Earnings Release • Feb 2, 2022
Earnings Release
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Fourth Quarter 2021. 1
1
| Q4 2021 | Q4 2020 | YTD 2021 | 2020 | Q3 2021 | |
|---|---|---|---|---|---|
| Amounts in USD million (except per share data) | Unaudited | Unaudited | Unaudited | Audited | Unaudited |
| Contract sales | 0.0 | 0.4 | 7.6 | 11.5 | 7.4 |
| Multi-client sales | 3.8 | 2.3 | 15.9 | 7.8 | 4.0 |
| Other revenue | 1.3 | 1.4 | 5.3 | 5.6 | 1.3 |
| Total revenues | 5.1 | 4.0 | 28.9 | 24.9 | 12.7 |
| Operating profit/ (loss) | 0.8 | -1.4 | 9.2 | -17.7 | 7.3 |
| Income/ (loss) before income taxes | 0.9 | -2.4 | 5.3 | -22.7 | 5.3 |
| Net income/ (loss) | 1.2 | -3.0 | 4.9 | -23.4 | 4.7 |
| Earnings/ (loss) per share | 0.01 | -0.02 | 0.04 | -0.18 | 0.04 |
| Average number of shares outstanding (in thousands) | 130,970 | 130,970 | 130,970 | 130,970 | 130,970 |
| EBITDA | 2.7 | 1.6 | 19.4 | 6.1 | 9.7 |
| Multi-client investments | 0.8 | 0.0 | 1.4 | 0.6 | 0.1 |
| Vessel and office lease | 1.5 | 0.9 | 6.9 | 8.8 | 2.1 |
| Adjusted EBITDA | 0.4 | 0.7 | 11.0 | -3.3 | 7.6 |
EBITDA = Operating profit /(loss) + Depreciation and ordinary amortisation + Multi-client amortisation + Impairment of long-term assets Adjusted EBITDA = EBITDA (see above) less multi-client investment (capitalisation) and less the cost of vessel and office lease.
EMGS recorded revenues of USD 5.1 million in the fourth quarter of 2021, up 27% from USD 4.0 million reported for the corresponding quarter of 2020. Contract sales and other revenue totalled USD 1.3million, of which USD 1.3million is related to revenue recognition of DeepBlue partner contribution with no cash effect, while multi-client sales amounted to USD 3.8 million up 65% from the fourth quarter 2020. EMGS has elected to delay recognition of USD 0.8 million in uplift revenue as a consequence of a dispute with a customer, for which EMGS cannot reliably estimate the outcome. For the fourth quarter of 2020, contract sales and other revenue totalled USD 1.7 million, while multi-client sales amounted to USD 2.3 million.
Revenues for the full year 2021 amounted to USD 28.9 million, up 16% compared with USD 24.9 million for the full year 2020.
Charter hire, fuel and crew expenses totalled USD 0.9 million in the fourth quarter of 2021, down 34% compared to USD 1.3 million in the fourth quarter of 2020. The Company capitalised USD 0.8 million of the charter hire, fuel and crew expenses as multi-client expenses in the fourth quarter of 2021, while no charter hire, fuel and crew expenses were capitalised in the fourth quarter of 2020. The charter hire, fuel and crew expenses have increased from USD 2.0 million in the fourth quarter of 2020 to USD 3.0 million in same period this year when adding back the vessel lease expenses and the capitalised multi-client expenses. This is a result of increased activity level in the fourth quarter of 2021 compared to 2020 where the Atlantic Guardian was warm-stacked for the entire fourth quarter.
For the full year 2021, the Company has recorded charter hire, fuel and crew expenses of USD 3.5 million, down 41% from USD 5.9million in 2020. The reduction in expenses reflects, despite increased vessel activity, the Company's continued focus on optimizing our variable expenses.
Employee expenses amounted to USD 0.8 million in the fourth quarter of 2021, up from USD 0.3 million in the same quarter in 2020. Employee expenses for the full year were USD 3.0 million in 2021, compared with USD 9.8 million in 2020. This 69% decrease is primarily the result of a more flexible business model.
