Electromagnetic Geoservices ASA

EMGS reports third quarter 2018 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 6.0 million in

the third quarter 2018, down from USD 10.7 million in the third quarter 2017 and

down from USD 7.9 million in the second quarter 2018. Contract sales and other

revenues totalled USD 1.3 million, while multi-client sales amounted to USD 4.7

million in the third quarter 2018.

The Company increased the quarterly cost base, consisting of all operational

costs including multi-client investments from USD 9.1 million in the third

quarter last year to USD 11.9 million in the third quarter 2018. EMGS had two

vessels on hire this quarter compared to one vessel in the third quarter last

year. The Company recorded an EBITDA of negative USD 4.0 million, down from USD

4.9 million in the third quarter 2017. Free cash decreased with USD 5.9 million

from the previous quarter mainly due to negative cash flow from operating

activities and investing activities.

During the quarter, the Atlantic Guardian has acquired data in the Norwegian Sea

and in the North Sea, while the BOA Thalassa has been idle.

"The quarter has been slow as reflected in the numbers. However, we were very

pleased to announce the recent LOA for the work in South America and are

encouraged by a number of opportunities that continue to develop in a positive

direction," says CEO of EMGS, Christiaan Vermeijden.

Please find the full report for the third quarter 2018 and the presentation

enclosed. The results will be presented at 10:00 CET today. The presentation

will be held by CEO Christiaan Vermeijden and CFO Hege A. Veiseth and will be

broadcasted live over the Internet. The webcast can be accessed here. 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 of the Norwegian Securities Trading Act.

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