EMGS is stacking its vessels and terminating the contracts of most employees and all consultants as a result of the Covid-19 pandemic.
EMGS is stacking its vessels and terminating the contracts of most employees and all consultants as a result of the Covid-19 pandemic.
‘Following the end of acquisition work under the two-year contract in the Americas, the recent sharp oil price decline and the uncertainty created by the global Covid-19 pandemic, EMGS has experienced a rapid deterioration in the company’s backlog for 2020,’ it said in a statement.
‘The company has resolved to immediately start the transition to a low-cost set-up to preserve sufficient liquidity until the company can benefit from and scale up to meet an expected future increase in oil company investments.’
As a result, EMGS will redeliver the vessel Petrel Explorer at the end of the current fixed charter period, and cold stack the Atlantic Guardian as soon as practicably possible. It will terminate the contracts of all employees and consultants with the exception of a skeleton crew, which will continue to service the multi-client late sales and consulting market and form the basis for a future scale-up.
EMGS will continue to deliver all the company’s existing customer contracts as planned. ‘Even with these decisive actions, no guarantees can be given that the company will be able to preserve sufficient liquidity. Continued operation will thus not only be dependent on the timely and successful implementation of the above measures, but also that the company is able to identify and implement other material cost reduction measures, including by reducing the interest-bearing debt and non-interest bearing liabilities,’ EMGS said in a statement.