Other operating expenses totalled USD 0.8 million in the fourth quarter this year. For the full year 2021, other operating expenses amounted to USD 3.0 million, slightly down from USD 3.1 million in 2020.
Depreciation and ordinary amortisation totalled USD 1.0 million in the fourth quarter of 2021, down from USD 1.2 million in the fourth quarter of 2020. Depreciation of right-of-use assets, vessel leases and office leases totalled USD 0.7 million in the fourth quarter of 2021 compared to USD 1.2 million in fourth quarter of 2020.
Depreciation and ordinary amortisation decreased from USD 4.5 million for the full year 2020 to USD 4.2 million in 2021. Depreciation right-of-use assets, vessel leases and office leases for the full year 2021 were USD 3.5 million compared to USD 7.9 million for the full year 2020, due largely to the reduction in the number of vessels from two to one. The Company capitalised USD 1.2 million of the depreciation of the right-of-use asset as multi-client expenses in 2021, compared with USD 0.5 million in 2020.
Multi-client amortisation amounted to USD 0.2 million the fourth quarter, compared with USD 0.5 million in the fourth quarter of 2020. The Company uses straight-line amortisation for its completed multi-client projects, assigned over the useful lifetime of four (4) years.
Multi-client amortisation totalled USD 2.5 million for the full year 2021, down from USD 4.1 million in 2020.
Net financial items ended at positiveUSD 0.1million in the fourth quarter of 2021, compared with a negative USD 1.0million in the corresponding quarter of 2020. This is largely the result of a USD 1.0 million gain that was recognised in the fourth quarter as a consequence of a bond repurchase with an aggregate nominal value of USD 4.0 million at 75 per cent of par. An equivalent bond repurchase was made in the third quarter of 2021. In the fourth quarter of 2021, the Group recorded an interest expense of USD 0.8 million compared with an interest expense of USD 1.0 million in the fourth quarter of 2020. In the fourth quarter of 2021, the Company recorded a net currency loss of USD 46 thousand, compared with a currency loss of USD 129 thousand in the fourth quarter of 2020.
Interest income amounted to USD 5 thousand in the fourth quarter compared to USD 130 thousand in the corresponding quarter in 2020.
For the full year 2021, net financial items were negative USD 3.9 million, compared to negative USD 5.0 million in 2020.
Profit before income taxes amounted to USD 0.9 million in the fourth quarter 2021, compared with loss before income taxes of USD 2.4 million in the corresponding quarter in 2020.
Profit before income taxes for the full year 2021 amounted to USD 5.3 million, compared with loss before income taxes of USD 22.7 million in 2020.
Income tax expenses of negative USD 0.3 million were recorded in the fourth quarter of 2021, compared with an income tax expense of USD 0.7 million in the fourth quarter of 2020. The negative income tax in the fourth quarter of 2021 is the result of an adjustment to income tax accrued in the third quarter of 2021.
Income tax expenses for the full year 2021 were USD 0.4 million, compared with USD 0.7 million in the same period in 2020.
Profit for the fourth quarter of 2021 amounted to USD 1.2 million, up from a loss of USD 3.0 million in the fourth quarter of 2020.
Profit for the full year 2021 was USD 4.9 million, up from a loss of USD 23.4 million in 2020. This significant turnaround in profitability is the result of the new flexible business model and successful execution of acquisition projects.
In the fourth quarter 2021, net cash flow from operating activities was USD 1.3 million, down slightly from net cash flow of USD 1.6 million in the fourth quarter of 2020.
For the full year 2021, net cash flow from operating activities was USD 23.6 million, compared with negative USD 1.9 million in 2020. This is in large part the result of the significant improvement in EBITDA for 2021 as compared to 2020.
EMGS applied USD 1.4 million in investing activities in the fourth quarter of 2021, compared with USD 0.1 million in the fourth quarter of 2020. EMGS invested in two separate multi-client surveys in the North Sea in the fourth quarter of 2021. Both surveys were in the Utsira High area.
Cash flow from investing activities for the full year 2021 amounted to a negative USD 2.7 million, compared with a negative USD 1.8 million in 2020. The Company invested USD 0.1 million in equipment and USD 2.7 million in the multi-client library in 2021.
