Norway’s Electromagnetic Geoservices (EMGS) has seen its profit slide into the red in the third quarter of 2015 on weak market and impairments compared to a year-ago period.
Despite tightening up the wallet, the Oslo-listed company posted net loss of USD 25.4 million, compared to net income of USD 7 million in the same period of 2014.
For the first three quarters of 2015, the loss ended at USD 52.6 million, versus a profit of USD 12.8 million in the same period last year.
EMGS recorded revenues of USD 16.3 million in the third quarter 2015, a drop from USD 41.7 million in the prior-year quarter. The contract turnover amounted at USD 9.1 million, while multi-client sales were at USD 7.2 million this quarter.
Revenues for the first nine months of USD 60.6 million decreased 58% from last year.
The company booked impairment of multi-client library of USD 3.9 million, equipment of USD 1.6 million and goodwill of USD 14.4 million. No impairment was booked in the corresponding period in 2014.
In addition, EMGS, which is reportedly looking for a new CEO, today proposed to the shareholders to raise additional equity of up to 32.5 million to support operations going forward.
As of September 30, 2015, EMGS’ backlog was at USD 9 million, however, deals worth approx. USD 10 million were signed shortly after the quarter-end, the company noted.