Electromagnetic Geoservices ASA

Earnings Release • Feb 10, 2025

Q4 2024 RESULTS

Oslo, 10th February 2024

Bjørn Petter Lindhom, CEO Anders Eimstad, CFO

Disclaimer

This quarterly presentation 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 (EMGS) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such 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 the 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.

Q4 2024

Operational summary

• Successfully completed acquisition of multi-client campaign in Norway
• Started transit towards India

Financial summary of the quarter

• Revenues of USD 9.7 million
• EBITDA of USD 10.0 million
• Adjusted EBITDA USD 7.9 million
• Available cash of USD 9.1 million as of 31 December 2024
• Secured USD 10 million contract in India

Subsequent events

• In January 2025, EMGS announced that the Company had received a letter of award for a CSEM survey in India with a value approximately USD 10 million, subject to receiving a callout order

Operations and Market

Summary of 4th Quarter 2024

• Completed the Norwegian Continental Shelf campaign
• Revenues from several surveys acquired in the 3rd and 4 th quarter recognized
  • Barents Sea CSEM surveys (PL1076, PL1239,PL1242,PL1243)
  • Barents Sea OBN survey
  • North Sea CSEM survey (PL1218)
• Contract award in India and start of transit to India around the Cape of Good Hope

2024 summary

• Annual revenue of USD 24.7 million (unaudited)
• Adjusted EBITDA for the year of USD 5.2 million
• Net income of USD 2.8 million
• Available cash at end of Q4 2024 was USD 9.1 million
• Convertible bond loan remains at approximately USD 19.5 million
• Equity at yearend was USD 3.4 million
• Convertible bond matures in May 2025

India

• The EIA is predicting the worlds oil consumption to increase by 1.2 million barrels per day in 2025, of which India would be responsible for about 25%.
• In 2050 India is expected to consume 13.3 million barrels of oil per day, up from current consumption of 5.4 million barrels per day (OPEC's World Oil Outlook)
• India is reforming its E&P sector and intends to invest USD 100 billion by 2030 according to Petroleum Minister Hardeep S Puri
• The government of India is increasing its available exploration acreage by opening new sedimentary basins previously designated as 'No-Go' zones and arranging new OLAP (Open Acreage Licensing Policy) rounds
• The goal is to have 1 million km2 open for exploration by 2030
• The acquisition of geophysical subsurface data is an important part of India's strategy

EMGS in India

• EMGS has a long history in India with large acquisition campaign in 2006, 2007 and 2016
• In 2024 we reprocessed most of the legacy 2D and some of the legacy 3D CSEM data and made it available to the industry
• In October 2024 EMGS signed contract worth approx. USD 10 million with an Indian independent company for the acquisition of CSEM data offshore the east coast
• In January EMGS received a Letter of Award worth approx. USD 10 million from another Indian Independent
• The expected duration of these two projects is approx. 3 months
• We expect that India will be an important market for EMGS in years to come

Fourth quarter 2024 performance I Development in revenues and EBITDA

• Revenues • USD 9.7 million total revenue • USD 9.2 million in pre-funding • USD 0.5 million in contract and other revenue • Vessel utilization of 31% • The Atlantic Guardian completed multi-client acquisition in Norway and commenced transit towards India • EBITDA 0 5 10 15 10 Key financial metrics Quarterly development (USD million)

• USD 10.0 million
• Adjusted EBITDA* of USD 7.9 million

-10 -5 0 5 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 1 Adjusted EBITDA -5.9 7.9 7.0 -3.8 -1.7

Operational costs

Quarterly operational cost base* development (USD million)

Comments

• Operational costs base in Q4 24 of USD 4.7 million

• USD 2.3 million lower than Q3 24

11

• The Atlantic Guardian commenced transit to India in the fourth quarter. USD 1.5 million in transit costs were capitalised in the fourth quarter. If the capitalized cost is added back to the operational cost base, the adjusted operational cost base in the fourth quarter would be USD 6.2 million.
• USD 1.5 million in multi-client expenses were capitalised in the quarter.

*Cost base is defined as operational costs (charter hire etc, employee expenses, other operating expenses) plus MC investments and vessel and office lease payments presented as financial leases from 1 January 2019, restructuring charges and other extraordinary items

** Tax provision from 2012-2013 in the amount of USD 2.9 million was reversed in the fourth quarter. USD 2.9 million was added back to charter hire, fuel and crew expenses

• Other operational expenses
• Employee expenses

Decrease in free cash in Q4 2024

Quarterly free cash development (USD million) Comments

• Net decrease in free cash of USD 4.1 million to USD 9.1 million
  • Adjusted EBITDA of USD 10.0 million
  • Change in other working capital includes a reduction of other short term liabilities in the amount of USD 7.7 million related to deferred revenue reduction as a result of recognizing multi-client prefunding revenue upon final delivery of data
  • USD 1.9 million related to the multi-client library was capitalized in the quarter
  • Trade receivables decreased by USD 0.6 million as compared to the previous quarter
  • Trade payables increased by USD 0.8 million

Q & A

Please e-mail questions to: emgs@emgs.com