the Shareholder Guarantors.
EMGS was listed at the Oslo Stock Exchange in March 2007. During the first quarter 2020, the EMGS share was traded between NOK 0.57 and NOK 2.35 per share. The last closing price before 31 March 2019 was NOK 0.59.
EMGS is subject to a number ofrisk factors, of which the most important is the demand for EM services. Since 2014, there has been a substantial decline in E&P spending, as a result of a fall in the oil price, and a corresponding sharp deterioration of the market for geophysical services, including EMGS' services.
The Company's convertible bond loan due in 2023 contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million. As of 31 March 2020, the free cash and cash equivalents totalled USD 16.0 million. While EMGS' management follows the Company's liquidity risk closely, there remains material uncertainty related to the Company's ability to continue as a going concern. In particular, the Company is dependent upon certain key events materialising in a timely fashion. This includes the payment of a number of invoices related to the acquisition contract in the Americas, successful implementation of the cost cutting measures announced on 27 March 2020 as well as additional late sales in H2 2020 while the Atlantic Guardian is cold stacked. Should any of these events fail to materialise the Company will not continue as a going concern.
Reference is made to the Annual Report of 2019 for a further description of other relevant risk factors.
The market outlook for oil services is characterised by high uncertainty and the visibility remains low. Following the outbreak of the novel corona virus (Covid-19) and the resulting reduction in demand, the oil price has dropped significantly. A number of E&P companies have already responded by reducing their 2020 exploration spending budgets. Such reductions have severely affected the Company in the form of delays to planned (pipeline) projects and termination of already planned / confirmed projects.
The current market situation has necessitated the return of the Petrel Explorer, cold stacking of the Atlantic Guardian and terminating all employees with the exception of a team of approximately 15 persons.
Hence, the Company's efforts during 2020 will be primarily focused upon fulfilling existing contracts, realising near term late sales from the existing multi-client library and securing acquisition backlog for H1 2021. The Company will maximise preservation of liquidity while retaining the ability to execute on the objectives for this year. However, as also noted in the stock exchange notification published by the Company on 27 March 2020 announcing the transition to a low-cost set-up, even with these decisive actions, no guarantees can be given as to whether the Company will be able to preserve sufficient liquidity. The Company is not only dependent on implementing all of these cost reduction measures successfully and in a timely manner but will also need to identify and implement other material cost reduction measures including reducing the intertest bearing debt and non-interest bearing liabilities. Further, the Company is dependent upon receiving payment for the majority of the USD 5.5 million outstanding receivables and earned not invoiced revenue, as of 30 April 2020,related to the contract in the Americas. Should these events fail to materialise in a timely manner the Company will not be able to continue to operate.
2020 will be an uncertain and challenging year for the Company. However, the Company maintains its cutting-edge technological position in the EM market and is positioning itself to be able to capitalise on the upturn in the market with a more streamlined and efficient organisation.
Oslo, 6 May 2020 Board of Directors and CEO
| Amounts in USD 1 000 | Q1 2020 Unaudited |
Q1 2019 Unaudited |
2019 Audited |
|---|---|---|---|
| Operating revenues | |||
| Contract sales | 9,580 | 3,143 | 54,444 |
| Multi-client pre-funding | 0 | 0 | 4,608 |
| Multi-client late sales | 274 | 6,916 | 21,518 |
| Other revenue | 1,441 | 729 | 8,795 |
| Total revenues | 11,295 | 10,788 | 89,365 |
| Operating expenses | |||
| Charter hire, fuel and crew expenses | 3,901 | 2,405 | 14,596 |
| Employee expenses | 3,210 | 4,718 | 19,662 |
| Depreciation and ordinary amortisation | 1,491 | 1,864 | 6,240 |
| Depreciation right-of-use assets | 3,309 | 3,355 | 13,189 |
| Multi-client amortisation | 1,032 | 1,815 | 7,785 |
| Impairment of long-term assets | 5,825 | 0 | 152 |
| Other operating expenses | 1,050 | 1,036 | 5,215 |
| Total operating expenses | 19,818 | 15,193 | 66,839 |
