Q2 2024 Electromagnetic Geoservices ASA Earnings Call (Pre-Recorded) Transcript
Key Points
- Successfully mobilized the Atlantic Guardian after a long idle period and completed a fully prefunded multiclient survey in the North Sea.
- Started acquisition on the fully-prefunded Petrobras' multiclient survey in the Espirito Santo Basin, offshore Brazil, with a contract value of $11.7 million.
- EMGS does not require a lengthy environmental permitting process for EM surveys in Brazil, unlike seismic companies, which can face significant delays.
- The company has a strong track record in predicting the presence or absence of hydrocarbons in the Jurassic section in the Barents Sea, with a 100% success rate.
- Despite a reduction in cash, the financial position remains strong with an available cash balance of $8.7 million.
- Revenues during the quarter were only $239,000, a significant decrease from previous quarters.
- EBITDA came in at negative $2 million, and adjusted EBITDA was negative $3.8 million, indicating financial challenges.
- Operational cost base increased to $4.1 million in the first quarter, up from $2.9 million in the fourth quarter, primarily due to the Atlantic Guardian being in operation.
- Free cash decreased by $1.6 million in the first quarter, ending at $8.7 million.
- Interest expenses on the convertible bond and other interest expenses amounted to $0.8 million in the first quarter, further impacting cash flow.
Welcome to the presentation of EMGS' First Quarter 2024 Results. I'm again here with our CFO, Anders Eimstad, and together we will present these results. Please take note of our disclaimer.
During the quarter, we mobilized the Atlantic Guardian after a long idle period, and we completed the fully prefunded multiclient survey over the PL1202S in the North Sea. Upon completion of the survey, we started the transit towards Brazil.
The revenues during the quarter were only $239,000. The USD 2.7 million in revenues from the multiclient survey in the North Sea will be recognized upon data delivery in the second quarter in accordance with the IFRS 15 accounting rules.
Our EBITDA came in at negative $2 million, and the adjusted EBITDA came in at negative $3.8 million. We capitalized $1.2 million in expenses related to the North Sea multiclient survey during the quarter.
The free cash balance at the end of the quarter was $8.7 million. And subsequent to the end of the first quarter, we have arrived in
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