EMGS cuts 20 per cent of the wage costs – E24

(E24) Published: 10:03 – 12.10.2016, Updated: 10:40 – 12.10.2016

Seismikkselskapet EMGS alerts that it will cut around 20 percent of labor costs.

the Cause is the reduced level of activity, provide the company, which will reduce the cost globally through measures that, among other things, temporary and permanent layoffs.

Kostnadstiltakene will have the gradual effect since the reduction in the number of employees on land and offshore to follow different timelines, report EMGS.

the Market is expected to remain muted until the oil price picks up and customers are increasing their exploration and produksjonsbudsjetter, ” says EMGS ceo Christiaan Vermeijden.

He goes on to say that cost reduction and cost control will be important areas for the company.

Inntektssvikt for EMGS: – The money runs out

Inntektssvikt in the third quarter

EMGS as the rest of the industry has been hit hard after oil prices was more than halved from a peak in 2014.

the Latest in the previous week showed the last update from the oil service company that it still is tough times. Then joined EMGS a utilization of the fleet at just 52 per cent in the third quarter.

Analyst John Olaisen at ABG Sundal Collier pointed out then that the EMGS receives around four million dollars in revenue in the third quarter, while the company has around 16 million in underlying costs

the Money runs out here, said Olaisen to E24.

Bemanningskutt

In our company was forced to cut 15 per cent of the global workforce.

EMGS its payroll expenses in the first half of the year was 13.4 million dollars, which was a decrease from 22.4 million in the same six months the year before. The decrease was primarily driven bemanningskutt.

EMGS uses electromagnetic signals to measure the resistance of the geological layers under the seabed.

Hydrocarbons (oil and gas) have a higher electrical resistance than water, rock and salt, and therefore can EMGS identify possible hydrocarbons in the underwater teams.

In a multi-client study brings into seismikkdata that all interested customers can buy, and one puts in the time survey as you are comfortable with how many that have purchased in advance (pre-funding).

A good part of the revenue from multi-client, in the form of so-called post-sales support of the data, however, may come months or years after a survey in the area is completed.

A kontraktundersøkelse be made for a single customer and the payment is ongoing during the investigation.