Electromagnetic Geoservices (EMGS) Q4 2024 earnings summary

Executive summary

• Completed multi-client campaign on the Norwegian Continental Shelf, including CSEM and OBN surveys, and began transit to India, securing two contracts totaling $20 million.

• Q4 2024 revenues surged to $9.7 million, up from $1.1 million in Q4 2023, driven by pre-funding in Norway and new Indian contracts.

• Returned to profitability in 2024 with full-year net income of $2.8 million, reversing a loss in 2023 and laying a strong foundation for 2025.

• Vessel utilization improved to 31% in Q4 2024 from 0% in Q4 2023, reflecting increased operational activity.

• Backlog at year-end 2024 was $12.4 million, up from $2.9 million at the end of 2023.

Financial highlights

• Q4 2024 revenue was $9.7 million, with EBITDA at $10 million and adjusted EBITDA at $7.9 million.

• Full-year unaudited revenue reached $24.7 million, adjusted EBITDA was $5.2 million, and net income was $2.8 million.

• Available cash at year-end stood at $9.1 million, down $4.1 million from Q3.

• Operating profit for Q4 2024 was $8.8 million, up from a loss of $3 million in Q4 2023.

• Total borrowings at year-end were $19.7 million, with a convertible bond maturing in May 2025.

Outlook and guidance

• India expected to be a key market due to massive E&P investments, sector reforms, and two projects totaling $20 million with a three-month expected duration.

• Atlantic Guardian began transit to India in Q4 2024 for a proprietary survey starting Q1 2025; additional work in India secured via LOA.

• Discussions underway for CSEM surveys in West Africa for the return journey to Northern Europe.

• Ongoing efforts to expand opportunities in Asia and build global backlog; customer interest remains encouraging despite high uncertainty.

• Convertible bond of $19.5 million matures in May, with ongoing talks for a non-dilutive debt solution.