TRONDHEIM, Norway – Electromagnetic Geoservices ASA (EMGS) recorded revenues of $16.3 million in 2Q 2015, up from $12.1 million in the previous quarter and down from $41.7 million in the corresponding quarter in 2014.
Contract sales ended at $9.1 million, while sales from the multi-client library ended at $7.2 million. EMGS said that the results were negatively affected by extraordinary costs related to the company’s cost reduction program.
In October, the company announced that it is implementing further cost reducing measures, to bring the operational cost level in line with the expected activity level going forward. The market outlook continues to be difficult to predict and the company said it will prepare for a prolonged negative market sentiment lasting into 2016 and 2017.
EMGS said that while the geophysical market is not currently very receptive in adopting new technology, the company believes that positive responses will materialize in higher demand for EM services when the oil market returns to equilibrium.
During the quarter, the vessel BOA Thalassa completed the first phase of the announced contract work in Malaysia and the vessel is currently operating on an extension of that contract worth approximately $7 million. Also, the BOA Galatea completed contract work for PEMEX offshore Mexico, while the Atlantic Guardian finalized a multi-client project in the Hammerfest basin and on Nykhøgda in Norway.
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