Electromagnetic Geoservices (EMGS) Q2 2024 earnings summary

Executive summary

• Revenue surged to USD 13.8 million in Q2 2024, driven by fully pre-funded multi-client surveys in Brazil and Norway, with vessel utilization at 51%.

• Secured several fully pre-funded multi-client acquisitions in Norway for 2024 totaling USD 4.8 million and a USD 1.5 million Ocean Bottom Node seismic survey.

• Backlog rose to USD 9.2 million as of June 30, 2024, reflecting increased customer engagement and future project pipeline.

• Net income reached USD 3.7 million in Q2 2024, reversing a net loss in the prior year.

• Atlantic Guardian completed Brazil survey and began Norwegian campaigns.

Financial highlights

• Q2 2024 revenue was USD 13.8 million, with USD 12.0 million from pre-funding and USD 1.3 million from late sales.

• EBITDA was USD 7.8 million; adjusted EBITDA was USD 7.0 million.

• Operational cost base rose to USD 6.7 million, mainly due to vessel operations.

• Free cash decreased by USD 2.8 million, ending at USD 5.9 million.

• Trade receivables increased by USD 11.8 million compared to the previous quarter.

Outlook and guidance

• Sufficient multi-client pre-funding work secured to occupy the vessel through Q3 2024, with additional acquisition work being pursued for 2025.

• Several fully pre-funded multi-client acquisitions and a seismic survey are scheduled for 2024, supporting continued activity.

• Customer interest remains high, but uncertainty persists regarding future project awards.