Electromagnetic Geoservices ASA

Climate Impact & Sustainability Data (2015-12 to 2017-12, 2022)

The last years have been challenging for the oil service industry in general and for EMGS in particular. Oil companies reduced their spending substantially as a result of the low oil price which resulted in a decline in revenues for many suppliers in the industry, including EMGS.
EMGS invests significant amounts of money in acquiring and processing CSEM data for multi-client library without knowing precisely how much of the data EMGS will be able to sell or when and at what price EMGS will be able to sell the data.
EMGS' working capital needs beyond the next 12 months is difficult to forecast and may be subject to significant and rapid increases which could result in additional financing requirements that EMGS may not be able to obtain on satisfactory terms or at all.

To meet the market conditions and reduction in revenues, EMGS has significantly reduced its cost base. The cost reduction program started in 2015 and continued throughout 2017.
The Company has reduced costs throughout the organisation, inter alia through an organisational re-adjustment, a significant reduction of employees, a reduction of the fleet size and a renewal of vessel charter agreements at improved terms.
On 8 March 2018, EMGS entered into a USD 4.0 million short term loan agreement with Siem Investments Inc. as the lender (the "Loan Agreement") to improve the Company's free cash position and ensure compliance with the minimum liquidity covenant in the Company's existing bond loan.
As further described in this Prospectus, the Company intends to carry out the Comprehensive Refinancing (as defined in section 11.5.1), consisting of; (i) the Rights Issue, raising gross proceeds of up to USD 12.5 million, whereof USD 10 million is underwritten by the Underwriting Syndicate (as defined in section 5.3); and (ii) the Convertible Bond Issue, which is fully underwritten by the Underwriting Syndicate, with net proceeds of approximately NOK 249 million.

Use of eco-friendly anchors that dissolve after use, leaving no discernible survey footprint.

No lost time injury events in 2022.
Proactive approach to employee welfare and safety, maintaining low levels of sick leave.

Adopted a policy and standard for sustainability and corporate social responsibility (CSR), covering labour rights, anti-corruption, environment, and human rights.
Implemented an anti-corruption compliance program with mandatory training for all employees.
Established a whistle-blower procedure.

Demand for EM services is dependent on offshore oil and gas E&P budgets.
Fleet status and vessel utilization.
Technical downtime, steaming time between surveys, and unpaid standby time negatively affect operating results.
Seasonality and adverse weather conditions.
Currency fluctuations.

Cost optimization and control.
Flexible and scalable operating model (chartering vessels, mix of contract and multi-client projects).
Negotiated flexibility in vessel charter to reduce cash burn during low utilization periods.
Close monitoring of liquidity risk, including weekly updates of sales forecast and vessel schedule.

Climate Change Data