emgs secures strong position in fast growing oil segment
May 25,2007, emgs, the pioneer in seabed logging technology, experienced an eventful first quarter in 2007. A growth in the number of client requests towards the end of the quarter - resulting in two significant contracts - and a successful financing and listing of the emgs shares on the Oslo Stock Exchange, more than compensated for seasonally weak demand, high steaming activity and non-recurring cost items. Revenues in the first quarter of 2007 came to USD 25.9 million, while the EBITDA was negative by USD 8.0 million.
Revenue is expected to pick up throughout the year. Based on the current backlog and anticipated contracts, emgs expects revenues in the range of USD 160-170 million for 2007.
* On track for revenues of USD 160-170 million in 2007
* Strong market development
* Non-recurring cost items of approximately USD 8.6 million
* Vessels and equipment to support growth plan through 2008
+ Existing vessel charters extended for years to come
+ Second purpose-built ship secured for delivery in 2008
* Capital for further growth secured. Successful listing on the Oslo Stock Exchange on March 30
’emgs laid a solid foundation for further growth during the first quarter and we are pleased to see that more and more oil companies adopt our game-changing technology. emgs is very optimistic about growth prospects. We see the potential for seabed logging to develop into a tool which all companies use widely and to the same extent as seismic surveys’, comments CEO Terje Eidesmo.
Please see the full report and presentation for first quarter 2007 enclosed.
For further information visit www.emgs.com, or contact:
Phone: +47 73 56 88 10
emgs is the global market leader for the provision of seabed logging services, a technology which enables the detection of hydrocarbons beneath the seabed prior to drilling. The company has developed this proprietary and patented technology over the past 10 years. Since its incorporation as a separate company in 2002, emgs has conducted more than 200 commercial surveys for many of the world’s leading oil and gas companies and offshore operators.
Disclaimer for forward-looking statements
This quarterly report includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for emgs ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the emgs’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although emgs ASA believes that its expectations and the information in this report were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this report. emgs ASA nor any other company within the emgs group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the report, and neither emgs ASA, any other company within the emgs group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the report. emgs ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the report.
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- Svein T Knudsen
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