Electromagnetic Geoservices (EMGS) Q3 2024 earnings summary

Executive summary

• Atlantic Guardian returned to Norway, completing four EM surveys and one OBN survey in the Barents Sea, and began a fully prefunded North Sea survey with revenue to be recognized in Q4.

• First commercial seismic OBN project completed in collaboration with Velocitas Geo Solutions, meeting all project goals.

• Revenues for Q3 2024 were USD 1.1 million, down from USD 1.6 million in Q3 2023; YTD revenues rose to USD 15.0 million from USD 6.8 million year-over-year.

• Vessel utilization increased to 40% in Q3 2024 from 0% in Q3 2023, with the Atlantic Guardian focused on multi-client projects in Norway.

• Backlog as of 30 September 2024 was USD 12.0 million, up from USD 0.5 million at the end of Q3 2023.

Financial highlights

• Q3 2024 revenues totaled USD 1.1 million, with USD 0.2 million from pre-funding and USD 0.5 million from late sales.

• EBITDA was negative USD 3.6 million; adjusted EBITDA was negative USD 5.9 million.

• Operational cost base for Q3 was USD 7.0 million, up from USD 6.7 million in Q2.

• Available cash increased by USD 7.4 million during Q3, reaching USD 13.2 million at quarter-end.

• Total borrowings stood at USD 19.5 million as of 30 September 2024.

Outlook and guidance

• Revenues from fully prefunded North Sea and OBN surveys completed in Q3 are expected to be recognized in Q4 2024.

• Management notes high uncertainty but is encouraged by year-to-date activity and customer interest.