Norwegian geoscience firm Electromagnetic Geoservices (EMGS) says it is to reduce its "employee expenses" by about 20%, through temporary and permanent layoffs on shore and offshore and other measures, due to a reduced level of activity.
Q2 "employee expenses" were US$5.9 million, compared with $9.25 million in the same period last year. EMGS didn't say how many staff would be impacted.
"The market is expected to continue to be subdued until the oil price recovers and customers increase their exploration and production budgets. Cost reductions and cost control will therefore continue to be important focus areas in the company. However, we will maintain a footprint in our core markets to be able to efficiently market our services and be ready when the market turns," says Christiaan Vermeijden, CEO of EMGS.
Earlier this month, EMGS said its vessel utilization rate for Q3 2016 was 52%, compared with 63% for Q3 2015. For the first nine months this year, the vessel utilization was 61%, compared with 70% for the same period last year.
In August, EMGS recorded revenues of $15.1 million in Q2 2016, up from $12.1 million in Q2 2015, but starkly down from $42.5 million in Q2 2014.
Image from EMGS.
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