Norway’s Electromagnetic Geoservices (EMGS) has plunged into the red in the fourth quarter of 2015 on weak market and restructuring charges related to the company’s cost reduction program.

The Oslo-listed company posted net loss of USD 24.1 million, compared to net income of USD 13.1 million in the same period of 2014.

EMGS has eneded 2015 with loss of USD 76.7 million, versus a profit of USD 25.9 million in 2014.

Fourth-quarter revenues were USD 20.5 million, a drop from USD 52.5 million in the prior-year quarter. The Q4 contract turnover amounted at USD 9 million, while multi-client sales were at USD 11.5 million.

Full-year revenues decreased 59% year-over-year, from some USD 198 million to USD 81.1 million.

“Based on the current operational forecast, EMGS expects to operate two vessels in 2016 with an option to include a third vessel if certain prospects materialise. The Company expects to keep one vessel in Asia throughout 2016, while the other vessel is expected to operate in Europe and the Americas,” the company said in a press release.

As of December 31, 2015, EMGS’ backlog was at USD 21 million, compared with a backlog of USD 44 million at the end of 2014.

Subsea World News Staff