The carrying value of the multi-client library was USD 2.4 million at 31 December 2021, up from USD 1.3 million at 30 September 2021 and USD 2.2 million at 31 December 2020.
Cash flow from financial activities was negative USD 4.8 million in the fourth quarter of 2021, compared with a negative cash flow of USD 1.6 million in the fourth quarter of 2020. The increased finance cost in the fourth quarter of 2021 is the
result of the USD 3.0 million used in the bond buy-back.
Cash flow from financial activities for the full year 2021 amounted to negative USD 15.2 million, compared with a negative USD 11.9 million in the same period of 2020. The increased finance cost in the for the full year 2021 is a result of USD 6.0 million used in the two separate bond repurchases.
The Company had a net decrease in cash, excluding restricted cash, of USD 4.8 million during the fourth quarter of 2021. At 31 December 2021, cash and cash equivalents totalled USD 9.9 million.
Total borrowings were USD 24.3 million at 31 December 2021, down 24% from USD 31.8 million at 31 December 2020 and down 14% from USD 28.1 million at 30 September 2021. This includes the Company's bond loan, which had a carrying value of USD 32.0 million recorded as non-current borrowings and USD 1.9 million recorded as equity in accordance with IFRS.
In December of 2021, the Company repurchased a portion of the Company's outstanding USD 28.5 million convertible bond. Bonds with an aggregate nominal value of USD 4.0 million were repurchased at 75 per cent of par value. This was the second bond repurchase, the first occurring in July 2021 also at 75% of par value, with a combined nominal value of USD 8.0 million for the full year.
The convertible bond loan contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million. In addition, the convertible bond agreement has restrictions regarding the Company´s ability to sell or otherwise dispose of the multi-client library, declare or make dividend payments, incur additional indebtedness, change its business or enter into speculative financial derivative agreements. As of 31 December 2021, the free cash and cash equivalents totalled USD 9.9 million.
| Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | |
|---|---|---|---|---|---|
| Proprietary work | 0 % | 42% | 0 % | 0 % | 0 % |
| Multi-client projects | 44% | 6 % | 31% | 6 % | 0 % |
| Total utilisation | 44% | 48% | 31% | 6 % | 0 % |
Vessel utilisation for the fourth quarter 2021 was 44% compared with 0% in the corresponding quarter in 2020. For the full year 2021, vessel utilisation was 32% compared with 12% for 2020.
In the fourth quarter of 2021, the Company's vessel was allocated 44% to multi-client projects and no time was spent on proprietary work. In the comparable quarter of 2020, no time was spent on multi-client projects or proprietary work.
EMGS had one vessel on charter and recorded 3.0 vessel months in the quarter. In the fourth quarter 2020, the Company also had one vessel on charter and recorded 3.0 vessel months.
| Utilisation Q4 2021 | Status Q4 2021 | Firm charter period | Remaining option periods | |
|---|---|---|---|---|
| Atlantic Guardian | 44% | In operation | 20 October 2022 | 4 x 12 months |
The Atlantic Guardian successfully completed a fully funded multi-client survey in the North Sea and entered warm-stack for the second half of the fourth quarter.
As of 31 December 2021, EMGS' backlog was USD 0.1 million, compared with a backlog of USD 8.6 million at the end of the fourth quarter 2020. The Company is encouraged by the level of interest in new acquisition projects both in Norway and internationally and is working to secure backlog.
On the 18th of January 2022, the result of Norway's 2021 APA license round was announced. Of the 53 production licenses offered, five production licenses included an EM commitment. These EM commitments are an important driver in securing additional backlog.
On the 27th of January EMGS announced a resolution to propose an extension of the maturity date for the USD 24.5 million convertible bond by 24 months and increase the interest margin by 100 bps. A sufficient majority of the bondholders have indicated they intend to vote in favour of the proposal.
EMGS was listed at the Oslo Stock Exchange in March 2007. During the fourth quarter 2021, the EMGS share was traded between NOK 1.19 and NOK 1.54 per share. The last closing price before 31 December 2021 was NOK 1.19.