| Operating profit/ (loss) | -8,523 | -4,405 | 22,526 |
| Financial income and expenses | |||
| Interest income | 7 7 | 7 2 | 1,830 |
| Interest expense | -1,353 | -1,301 | -5,449 |
| Interest expense lease liabilities | -319 | -507 | -1,827 |
| Net gains/(losses) of financial assets and liabilities | 0 | 0 | 1 3 |
| Net foreign currency income/(loss) | 518 | 155 | -346 |
| Net financial items | -1,078 | -1,581 | -5,779 |
| Income/ (loss) before income taxes | -9,602 | -5,986 | 16,747 |
| Income tax expense | 3 | 8 | 1,708 |
| Income/ (loss) for the period | -9,605 | -5,994 | 15,039 |
| Amounts in USD 1 000 | Q1 2020 Unaudited |
Q1 2019 Unaudited |
2019 Audited |
|---|---|---|---|
| Income/ (loss) for the period | -9,605 | -5,994 | 15,039 |
| Oher comprehensive income | |||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
|||
| Exchange differences on translation of foreign operations | -13 | 0 | 5 2 |
| Oher comprehensive income | -13 | 0 | 5 2 |
| Other comprehensive income | -13 | 0 | 5 2 |
| Total other comprehensive income/(loss) for the period | -9,618 | -5,994 | 15,091 |
| Amounts in USD 1 000 | 31 March 2020 Unaudited |
31 March 2019 Unaudited |
31 December 2019 Audited |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Multi-client library | 4,325 | 10,782 | 5,996 |
| Other intangible assets | 1,465 | 1,260 | 1,621 |
| Property, plant and equipment | 18,419 | 28,438 | 24,624 |
| Right-of-use assets | 12,439 | 22,575 | 15,955 |
| Assets under construction | 1,285 | 1,174 | 1,023 |
| Restricted cash | 0 | 2,924 | 0 |
| Total non-current assets | 37,933 | 67,153 | 49,219 |
| Current assets | |||
| Spare parts, fuel, anchors and batteries | 8,334 | 7,481 | 8,261 |
| Trade receivables | 14,232 | 2,162 | 23,503 |
| Other receivables | 7,431 | 6,860 | 4,213 |
| Cash and cash equivalents | 16,017 | 9,642 | 19,731 |
| Restricted cash | 3,241 | 2,395 | 618 |
| Total current assets | |||
| 49,254 | 28,540 | 56,326 | |
| Total assets | 87,187 | 95,693 | 105,545 |
| 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 | -1,544 | -1,584 | -1,531 |
| Retained earnings | -63,581 | -75,019 | -53,986 |
| Total equity | 6,363 | -5,115 | 15,971 |
| LIABILITIES Non-current liabilities |
|||
| Provisions | |||
| 13,234 31,372 |
18,863 30,881 |
14,437 31,199 |
|
| Borrowings Non-current leasing liabilities |
5,662 | 14,198 | 7,979 |
| Total non-current liabilities | 50,268 | 63,942 | 53,615 |
| Current liabilities | |||
| Trade payables | 5,246 | 5,372 | 8,254 |
| Current tax liabilities | 6,560 | 5,176 | 6,549 |
| Other short term liabilities | 9,717 | 14,980 | 10,807 |
| Current leasing liabilities | 9,033 | 11,339 | 10,349 |
| Total current liabilities | 30,556 | 36,866 | 35,959 |
| Total liabilities | 80,824 | 100,807 | 89,574 |
| Total equity and liabilities | 87,187 | 95,693 | 105,545 |
| Amounts in USD 1 000 | Q1 2020 Unaudited |
Q1 2019 Unaudited |
2019 Audited |
|---|---|---|---|
| Net cash flow from operating activities | |||
| Income/(loss) before income taxes | -9,602 | -5,986 | 16,747 |
| Adjustments for: | |||
| Withholding tax expenses | 8 | 8 9 | 0 |
| Total taxes paid | 3 | 0 | -239 |
| Depreciation and ordinary amortisation | 1,491 | 1,864 | 6,240 |
| Depreciation right-of-use assets | 3,442 | 3,355 | 13,189 |
| Multi-client amortisation and impairment | 1,876 | 1,815 | 7,785 |
| Impairment of other long term assets | 4,981 | 0 | 152 |
| Cost of share-based payment | 1 0 | 0 | 0 |
| Change in trade receivables | 9,271 | 2,472 | -18,869 |
| Change in inventories | -73 | -256 | -1,036 |
| Change in trade payables | -3,008 | -1,447 | 1,435 |
| Change in other working capital | -8,138 | 4,882 | 4,209 |
| Finance Income | -77 | -72 | -1,830 |
| Finance Cost | 849 | 1,129 | 3,177 |
| Net cash flow from operating activities | 1,033 | 7,845 | 30,959 |
| Investing activities: | |||
| Purchase of property, plant and equipment | -298 | -322 | -1,837 |
| Investment in multi-client library | -205 | 0 | -1,337 |
| Cash used in investing activities | -503 | -322 | -3,174 |
| Financial activities: | -67 | -72 | 183 |
| Financial lease payments - principal Financial lease liabilities |
|||
| Interest lease liabilities | -3,246 | -2,805 | -11,970 |
| -319 | -507 | -1,796 | |
| Net proceeds from new loan | 0 -689 |
0 | -18 |
| Interest paid Interest received |
7 7 | -1,055 7 2 |
-2,770 |
| Cash used in/provided by financial activities | 1,830 | ||
| -4,244 | -4,367 | -14,541 | |
| Net change in cash | -3,714 | 3,155 | 13,244 |
| Cash balance beginning of period | 19,731 | 6,487 | 6,487 |
| Cash balance end of period | 16,017 | 9,642 | 19,731 |
