Electromagnetic Geoservices ASA

Earnings Release • Jul 25, 2019

EMGS reports second quarter 2019 results

EMGS reports second quarter 2019 results

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

market presentation for the second quarter of 2019 are attached.

Highlights:

* The Company recorded revenues of USD 14.5 million, up from USD 7.9 million in

the second quarter 2018 and up from USD 10.8 million in the first quarter 2019.

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

office lease expenses) of USD 2.1 million, up from negative USD 3.0 million in

the second 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 10.9 million in the second quarter last year to USD 12.4 million this

quarter.

* Free cash decreased with USD 3.9 million during the quarter, to USD 5.8

million.

* During the quarter, the Atlantic Guardian acquired data on three multi-client

projects in Norway of which two were fully prefunded and started the transit to

Mexico. The BOA Thalassa worked on the USD 24 million proprietary acquisition

contract for Petronas in South-East Asia in the second quarter.

* Backlog at the end of the quarter of approx. USD 97 million.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"The arrival of Atlantic Guardian in Mexico and the start of acquisition for

Pemex is an important milestone for EMGS. We now have both our vessels working

on long term contracts securing a healthy cashflow for the Company.

The award from BP for a survey in Mauritania and Senegal, marks our return to

Africa, and shows that our efforts and focus on getting the majors to use our

technology in the Atlantic Margin is starting to pay off."

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

presentation will be held by CEO Bjørn Petter Lindhom and CFO Hege A. Veiseth

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

Hege Veiseth, CFO, +47 99 21 67 43

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.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act