EMGS reports third quarter 2017 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 10.0 million in the third quarter 2017, up from USD 4.5 million in the third quarter 2016 and down from USD 10.6 million in the second quarter 2017. Contract and other sales totalled USD 0.7 million, while multi-client sales amounted to USD 9.3 million. The Company has reduced its quarterly cost base, consisting of all operational costs including multi-client investments, from USD 14.2 million in the third quarter last year to USD 9.2 million this quarter. The Company recorded EBITDA of USD 2.9 million, up from negative USD 6.2 million in the third quarter 2016. Free cash increased with USD 10.9 million from the previous quarter.

During the quarter, the Atlantic Guardian completed the first commercial survey with the Deep Blue (JIP) source and acquired data on prefunded multi-client surveys in the Norwegian Sea and in the Barents Sea, while the BOA Thalassa has been off-hire.

"We are pleased to see another quarter with a positive EBITDA as a result of a relatively healthy amount of revenues and low operational costs. The commercialisation of the DeepBlue (JIP) was a major milestone in the Company as this will be giving our customers the ability to use CSEM to image smaller prospects and prospects at greater depth below mudline.", says CEO of EMGS, Christiaan Vermeijden.

Please find the full report for the third quarter 2017 enclosed. The results will be presented at 10:00 CET today at Felix Konferansesenter, Bryggetorget 3, Aker Brygge in Oslo. The presentation will be published at 09:30 CET.

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, Villahermosa, 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.