EMGS: Vessel Activity and Multi-Client Sales Surge in Q4 2024

Electromagnetic Geoservices ASA (EMGS) has reported a significant increase in vessel activity and multi-client sales for the fourth quarter of 2024. The Company's Atlantic Guardian vessel achieved a utilization rate of 31% in Q4 2024, compared to 0% in the same period last year. This marked improvement can be attributed to several factors, including the completion of multi-client surveys in the North Sea and the Norwegian Sea, as well as the commencement of transit to India for an upcoming proprietary survey.

The Company expects to record approximately USD 9.4 million in multi-client pre-funding revenue in the fourth quarter of 2024. This figure represents a substantial increase compared to previous quarters, driven by the acquisition of fully prefunded multi-client surveys, increased demand for EMGS' services, and potentially improved market conditions. The higher revenue suggests that there was a greater demand for EMGS' services in the fourth quarter compared to previous quarters, which could be due to an increase in exploration activities or a higher interest in the Company's proprietary electromagnetic (EM) technology for offshore hydrocarbon exploration.

The Atlantic Guardian's transit to India for an upcoming proprietary survey had a significant impact on the company's overall performance in Q4 2024. The vessel completed multi-client surveys in the North Sea and the Norwegian Sea in the quarter, but the utilization rate for the fourth quarter was 31% compared with 0% for the fourth quarter 2023. This indicates that the vessel was not fully utilized during the quarter, which may have affected the company's revenue and profitability. Additionally, the company expects to record approximately USD 9.4 million in multi-client pre-funding revenue in the fourth quarter of 2024, which includes the fully prefunded multi-client surveys acquired over the third and fourth quarter, for which final data delivery was made in the fourth quarter. This suggests that the company's revenue was primarily driven by multi-client surveys, and the proprietary survey in India may not have contributed significantly to the company's overall performance in Q4 2024.

In conclusion, EMGS' vessel activity and multi-client sales update for the fourth quarter of 2024 demonstrates a strong performance, with a significant increase in utilization rate and multi-client revenue. The Company's focus on proprietary electromagnetic technology and its ability to adapt to changing market conditions have contributed to this positive outcome. As the Company continues to expand its services and explore new opportunities, investors should keep a close eye on its progress in the coming quarters.