EMGS offers vessel update, restructuring details

Offshore staff

OSLO, Norway – Electromagnetic Geoservices ASA (EMGS) has provided an update on its vessel activity and utilization following the close of 3Q 2015, which came in at 63% compared with 69% for 3Q 2014. For the first nine months this year, the vessel utilization was 70%, the same as for the corresponding period last year.

In 3Q 2015, the EMGS’ vessels were allocated 16% to contract and 48% to multi-client programs. In the 3Q 2014, the allocation was 31% and 38% respectively.

EMGS recorded 9.0 vessel months this quarter, compared with 11.4 vessel months in 2Q 2014.

Vessel activity

The BOA Thalassa has been in Asia for the full third quarter positioned for expected contract work in the region. The vessel was idle from the beginning of the quarter, until commencement of the announced contract in Malaysia on Sept. 12. The vessel's utilization for this quarter was 26%.

The BOA Galatea acquired 3D EM data on the multi-client project called Lightning Bolt from April 3 to July 15 and from July 28 to Sept. 3. From July 16 to 27, the vessel acquired data on the multi-client project called Stratus. On Sept. 11, acquisition commenced for PEMEX in Mexico. The vessel's utilization came in at 81% this quarter.

The Atlantic Guardian commenced a campaign in the Hammerfest basin on April 15. The campaign had a short break from July 4 to 8 and was completed on Sept. 16. The survey was extended and ended up covering approximately 22 blocks in the Barents Sea and 5 in the Norwegian Sea. After this, the vessel started on a short survey in the Norwegian Sea on Sept. 17 The survey was completed on Oct. 2 and the vessel will be laid up in Bergen from Oct. 3 until the beginning of December. The vessel's utilization for the second quarter was 84%.

The EM Leader has been off-hire since May 15.

Multi-client revenues and other announced measures impacting the third quarter

The company expects to record a total of approximately $7 million in multi-client revenues for 3Q 2015. This is a combination of pre-funding and late sales, and net of the contribution to partners.

In connection with the company's announced cost reduction measures, EMGS will book restructuring charges of $1.3 million and $1.5 million in the third and fourth quarter, respectively. In addition, a provision for onerous contracts (loss on charter agreements) of $4.4 million will be booked in the third quarter, related to expected idle time on the EM Leader and the Atlantic Guardian in a given time period.

10/08/2015

 

 

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