EMGS sier følgende i sin rapport for 4. kvartal 2016:
EMGS recorded revenues of USD 20.5 million in the fourth quarter 2015, up from USD 16.3 million in the third quarter and down from USD 52.5 million in the fourth quarter 2014.
Contract sales ended at USD 9.0 million, while sales from the multi-client library ended at USD 11.5 million in the quarter. The results were negatively affected by announced restructuring charges related to the Company’s cost reduction program.
«I am pleased to have started at EMGS. The low oil price presents a challenge as exploration budgets continue to come down. However, with the adoption of our technology on the rise, EMGS continues to be well positioned within the industry. I am encouraged by the healthy amount of business opportunities, even though our customers tend to delay decisions to award work closer to the start-up of the surveys,» says CEO of EMGS, Christiaan Vermeijden.
EMGS expects the cost reduction measures to have full effect from the second quarter 2016 and the Company is currently ahead of its target to cut cost.
The market outlook for oil services continues to be challenging, and is characterised by high uncertainty. Oil companies have continued to announce further reductions in their spending for 2016 compared to 2015 as a response to the sharp decline in oil price. The interest in the EM technology from the oil companies is healthy, although challenged by the reduced budgets.
Based on the current operational forecast, EMGS expects to operate two vessels in 2016 with an option to include a third vessel if certain prospects materialise. The Company expects to keep one vessel in Asia throughout 2016, while the other vessel is expected to operate in Europe and the Americas. EMGS will continue to invest in its multi-client library in selected areas.