Electromagnetic Geoservices ASA (EMGS) implements further cost reductions reflecting the challenging market conditions in the oil service industry.
As communicated in the first quarter report, the Company initiated cost reduction measures in the beginning of the first quarter. These measures have proven successful. However, due to further delays in contract negotiations and lower than expected demand for EM data, EMGS Management has decided to implement an additional cost reduction program.
The key elements of the program include a reduction of EMGS global headcount including consultants by 20% and a reduction of the vessel capacity by one vessel (from four to three). In addition, the Company expects to reduce its capital expenditures by approximately 50% in 2015 compared to the guidance given in the fourth quarter 2014