Sed Energy Holdings Plc · OSL:ENH

Sed Energy — SeaBird Exploration — Q1 2020 Earnings Presentation

22 slides from Sed Energy's earnings presentation, May 15, 2020

  1. Slide 1: SeaBird Exploration First Quarter Presentation

    SeaBird Exploration First Quarter Presentation 15 May 2020 CEO Gunnar Jansen CFO Erik von Krogh

  2. Slide 2: Forward-looking statements

    Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an

  3. Slide 3: Agenda

    Agenda • Highlights • Strategy update • Market and operational review • Financial review • Outlook • Q&A 3

  4. Slide 4: Highlights

    Highlights

  5. Slide 5: Q1-20 Highlights

    Q1-20 Highlights Key financial & operational figures • Revenues of $25.3 million ($12.3 million Q1 2019) • EBITDA of $1.8 million ($2.7 million Q1 2019) • 44% fleet utilization • Improved productivity • Equity ratio of 57% Major events • Signed loan agreement for $16 million credit facility • Contin

  6. Slide 6: Strategy update

    Strategy update

  7. Slide 7: Strategy update

    Strategy update Restructuring program • Relocation to Bergen completed • Full effect of cost reduction from Q3 2020 • Further measures to align cost with reduced activity resulting from COVID-19 and OPEC+ breakdown • Very low vessel cost when idle • Reduced SG&A – positioning for minimum onshore org

  8. Slide 8: Flexible fleet – niche streamer and source

    Flexible fleet – niche streamer and source 5 – 7 vessels capable of niche streamer and source operations EAGLE FULMAR PETREL GEO VOYAGER NORDIC HARRIER EXPLORER EXPLORER EXPLORER BARENTS EXPLORER VOYAG VAN NORD EXPLORER EXPLORER ICER TAGE Status Owned Owned Owned Flex TC Flex BB Flex TC Owned BARENT

  9. Slide 9: Market and operational review

    Market and operational review

  10. Slide 10: Vessel utilization

    Vessel utilization Vessel utilization • Q1 utilization of 44% for whole fleet 100% 90% 80% 76% • No yard stays during the quarter 70% 68% 68% 60% 50% 44% 42% 40% 30% 20% 10% 0% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 10

  11. Slide 11: Segment operating activity

    Segment operating activity Contract revenue by survey type (USD millions) 25,3 25 3,9 20 15,2 8,7 15 12,3 4,5 10 8,3 7,6 6,8 5,2 9,4 12,7 5 6,9 4,4 5,3 0,5 5,5 2,9 3,2 0 1,4 - - 0,9 - Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 3D 2D Other • 3D survey in Q1 2020 has been subcontracted to a third

  12. Slide 12: Operational update

    Operational update Four vessels in operation during the quarter Voyager Explorer (Asia Pacific) Q1 2020 VESSEL Completed OBN source project in Asia Pacific JAN JAN JAN JAN FEB FEB FEB FEB MAR MAR MAR MAR • VOYAGER Harrier Explorer (NSA) • Idle – transited to Norway for low cost layup OSPREY HARRIER

  13. Slide 13: Market trends

    Market trends The seismic market has been negatively impacted by COVID-19 and OPEC+ breakdown • In the short-term, operational effects by COVID-19 has led to surveys being delayed and contracts cancelled • Also effects on demand driven by COVID-19 and OPEC+ breakdown effects on oil price • However,

  14. Slide 14: Tender activity in SeaBird segments

    Tender activity in SeaBird segments • Stable tendering activity across segments • However, effects of COVID-19 and OPEC+ breakdown came late in the quarter • Still short lead-time from contract award to project start-up 14

  15. Slide 15: Financial review

    Financial review

  16. Slide 16: Key figures

    Key figures Unaudited figures Q1 2020 Q1 2019 FS 2019 Revenues 25 341 12 311 45 136 EBITDA 1 814 2 720 (5 638) EBIT (734) 138 (22 379) Profit/(loss) (334) (404) (23 315) Earnings per share (diluted) (0,00) (0,01) (0,07) Utilization 44 % 76 % 64 % Cash and cash equivalents 4 081 4 279 3 645 Cash flow

  17. Slide 17: Historical operating comparison

    Historical operating comparison Revenues EBITDA (USD millions) (USD millions) 25 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 3 20 2 2,7 2,0 1,8 16,0 1 0,8 0,6 15 0 12,3 25,3 -1 9,2 10 -2 0,9 7,6 ( 1,6) ( 1,7) 15,2 -3 12,3 -3,8 5 -4 8,3 7,6 -5 0 -6 ( 5,5) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Contract revenues Multi-clien

  18. Slide 18: Investments

    Investments Capital expenditure • Remaining outfitting of Fulmar Explorer (USD millions) has been postponed and will be subject 14,0 12,5 12,7 to contract award 12,0 10,0 • Rigging of Geo Barents will take place 8,0 upon contract award 6,0 4,0 • Outfitting of Fulmar Explorer and 1,5 2,0 0,5 rigging

  19. Slide 19: Financing

    Financing • Signed loan agreement for $16m credit facility with SMN Shall be apllied to: 1. Refinance SBX04 bond loan with maturity 30 June 2020 2. Seismic rigging of Geo Barents and Fulmar Explorer Debt maturity 7 000 000 6 000 000 5 000 000 4 000 000 USD 3 000 000 2 000 000 1 000 000 0 2020 2021 2

  20. Slide 20: Summary

    Summary

  21. Slide 21: Summary

    Summary High share of 3D in Q1. Positive operating cash flow Operational performance satisfactory. Low TD Continuing to deliver on costs. Prepared for low activity All about covid-19 and breakdown of OPEC+ from late Q1 Cash preservation mode. Ready to ramp quickly when activity returns 21

  22. Slide 22: SeaBird Exploration

    SeaBird Exploration

SeaBird Exploration — Q1 2020 Earnings Presentation on 6ix