As of 31 December 2021, the Company had a total of 130,969,690 shares outstanding.
The most important risk factor for EMGS is the demand for EM services. Historically, demand for EM services has been correlated to the oil price, which can be volatile, unpredictable and is subject to upward and downward pressure from economic, environmental, political, and other factors. The Company expects that this correlation will remain going forward. As EM surveys are still considered a niche product to many E&P companies, demand can quickly change as a response to declining oil price.
The Company's convertible bond loan due in 2023 contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million. As of 31 December 2021, the free cash and cash equivalents totalled USD 9.9 million.
In 2021, the Company'sfocus has been on increasing backlog and project execution. The first project in Mexico, subsequent to mobilising the vessel from warm-stack, was successfully completed ahead of schedule prior to the end of April 2021. The second major survey in 2021, located in Southeast Asia, has also been successfully completed prior to the end of the third quarter. The final survey of 2021, a fully prefunded multi-client survey in the North Sea, was completed in November. Upon completion, the vessel was placed in warm-stack until additional backlog is secured.
Securing additional backlog in 2022 represents the most significant uncertainty factor going into 2022.
Reference is made to the 2020 Annual Report for a further description of other relevant and important risk factors.
The implementation of the new more flexible business model implemented in late 2020, combined with safe and efficient execution of acquisition projects contributed to 2021 being profitable. At the start of 2022, the Company has more free cash and a materially lower outstanding balance on the convertible bond loan as compared to the start of 2021.
We prepared for any increase in demand for CSEM services as a result of higher oil prices and increased investment in exploration.
The Atlantic Guardian will start 2022 in warm-stack and remain so until sufficient acquisition projects are secured to warrant mobilisation of the vessel. EMGS plans to mobilise the Atlantic Guardian for a multi-client campaign in early Q2 on the Norwegian Continental Shelf. The Company is encouraged by the interest for EM services and is working to secure prefunding for the campaign.
Multi-client late sales have been and will continue to be an important part of EMGS' revenue stream, generating cash in addition to acquisition contracts. Late sales in 2021 increased by 27% from an all-time low in 2020, and EMGS will work toward securing additional late sales in 2022.
During 2021, the Company made two accretive bond buy-backs. Capital discipline remains a top priority for the Company, and it is our aim that the equity of the Company will continue to gradually improve.
In the longer term, the Company believes that its unique EM technology could also play an importantrole in the exploration for marine minerals as well as development of the offshore wind market in Norway and internationally. The Company has initiated early-stage discussions with customers and stakeholders aimed at generating proof of concept surveys.
The Company maintains its cutting-edge technological position in the EM market and is well-positioned to be able to capitalise on any upturn in the market with a more streamlined and efficient organisation.
Oslo, 02 February 2022
Board of Directors and CEO
| Q4 2021 | Q4 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Amounts in USD 1 000 | Unaudited | Unaudited | Unaudited | Audited |
| Operating revenues | ||||