| Net change in cash | -3,714 | 3,155 | 13,244 |
| Share capital | ||||
|---|---|---|---|---|
| share premium | Foreign currency | |||
| and other paid-in | translation | |||
| Amounts in USD 1 000 | capital | reserves | Retained earnings | Total equity |
| Balance as of 1 January 2019 (Unaudited) | 71,490 | -1,584 | -69,025 | 879 |
| Income/(loss) for the period | 0 | 0 | -5,994 | -5,994 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| 0 | 0 | |||
| Total comprehensive income | 0 | 0 | -5,994 0 |
-5,994 0 |
| Cost of share-based payments Balance as of 31 March 2019 (Unaudited) |
||||
| 71,490 | -1,584 | -75,019 | -5,115 | |
| Income/(loss) for the period | 0 | 0 | -1,976 | -1,976 |
| Other comprehensive income | 0 | -1 | 0 | -1 |
| Total comprehensive income | 0 | -1 | -1,976 | -1,977 |
| Cost of share-based payments | 0 | 0 | 0 | 0 |
| Balance as of 30 June 2019 (Unaudited) | 71,490 | -1,584 | -76,995 | -7,091 |
| Income/(loss) for the period | 0 | 0 | 5,060 | 5,060 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 5,060 | 5,060 |
| Cost of share-based payments | 0 | 0 | 0 | 0 |
| Balance as of 30 September 2019 (Unaudited) | 71,490 | -1,584 | -71,935 | -2,031 |
| Income/(loss) for the period | 0 | 0 | 17,949 | 17,949 |
| Other comprehensive income | 0 | 5 3 | 0 | 5 3 |
| Total comprehensive income | 0 | 5 3 | 17,949 | 18,002 |
| Cost of share-based payments | 0 | 0 | 0 | 0 |
| Balance as of 31 December 2019 (Audited) | 71,490 | -1,531 | -53,986 | 15,971 |
| Income/(loss) for the period | 0 | 0 | -9,605 | -9,605 |
| Other comprehensive income | 0 | -13 | 0 | -13 |
| Total comprehensive income | 0 | -13 | -9,605 | -9,618 |
| Cost of share-based payments | 0 | 0 | 1 0 | 1 0 |
| Balance as of 31 March 2020 (Unaudited) | 71,490 | -1,544 | -63,581 | 6,363 |
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 2019, which is 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.
| Q1 2020 | Q1 2019 | 2019 | |
|---|---|---|---|
| Amounts in USD million | Unaudited | Unaudited | Audited |
| Americas | 7.8 | 2.1 | 32.5 |
| Asia/Pacific | 0.0 | 0.9 | 23.9 |
| EAME | 3.5 | 7.8 | 32.9 |
| Total | 11.3 | 10.8 | 89.4 |
The multi-client library consists of electromagnetic data acquired through multi-client surveys, i.e. EMGS owns the data or, as the case may be, holds exclusive rights to it (e.g. in jurisdictions where geophysical data can only be owned by the government / certain regulators). 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.
| Amounts in USD million | Q1 2020 Unaudited |
Q1 2019 Unaudited |
2019 Audited |
|---|---|---|---|
| 6.0 | 12.6 | 12.6 | |
| Opening carrying value | |||
| Additions | 0.2 | 0.0 | 1.3 |
| Amortisation charge | -1.0 | -1.8 | -7.8 |
| Impairment | -0.9 | 0.0 | -0.2 |
| Closing carrying value | 4.3 | 10.8 | 6.0 |
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. 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 for Electromagnetic Geoservices ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words 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 will 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 discussed from time to time. Although Electromagnetic Geoservices 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. Electromagnetic Geoservices 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 Electromagnetic Geoservices 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. Electromagnetic Geoservices 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 Interim 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. Also, the measure is useful when comparing the Company's performance to other companies.
| Q1 2020 | Q1 2019 | 2019 | |
|---|---|---|---|
| Amounts in USD 1 000 | Unaudited | Unaudited | Audited |
| Operating profit / (loss) | -8,523 | -4,405 | 22,526 |
| Depreciation and ord. amortisation | 4,932 | 5,219 | 19,429 |
| Multi-client amortisation | 900 | 1,815 | 7,785 |
| Impairment of long term assets | 5,825 | 0 | 152 |
| EBITDA | 3,133 | 2,629 | 49,893 |
Adjusted EBITDA means EBITDA (see above) less multi-client investment (capitalisation) and less the cost of vessel and office lease.
Backlog is defined as the total value of future revenue from signed customer contracts.
EMGS Headquarters Stiklestadveien 1 N-7041 Trondheim, Norway
Europe, Africa & Middle East Karenslyst Allè 4 , 4th Floor N-0278 Oslo, Norway
North & South America 16285 Park Ten Place, Suite 410 Houston, TX 77094, USA T +1 281 920 5601
Asia Pacific Unit E-15. 2-4, 15th Floor East Wing Rohas Perkasa No. 9 Jalan P. Ramlee 50250 Kuala Lumpur T +603 21 66 0613
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