Electromagnetic Geoservices ASA

Earnings Release • Aug 18, 2021

EMGS reports second quarter 2021 results

EMGS reports second quarter 2021 results

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

market presentation for the second quarter of 2021 are attached.

Highlights:

* The Company recorded revenues of USD 9.4 million, up from USD 7.5 million in

the second quarter of 2020 and up from USD 1.6 million in the first quarter of

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

office lease expenses) of USD 4.6 million, up from negative USD 2.0 million in

the second quarter of 2020.

* Free cash increased with USD 1.1 million during the quarter, to USD 13.2

million.

* Subsequent to the end of the second quarter 2021, EMGS completed the

proprietary survey in Southeast Asia and has started transit back to Norway for

a fully prefunded multi-client survey.

* In July 2021, EMGS completed a partial voluntary bond buy-back with a total

nominal value of USD 4.0 million, resulting in annualised interest expense

savings of approximately USD 200 thousand.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"We are very pleased with having delivered a strong second quarter. We are

beginning to see the benefits of our shift to a more flexible business and

operational model. I am very grateful to our onshore and offshore personnel for

continuing to deliver above and beyond.

We will continue to invest in financially attractive multi-client programs,

while also realising the value of our existing multi-client library though

additional late sales. I am therefore particularly pleased to note the USD 3.6

million in late sales announced after the close of the second quarter."

A pre-recorded presentation will be available over the internet from 20:00

(local time Norway) today. To access the presentation, please go to the

Company's homepage (www.emgs.com (http://www.emgs.com)) and follow the link.

Contact

Anders Eimstad, Chief Financial Officer, +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. CSEM technology can also be used to detect the

presence of marine mineral deposits (primarily Seabed Massive Sulphides) and

EMGS believes that the technology can also be used to estimate the mineral

content of such deposits. The Company is undertaking early-stage initiatives to

position itself in this future market.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.