| Contract sales | 41 | 359 | 7,634 | 11,503 |
| Multi-client pre-funding | 2,951 | 0 | 10,151 | 3,229 |
| Multi-client late sales | 825 | 2,286 | 5,785 | 4,542 |
| Other revenue | 1,294 | 1,380 | 5,304 | 5,642 |
| Total revenues | 5,112 | 4,024 | 28,874 | 24,916 |
| Operating expenses | ||||
| Charter hire, fuel and crew expenses | 894 | 1,349 | 3,502 | 5,924 |
| Employee expenses | 757 | 337 | 3,012 | 9,818 |
| Depreciation and ordinary amortisation | 981 | 1,197 | 4,207 | 4,462 |
| Depreciation right-of-use assets | 714 | 1,236 | 3,524 | 7,856 |
| Multi-client amortisation | 224 | 513 | 2,457 | 4,077 |
| Impairment of long-term assets | 0 | 46 | 0 | 7,439 |
| Other operating expenses | 775 | 713 | 2,964 | 3,067 |
| Total operating expenses | 4,345 | 5,390 | 19,665 | 42,644 |
| Operating profit/ (loss) | 767 | -1,366 | 9,209 | -17,728 |
| Financial income and expenses | ||||
| Interest income | 5 | 130 | 28 | 208 |
| Interest expense | -675 | -748 | -2,925 | -4,105 |
| Interest expense lease liabilities | -147 | -258 | -762 | -1,111 |
| Impairment financial assets | 0 | 0 | -1,920 | 0 |
| Net gains/(losses) of financial assets and liabilities | 1,000 | -3 | 2,000 | -3 |
| Net foreign currency income/(loss) | -46 | -129 | -290 | 25 |
| Net financial items | 138 | -1,008 | -3,869 | -4,987 |
| Income/ (loss) before income taxes | 905 | -2,374 | 5,339 | -22,715 |
| Income tax expense | -316 | 661 | 417 | 671 |
| Income/ (loss) for the period | 1,221 | -3,035 | 4,922 | -23,385 |
| Amounts in USD 1 000 | Q4 2021 Unaudited |
Q4 2020 Unaudited |
2021 Unaudited |
2020 Audited |
|---|---|---|---|---|
| Income/ (loss) for the period | 1,221 | -3,035 | 4,922 | -23,385 |
| Oher comprehensive income | ||||
| Other comprehensive income to be reclassified to profit or loss | ||||
| in subsequent periods: | ||||
| Exchange differences on translation of foreign operations | -2 | 0 | -25 | -13 |
| Oher comprehensive income | -2 | 0 | -25 | -13 |
| Actuarial gains/(losses) on defined benefit plans | 0 | 0 | 0 | 0 |
| Other comprehensive income | -2 | 0 | -25 | -13 |
| Total other comprehensive income/(loss) for the period | 1,219 | -3,035 | 4,897 | -23,398 |
| 31 December 2021 | 31 December 2020 | |
|---|---|---|
| Amounts in USD 1 000 | Unaudited | Audited |
| ASSETS | ||
| Non-current assets | ||
| Multi-client library | 2,412 | 2,209 |
| Other intangible assets | 422 | 939 |
| Property, plant and equipment | 12,747 | 16,374 |
| Right-of-use assets | 4,465 | 8,246 |
| Financial lease receivables | 7 2 | 141 |
| Assets under construction | 3 | 3 |
| Total non-current assets | 20,121 | 27,911 |
| Current assets | ||
| Spare parts, fuel, anchors and batteries | 3,813 | 4,726 |
| Trade receivables | 1,267 | 6,246 |
| Other receivables | 3,759 | 3,142 |
| Financial lease receivables | 6 8 | 6 8 |
| Cash and cash equivalents | 9,855 | 4,179 |
| Restricted cash | 1,278 | 7,995 |
| Total current assets | 20,041 | 26,357 |
| Total assets | 40,162 | 54,269 |
| EQUITY | ||
| Capital and reserves attributable to equity holders | ||
| Share capital, share premium and other paid-in equity | 71,490 | 71,490 |
| Other reserves | -1,570 | -1,544 |
| Retained earnings | -72,433 | -77,361 |
| Total equity | -2,514 | -7,417 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Provisions | 4,812 | 9,625 |
| Borrowings | 24,295 | 31,816 |
| Non-current leasing liabilities | 387 | 6,501 |
| Total non-current liabilities | 29,494 | 47,942 |
| Current liabilities | ||
| Trade payables | 1,981 | 1,461 |
| Current tax liabilities | 3,376 | 4,035 |
| Other short term liabilities | 1,451 | 2,774 |
| Current leasing liabilities | 6,374 | 5,474 |
| Total current liabilities | 13,183 | 13,744 |
| Total liabilities | 42,677 | 61,686 |
