EMGS shares tumble after warns on revenue

OSLO, July 4 (Reuters) - Shares in Norwegian seismic surveyor Electromagnetic Geoservices (EMGS) (EMGS.OL) plunged more than 24 percent on Friday after the company warned revenue in the second quarter would be weaker than market consensus.

EMGS said it expected to report revenues in the range of $22-24 million in the second quarter this year, down from $37.8 million in the second quarter last year. Revenues in the first quarter of 2008 were at $43.5 million.

"The reduced revenues are caused by postponed licensing rounds in India and Norway as well as by delayed contracts in West Africa, in addition to an unexpected yard-stay for one vessel," EMGS said in a statement.

EMGS also said fleet utilisation rate in the second quarter was negatively affected by the transportation of two vessels for operations in the Barents Sea.

"The EM market continues to grow, but its trajectory is not linear quarter-to-quarter due to the uneven timing of tenders and licensing rounds, in addition to the seasonality of weather and budgets," said EMGS Chief Executive Terje Eidesmo.

At 0723 GMT, shares in EMGS were down 23.6 percent at 28.80 crowns, valuing the group at about 2.16 billion crowns ($426.7 million).

The company's second-quarter results will be published on August 21. (Reporting by Aasa Christine Stoltz; Editing by Quentin Bryar)