Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity and utilisation 4-5 working days after the close of each quarter. The Company defines "vessel utilisation" as the percentage of the vessel charter period spent on contracted or multi-client data acquisition.
Vessel utilisation for the second quarter 2015 came in at 68% compared with 75% for the corresponding quarter in 2014. For the first six months this year, the vessel utilisation came in at 72% compared with 71% for the same period last year.
In the second quarter of 2015, the Company's vessels were allocated 5% to contract and 63% to multi-client programmes. In the second quarter of 2014, the allocation was 38% and 37% respectively.
EMGS recorded 10.5 vessel months this quarter, compared with 12 vessel months in the second quarter of 2014.
Vessel activity
The BOA Thalassa has been in Asia for the full second quarter positioned for expected contract work in the region. The vessel completed the first phase of a 3D EM multi-client project in Indonesia on 14 April and started on the second phase of the project on 15 April. This phase was completed on 26 May, after which the vessel has been idle.
The vessel's utilisation for the second quarter was 46%.
The BOA Galatea acquired 3D EM data on the multi-client project called the Radiant from 27 January to 2 April. The vessel then started on the Lightning Bolt (phase 1-3) project on 3 April. This project is expected to be completed around mid-July.
The vessel's utilisation came in at 86% this quarter.
The Atlantic Guardian completed the Barents Sea multi-client campaign, which was done in cooperation with TGS, on 14 April. The vessel then commenced a new campaign in the Hammerfest basin on 15 April. The survey covers approximately 12 blocks in the Barents Sea and the Norwegian Sea, all which are among the predefined areas (APA) announced by the Norwegian Petroleum Directorate on 21 April. The campaign was completed 2 July.
The vessel's utilisation for the second quarter was 87%.
The EM Leader completed the contract for BG Group on 17 April. The vessel then transited to Canada, where it has been off-hire since 15 May. As announced on 16 June, EMGS reduce its vessel capacity from four to three vessels for the rest of 2015 by taking out the EM Leader. The Company will therefore book a provision in the second quarter related to loss on the EM Leader charter agreement for the rest of 2015 of USD 1.5 million.
The vessel's utilisation was 33% in the second quarter.
Multi-client revenues in the second quarter
The Company expects to record a total of approximately USD 7 million in multi-client revenues for the second quarter 2015. This is net of the contribution to partners.
EMGS will publish its second quarter and first half 2015 financial results on Thursday 20 August 2015 at 07:30 CET. A presentation will be held at the Company's office address, in Dronning Mauds gate 15 in Oslo, and will be broadcasted live over the Internet, starting at 10:00 CET.
Contact
Svein Knudsen, EMGS chief financial officer, +47 911 41 149
Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59
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 main offices in Trondheim and Oslo, Norway; Houston, USA; and Kuala Lumpur, Malaysia.
For more information, visit www.emgs.com