| Total equity and liabilities | 40,162 | 54,269 |
| Amounts in USD 1 000 | Q4 2021 Unaudited |
Q4 2020 Unaudited |
2021 Unaudited |
2020 Audited |
|---|---|---|---|---|
| Net cash flow from operating activities | ||||
| Income/(loss) before income taxes | 905 | -2,374 | 5,339 | -22,715 |
| Adjustments for: | ||||
| Withholding tax expenses | 292 | 0 | 459 | 0 |
| Total taxes paid | -301 | -31 | -1,536 | -453 |
| Depreciation and ordinary amortisation | 981 | 1,197 | 4,207 | 4,462 |
| Depreciation right-of-use assets | 1,208 | 1,236 | 4,751 | 8,362 |
| Multi-client amortisation | 224 | 513 | 2,457 | 4,077 |
| Impairment of other long term assets | 0 | 46 | 0 | 7,439 |
| Cost of share-based payment | 2 | 2 | 6 | 10 |
| Change in trade receivables | -270 | 64 | 4,979 | 17,257 |
| Change in inventories | 812 | 1,683 | 913 | 3,536 |
| Change in trade payables | 472 | 446 | 520 | -6,793 |
| Change in other working capital | -2,759 | -2,054 | 55 | -21,611 |
| Finance Income | -1,005 | -135 | -2,028 | -208 |
| Finance Cost | 780 | 999 | 3,498 | 4,787 |
| Net cash flow from operating activities | 1,340 | 1,593 | 23,621 | -1,850 |
| Investing activities: | ||||
| Purchase of property, plant and equipment | -46 | -80 | -90 | -620 |
| Investment in multi-client library | -1,319 | 0 | -2,659 | -1,134 |
| Cash used in investing activities | -1,366 | -80 | -2,749 | -1,754 |
| Financial activities: | ||||
| Financial lease liabilities | -1,161 | -855 | -6,206 | -8,043 |
| Interest lease liabilities | -147 | -258 | -762 | -1,111 |
| Repayment of loan | -3,000 | 0 | -6,000 | 0 |
| Interest paid | -501 | -649 | -2,257 | -3,001 |
| Interest received | 5 | 135 | 28 | 208 |
| Cash used in/provided by financial activities | -4,804 | -1,626 | -15,197 | -11,947 |
| Net change in cash | -4,829 | -113 | 5,676 | -15,552 |
| Cash balance beginning of period | 14,685 | 4,292 | 4,179 | 19,731 |
| Cash balance end of period | 9,855 | 4,179 | 9,855 | 4,179 |
| Net change in cash | -4,830 | -113 | 5,676 | -15,552 |
| Share capital | ||||
|---|---|---|---|---|
| share premium | Foreign currency | |||
| and other paid-in | translation | |||
| Amounts in USD 1 000 | capital | reserves | Retained earnings | Total equity |
| Income/(loss) for the period | 0 | 0 | -3,035 | -3,035 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | -3,035 | -3,035 |
| Cost of share-based payments | 0 | 0 | 2 | 2 |
| Balance as of 31 December 2020 (Audited) | 71,490 | -1,544 | -77,361 | -7,417 |
| Income/(loss) for the period | 0 | 0 | -3,602 | -3,602 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | -3,602 | -3,602 |
| Cost of share-based payments | 0 | 0 | 1 | 1 |
| Balance as of 31 March 2021 (Unaudited) | 71,490 | -1,544 | -80,962 | -11,018 |
| Income/(loss) for the period | 0 | 0 | 2,640 | 2,640 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 2,640 | 2,640 |
| Cost of share-based payments | 0 | 0 | 2 | 2 |
| Balance as of 30 June 2021 (Unaudited) | 71,490 | -1,544 | -78,320 | -8,376 |
| Income/(loss) for the period | 0 | 0 | 4,663 | 4,663 |
| Other comprehensive income | 0 | -23 | 0 | -23 |
| Total comprehensive income | 0 | -23 | 4,663 | 4,640 |
| Cost of share-based payments | 0 | 0 | 2 | 2 |
| Balance as of 30 September 2021 (Unaudited) | 71,490 | -1,567 | -73,656 | -3,735 |
| Income/(loss) for the period | 0 | 0 | 1,221 | 1,221 |
| Other comprehensive income | 0 | -2 | 0 | -2 |
| Total comprehensive income | 0 | -2 | 1,221 | 1,219 |
| Cost of share-based payments | 0 | 0 | 2 | 2 |
| Balance as of 31 December 2021 (Unaudited) | 71,490 | -1,570 | -72,433 | -2,514 |
These interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as of 31 December 2020, which is available on www.emgs.com.
