Slide 1: SeaBird Exploration Second Quarter Presentation
SeaBird Exploration Second Quarter Presentation 15 August 2014 CEO Dag Reynolds CFO Nils Haugestad
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
Slide 3: Highlights
Highlights Financial results • Revenues of $44.7 million ($33.7 million Q1 2014) • EBITDA of $12.6 million ($10.2 million Q1 2014) Quarterly observations • Revenues up from previous quarter due to increased utilization across the fleet – Vessel utilization for the second quarter was 85% • Market dyn
Slide 4: Financial summary
Financial summary
Slide 5: Historical operating comparison
Historical operating comparison Revenues EBITDA 60 (USD millions) 16 (USD millions) 50.9 14 13.2 12.6 50 44.7 12 37.6 38.7 10.2 40 33.7 10 30 8 49.1 6 20 41.0 3.9 33.6 33.6 30.5 4 3.1 10 2 0 0 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Contract revenues Multi-client revenues Capital
Slide 6: Vessel utilization
Vessel utilization 1% 100% 3% • Q2 contract utilization of 72%, up 6% 8% 90% 13% from 64% in Q1 24% 7% 15% 4% 80% 41% 13% • Geo Pacific operating on a multi- 70% 22% 12% client survey throughout Q2 60% 3% • Transit time 7% of fleet capacity 50% 40% 82% • Yard stays account for 8% of vessel 72% 30% 6
Slide 7: Income statement
Income statement CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended Six months ended 30 June 30 June All figures in USD millions (except for EPS) Restated Restated 2014 2013 2014 2013 Contract 41.0 33.6 71.5 83.5 Multi-client 3.7 4.0 6.9 4.1 Total revenues 44.7 37.6 78.4 87.6 Cost of sales (28.4
Slide 8: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended Six months ended 30 June 30 June All figures in USD millions Restated Restated 2014 2013 2014 2013 Profit/(loss) before income tax (7.1) (5.6) (7.5) (3.2) Non-cash items 18.1 8.3 28.5 17.1 Paid income tax (0.8) (1.0) (1.2)
Slide 9: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of As of 30 June 31 December All figures in USD millions (except for equity ratio) Restated Restated 2014 2013 2013 Property, plant and equipment 116.8 130.5 122.8 Multi-client library 10.7 6.0 7.1 Other non-current assets 1.3 1.3
Slide 10: Multi-client update
Multi-client update Multi-client revenues by quarter • Multi-client revenues in the (USD millions) quarter of $3.7 million 6 5.1 5 – $2.8 million related to Geo Pacific 4.0 3.7 4 3D survey 3.2 3 – Remaining sales primarily relate to 1.8 2 pre-2013 surveys 1 0 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Slide 11: Review of financing
Review of financing COVENANT RESTRICTIONS Equity USD millions AP +60 ratio Cash 30 June 2014 $0.9 26.8% $12.6* Restrictions 30 June 2014 < $2.5 25.0% ≥$10.0 *Includes $0.5 million of restricted cash Funded debt profile (USD millions) 120 104.0 97.7 100 7.2 7.2 14.9 80 14.7 60 40 81.9 75.8 20 0 Face
Slide 12: Refinancing update
Refinancing update Status update • Active dialogue with all stakeholders regarding refinancing • Extension of Hawk lease under discussion Upcoming maturities • Hawk lease expires 31 August 2014 – $6.5 million • Perestroika convertible bond due 30 September 2014 – $14.9 million • SBX03 matures 19 Dec
Slide 13: Operational review
Operational review
Slide 14: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region 60 (USD millions) (USD millions) 60 50 50 12.2 40 9.3 40 18.3 30 4.5 13.4 16.6 8.6 30 10.1 11.0 10.9 14.3 10.0 6.8 20 20 14.0 23.7 6.2 31.7 12.0 18.0 10 20.3 20.4 10 20.8 14.8 11.0 14.3 7.1 10.7 0 - - 0 4.6 Q2 2013
Slide 15: Global footprint
Global footprint Critical mass provides optimal service flexibility – Increased regional competitiveness Harrier Munin Explorer Explorer – Reduced steaming – Increased utilization Osprey Hawk Explorer Explorer Voyager Explorer Geo Pacific Northern Explorer Aquila Explorer 15
Slide 16: Multi-client activity
Multi-client activity • Several multi-client survey opportunities under consideration – Aligned with licensing rounds • Opportunistic use of multi client to improve vessel utilization • Three vessels currently active on prefunded multi-client surveys – Geo Pacific completing 3D survey in West Africa
Slide 17: Market trends
Market trends • Continued market concentration provides opportunity for further consolidation – 3D providers increasingly focusing on 12+ streamer market – CGG and Western Geophysical announced major fleet reduction; others expected to follow – Reduced 2D/source/niche 3D vessel capacity among qualif
Slide 18: Changing supply dynamics
Changing supply dynamics 2D and source market Vessels exiting 3D market in 2014 Operational • Increased competition from larger multi- Vessel Owner/Operator streamer capacity Symphony CGG 12 streamer vessels in the 2D and source Viking I CGG 10 market Vanquish CGG 10 Amadeus CGG 8 • Relatively short
Slide 19: Market pricing and outlook
Market pricing and outlook • Pricing has generally remained firm 2D High end 140 (USD thousand) – Current market situation may $125 $125 120 selectively have a negative impact in $110 $110 $110 $110 100 the second half of the year 80 $90 $90 $90 $90 $90 60 $70 40 • Following a solid second quarter,
Slide 20: TGS letter of intent
TGS letter of intent • Expect start-up in Q4 2014 • Up to 200,000 km • Revenues estimated at $110 - $115 million • Limited seismic data available – Only 20% of offshore acreage covered – Anticipating increased demand for 2D and source capacity ‘Upon a transparent licensing system, attractive fiscal
Slide 21: Refocused strategy
Refocused strategy • Continued focus on core operating segments – Remain market leader and most productive service provider by continued improvement of marine and seismic operations • Maintain global reach and critical mass • Improve financial and operational performance – Closing Dubai office; enha