Electromagnetic Geoservices ASA

Earnings Release • Feb 6, 2020

EMGS reports fourth quarter 2019 results

EMGS reports fourth quarter 2019 results

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

market presentation for the fourth quarter of 2019 are attached.

Highlights:

* The Company recorded revenues of USD 37.2 million, up from USD 13.4 million in

the fourth quarter 2018 and up from USD 26.9 million in the third quarter 2019.

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

office lease expenses) of USD 20.9 million, up from USD 0.2 million in the

fourth quarter 2018.

* The Company increased its quarterly cost base, consisting of all operational

costs including multi-client investments and vessel and office lease expenses,

from USD 13.2 million in the fourth quarter last year to USD 16.3 million this

quarter.

* The Company continues to experience payment delays in connection with on-going

acquisition contract.

* Free cash increased with USD 16.0 million during the quarter, to USD 19.7

million.

* Backlog at the end of the quarter of approx. USD 58 million, whereof USD 14.3

million is firm.

* During the quarter, the Atlantic Guardian continued a proprietary survey for

Pemex in Mexico. This survey is still ongoing. The Petrel Explorer completed

work on the USD 24 million proprietary acquisition in South East Asia in the

fourth quarter.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"We are today presenting both very strong full year results and a record

quarter. This reflects good utilisation in 2019, with two major long-term

contracts, and continued cost discipline."

The results will be presented at 10:00 (local time Norway) today. The

presentation will be held by CEO Bjørn Petter Lindhom and Interim CFO Anders

Eimstad and will be broadcasted live over the Internet. The webcast can be

accessed on www.emgs.com (http://www.emgs.com/investors/). It will be possible

to post questions through the webcast.

Contact

Anders Eimstad, Interim CFO, +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.

EMGS operates on a worldwide basis with offices in Trondheim, Oslo, Houston,

Mexico City, Rio de Janeiro and Kuala Lumpur.