EMGS reports its sales revenue as one reportable segment. The sales revenues and related costs are incurred worldwide. The amounts below show sales revenues reported by geographic region.
| Amounts in USD million | Q4 2021 Unaudited |
Q4 2020 Unaudited |
YTD 2021 Unaudited |
2020 Audited |
|---|---|---|---|---|
| Americas | 0.3 | 0.0 | 10.2 | 8.3 |
| Asia/Pacific | 0.0 | 0.0 | 7.4 | 0.1 |
| EAME | 4.8 | 4.0 | 11.4 | 16.5 |
| Total | 5.1 | 4.0 | 28.9 | 24.9 |
The multi-client library consists of electromagnetic data acquired through multi-client surveys, i.e., EMGS owns the data. The electromagnetic data can be licensed to customers on a non-exclusive basis. Directly attributable costs associated with multi-client projects such as acquisition costs, processing costs, and other direct project costs are capitalised.
| Amounts in USD million | Q4 2021 Unaudited |
Q4 2020 Unaudited |
YTD 2021 Unaudited |
2020 Audited |
|---|---|---|---|---|
| Opening carrying value | 1.3 | 2.7 | 2.2 | 6.0 |
| Additions | 1.3 | 0.0 | 2.7 | 1.1 |
| Amortisation charge | -0.2 | -0.7 | -2.5 | -4.1 |
| Impairment | 0.0 | 0.0 | 0.0 | -0.8 |
| Closing carrying value | 2.4 | 2.2 | 2.4 | 2.2 |
This quarterly report 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 differmaterially. 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 and potential clients for EMGS ASA 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 could be major markets for 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 relevant from time to time.
Although EMGS 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. Neither EMGS 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 EMGS 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.
EMGS ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the report.
For further information, please visit www.emgs.com, or contact:
Anders Eimstad CFO Email: [email protected] Phone: +47 948 25 836
EMGS' financial information is prepared in accordance with IFRS. In addition, EMGS provides alternative performance measures to enhance the understanding of EMGS' performance. The alternative performance measures presented by EMGS may be determined or calculated differently by other companies.
EBITDA means Earnings before interest, taxes, amortisation, depreciation and impairments. EMGS uses EBITDA because it is useful when evaluating operating profitability as it excludes amortisation, depreciation and impairments related to investments that occurred in the past and are not cash-flow items. Also, the measure is useful when comparing the Company's performance to other companies.
| Q4 2021 | Q4 2020 | YTD 2021 | 2020 | |
|---|---|---|---|---|
| Amounts in USD 1 000 | Unaudited | Unaudited | Unaudited | Audited |
| Operating profit / (loss) | 767 | -1,366 | 9,209 | -17,728 |
| Depreciation and ord. amortisation | 1,695 | 2,433 | 7,731 | 12,318 |
| Multi-client amortisation | 224 | 513 | 2,457 | 4,077 |
| Impairment of long term assets | 0 | 4 6 | 0 | 7,439 |
| EBITDA | 2,686 | 1,625 | 19,396 | 6,107 |
Adjusted EBITDA means EBITDA (see above) less multi-client investment (capitalisation) and less the cost of vessel and office leases.
EMGS uses Adjusted EBITDA because the Company believes this provides users of the financial reporting with a clearer picture when evaluating the operating profitability regardless if the Company is working on a multi-client or a proprietary survey. The Adjusted EBITDA measure includes the gross cash costs of the Company. The Adjusted EBITDA adds back cash items as capitalised multi-client expenses and vessel and office lease expensesto the costs included in the adjusted EBITDA.
Backlog is defined as the total nominal value of future revenue from signed customer contracts. EMGS believes that the backlog figure is a useful measure in that it provides an indication of the amount of committed activity in the coming periods.
EMGS Headquarters Karenslyst Allè 4 , 4th Floor N-0278 Oslo, Norway
emgs.com [email protected]
16 Fourth Quarter 2021.
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