The Norwegian provider of geophysical services to the oil and gas industry Electromagnetic Geoservices (EMGS) narrowed its quarterly loss as revenues increased.
The geophysical company on Thursday posted a net loss of $11.2 million, compared to the net loss of $26 million in the prior-year quarter.
Further, EMGS recorded revenues of $15.1 million in the second quarter of 2016, up from $12.1 million reported for the corresponding quarter of 2015.
The company’s contract sales totaled $0.4 million, while multi-client sales amounted to $14.7 million. For the second quarter of 2015, contract sales were higher and totaled $4.8 million while multi-client sales were lower and amounted to $7.3 million.
Vessel utilization for the second quarter of 2016 amounted to 76% with all vessels allocated to multi-client projects and no vessel capacity was spent on contract work.
In the comparable quarter of 2015, the vessels were allocated 5% to contract work and 63% to multi-client projects, amounting to the utilization of 68%.
As of 30 June 2016, EMGS’ backlog was at approximately $5 million, compared with a backlog of $15.8 million at the end of the second quarter in 2015.
Providing market outlook for oil services in the upcoming period, the geophysical company said the market is challenging and characterized by high uncertainty.
“We continue to be challenged by a very difficult market wherein opportunities are being pushed back as the oil industry is re-adjusting its level of spending,” says CEO of EMGS, Christiaan Vermeijden.
The company said it expects that the awards for the 23rd licensing round in Norway will trigger multi-client late sales in the second half of 2016, in addition to the uplift multi-client sales in the second quarter.
Offshore Energy Today Staff