June 19 (Bloomberg) -- Electromagnetic GeoServices ASA, a surveyor of underwater oil and gas fields, rose the most on Oslo’s OBX index of most-traded stocks after an agreement to map the Barents Sea eased concerns about its order backlog.
Shares in the Trondheim, Norway-based company climbed as much as 3.3 percent, the most in almost a week, and were 2.1 percent higher at 9.795 kroner as of 9:25 a.m. in the Norwegian capital. Today’s performance ended a three-day run of losses.
EMGS signed a deal with TGS Nopec Geophysical ASA, Norway’s largest seismic surveyor, to invest in a 3D electromagnetic multiclient survey covering about 3,300 square kilometres (2,050 square miles) in the Hoop area of the Barents Sea, the companies said in a statement. EMGS will get access to TGS’s 2D seismic data and TGS will be able to use the survey’s 3D data to plan further work in the area, they said.
“It’s positive to see EMGS getting access to TGS’s 2D data to plan and integrate the survey and to get access to TGS’s salesforce,” Pareto Securities ASA said in an e-mailed note. “We estimate that EMGS now has a firm backlog for second-quarter execution of about $45 million,” compared with the broker’s own estimate of $52 million and market consensus of $51 million, it said.
EMGS, which uses electromagnetic technology to search for oil and gas under the seabed, has declined more than 27 percent during the last 12 months amid investor concern that the company lacked enough contracts for next year. The company’s method of mapping the seabed competes with the seismic technology employed by companies such as Schlumberger Ltd. and Petroleum Geo-Services ASA.
TGS, based in Aker near Oslo, fell 1.5 percent to 188.9 kroner as of 9:25 a.m., curbing its gain during the last 12 months to 21 percent.
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