Electromagnetic Geoservices ASA

Investor Presentation • Aug 21, 2024

Q2 2024 RESULTS

Oslo, 21st August 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.

Q2 2024

Operational summary

• Atlantic Guardian completed the fully-prefunded multi-client survey in Brazil
• Started transit towards Norway for the multi-client campaign in the North Sea and Barents Sea

Financial summary of the quarter

• Revenues of USD 13.8 million
• EBITDA of USD 7.8 million
• Adjusted EBITDA of USD 7.0 million

Subsequent events

• EMGS secured several fully prefunded multi-client acquisitions scheduled for 2024 with a total value of USD 4.8 million
• EMGS secured a fully pre-funded Ocean Bottom Node seismic survey scheduled for 2024 in the amount of USD 1.5 million. The survey will be undertaken in collaboration with Velocitas Geo Solutions

Operations and Market

Brazil Project

• Survey commenced May 1 and was completed on schedule on the 22nd of June
  • 470 Ocean-bottom-EM-nodes / receivers
  • 426 towing km
  • 456km2 area under receivers
• Project has now been fully invoiced and paid

Norway Campaign in Q3

• Atlantic Guardian arrived back in Norway late July
• As of today we completed 4 EM surveys in the Barents Sea and will start on the seismic OBN survey
• Upon completion of the seismic OBN survey in the Barents Sea the vessel will perform some equipment testing before continuing the Norway campaign with a survey in the North Sea

Wells to watch – Update

• AkerBP drilled 2 wells in license PL1170 in the Wisting area, 7324/6-2 (Ferdinand Nord) and 7324/8-4 (Hassel)
• Both wells are associated with resistive anomalies, and we predicted both to find hydrocarbons – which they did
• A third well and 7324/6-3 (Viasat) was not drilled

Well Name (Prospect Name)	Resistivity Anomaly in Jurassic (Yes/No)	Well result in Jurassic (other targets)
7324/8-1 (Wisting)	Yes	Oil discovery
7324/7-1S (Wisting Alternativ)	No	Dry (no target in Jurassic, target in Triassic dry)
7324/7-2 (Hanssen)	Yes	Oil discovery
7324/8-3 (Wisting Central III)	Yes	Oil discovery
7324/7-3S	Yes	Oil discovery
7324/8-2 (Bjaaland)	No	Shows
7325/4-1 (Gemini North)	Yes	Gas discovery
7324/6-1 (Sputnik)	No	Dry (discovery in Triassic)
7324/2-1 (Apollo)	No	Dry
7324/9-1 (Mercury)	Yes	Gas discovery
7324/6-2 (Ferdinand Nord – Drilled)	Yes	Gas discovered (as per EMGS prediction)
7324/8-4 (Hassel – Drilled)	Yes	Gas discovered (as per EMGS prediction)
7324/6-3 (Viasat - to be drilled)	Yes	EMGS predicts discovery if drilled

Please note that these are EMGS' current expectations based on limited and incomplete information. Please refer to the disclaimer at the beginning of this presentation.

Key financial metrics Quarterly development (USD million)

9

• Revenues

• USD 13.8 million total revenue
• USD 12.0 million in pre-funding
• USD 1.3 million in late sales
• Vessel utilisation of 51%
  • Completed acquisition of a fully pre-funded multi-client survey in Brazil and commenced transit towards Norway.
• EBITDA
  • USD 7.8 million
  • Adjusted EBITDA* of USD 7.0 million

Second quarter 2024 performance I Development in revenues and EBITDA

Operational costs

Quarterly operational cost base* development (USD million)

Comments

• Operational costs base in Q2 24 of USD 6.7 million
  • USD 2.7 million higher than Q1 24

10

• The Atlantic Guardian completed the fully pre-funded survey in Brazil and commenced transit back to Norway
• Employee expenses lower than in previous quarters due to vacation

*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

Decrease in free cash in Q2 2024

• Net decrease in free cash of USD 2.8 million to USD 5.9 million

  • Adjusted EBITDA of USD 7.0 million

• Trade receivables increased by USD 11.8 million as compared to the previous quarter

• Trade payables increased by USD 0.6 million

Q & A

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