Electromagnetic Geoservices cut 15% of headcount

EMGSThe Norwegian geoscience company Electromagnetic Geoservices (EMGS) cut 15% from headcount in attempt to complete restructuring program and to cut costs of 10 million USD per year. The headcount changes include centralizing and merging departments, which follows the last year 10% workforce reduction. The company succeeded to reduce costs during the first quarter of 2016 by 0.7 million USD, mostly by restructuring and optimization of activities. The company’s vessel utilization in last quarter of 2015 reached 21%, compared to 63% an year ago. During 2015 the EMGS vessel’s utilization was 59%, which is below the previous year result of 69%.

“Whilst the interest in our technology continues to be high, our customers are delaying, cancelling or reducing work scopes, resulting in a lower demand for our services. Therefore, we continue to focus on cost control and cash flow, and implement changes to increase the efficiency of the organization”, said the CEO of EMGS, Christiaan Vermeijden.

Meanwhile, Petroleum Geo-Services (PGS) and Electromagnetic Geoservices (EMGS) settled the patent disputes and granted mutual licenses to use the each other’s patents and work jointly on future EM surveys. The dispute dates back to 2013, when EMGS filed a complaint in against PGS in the High Court of Justice in UK.

Electromagnetic Geoservices ASA (EMGS) is a Norwegian geophysical services company using proprietary marine electromagnetic technology to support oil and gas companies in their search for offshore hydrocarbons. The company is located in Trondheim, but also has offices in in Oslo, Houston and Kuala Lumpur.