Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q4 2013 Earnings Presentation
22 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 6, 2014
Slide 1: Electromagnetic Geoservices ASA Fourth Quarter 2013 Results
ELECTROMAGNETIC GEOSERVICES ASA FOURTH QUARTER 2013 RESULTS CEO, Roar Bekker CFO, Svein Knudsen 6 February 2014
Slide 2: Disclaimer
DISCLAIMER This quarterly presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates
Slide 3: Highlights Fourth Quarter 2013
HIGHLIGHTS FOURTH QUARTER 2013 Operational highlights • Two vessels operating for Pemex - challenging conditions • Completion of contracts in Brunei, Malaysia and Angola • Contract for BOA Thalassa with Apache in Australia • Strong technology track-record in the Barents Sea – Expansion of cooperatio
Slide 4: Financial Overview
FINANCIAL OVERVIEW aw emgs
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Key figures Q4 Revenues and revenues/costs per vessel month (USD Million) • Revenues of USD 44.9 million 60,00 5,0 50,00 7.5 • EBITDA of USD 6.5 million 4,0 40,00 • Net income of USD 1.3 million 3,0 30,00 2,0 20,00 Multi-client Q4 10,00 1,0 • Sales of USD 4.8 million 0,00 0,0 Q4
Slide 6: Vessel Utilisation
VESSEL UTILISATION • Fleet utilisation at 50% 100 % - Contract: 46% 90 % - Multi-client: 4% 80 % • BOA Thalassa (37%) - Completed contract in Brunei and Malaysia 70 % - Yard stay of 14 days 60 % - Waiting for permits to Australia 50 % • BOA Galatea (89%) - Operating for Pemex 40 % - Challenging cond
Slide 7: Capital Structure
CAPITAL STRUCTURE Balance sheet as at 31.12.13 (USD million) Cash and working capital 250 • Cash at USD 56.5 million (46.9 Q3) • Trade receivables increased by 200 USD 4.2 million to USD 31.5 million USD 56.8 million • Other receivables reduced by USD 3.6 million 150 • Trade payables at USD 15.9 mil
Slide 8: Operational Overview
OPERATIONAL OVERVIEW aw emgs
Slide 9: Update on Contract with Pemex
UPDATE ON CONTRACT WITH PEMEX Large long-term contract • USD 100 million • Estimated to 15-16 vessel months • Possible extensions of 2 x USD 25 million Status for Q4 • Two vessels – appr. 4 vessel months • Challenging conditions • Revenues of USD 24 million • Close relationship with PEMEX Going forw
Slide 10: Strategic Partnership with North Energy
STRATEGIC PARTNERSHIP WITH NORTH ENERGY Substantial multi-client sale – USD 12.1 million • Sale of Barents Sea EM data library • Payment in convertible bond – strike price of NOK 4.15, coupon of 6% and maturity 6 months Pre-funding of future Barents campaign – USD 1.6 million • Commitment from North
Slide 11: Barents Sea – EM Technology Improves Exploration Success
BARENTS SEA – EM TECHNOLOGY IMPROVES EXPLORATION SUCCESS • Strong track record confirms technology – 20 of 20 exploration wells - «The story of the broken seals» - Large shallow targets • Extended partnership with TGS - Proving the value of integrating the seismic and EM dataset - TGS increase numbe
Slide 12: Vessel Schedule
VESSEL SCHEDULE Expected vessel schedule as of 5 February 2014 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Mala- BOA Thalassa ysia Norway Norway Norway BOA Galatea Mexico Mexico Atlantic Guardian Mexico Mexico Canada EM Leader Equatorial margin Angola US GoM (C
Slide 13: Market Update
MARKET UPDATE Order book (USD Million) Contract coverage 140 • Contract for Apache in Australia • Two vessels operating for Pemex 120 Multi-client sales 113 100 • Sales to North Energy in Q1 • Developed opportunities in Norway, US GoM and 15 Canada 80 79 Contract opportunities 60 • Contract negotiat
Slide 14: Summary and Outlook
SUMMARY AND OUTLOOK Summary • Two vessels working for Pemex • Positive development in the Barents Sea - Extended cooperation with TGS - Strategic agreement with North Energy • Solid financial position Outlook • Good contract coverage for 1H14 • Exciting investment opportunities • Full year 2014 reve
Slide 15: Save the date – Q1 results and capital markets day
aw emgs
Slide 16: Welcome back – Q1 results and capital markets day
Welcome back – Q1 2013 results 8 May 2014 Save the date – capital markets day 26 March 2014
Slide 17: Appendix
APPENDIX aw emgs
Slide 18: Vessel Charters and Yard Stays
VESSEL CHARTERS AND YARD STAYS BOA Thalassa BOA Galatea Atlantic Guardian EM Leader EM Express Firm Charter December 2015 July 2015 1 March 2016 Standby in Las Standby in Bergen Palmas at no cost to EMGS. (charter until 3 December 2013) Options 1 x 1 year 2 x 1 year 3 x 1 year Optional 1-, 3-, 6- or
Slide 19: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT USD million QUARTER ENDING YEAR ENDING 31.12.2013 31.12.2012 31.12.2013 31.12.2012 Contract sales 40.1 34.6 111.3 176.1 Multi-client sales 4.8 10.4 33.3 24.7 Total revenues 44.9 45.0 144.6 200.8 Charter hire, fuel and crew expenses 20.3 12.7 51.2 68.8 Employee expenses
Slide 20: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION USD million YEAR ENDING 31.12.2013 31.12.2012 ASSETS Goodwill 14.4 14.4 Multi-client library 28.1 14.1 Intangible assets 3.4 4.9 Property, plant and equipment 27.7 32.3 Assets under construction 19.2 10.9 Total non-current assets 92.8 76.6 Trade receivabl
Slide 21: Consolidated Statement of Cash Flow
CONSOLIDATED STATEMENT OF CASH FLOW USD million YEAR ENDING 31.12.2013 31.12.2012 Net cash flow from operating activities 57.6 28.7 Net cash flow from investing activities (51.1) (42.8) Net cash flow from financial activities 9.5 (4.5) Net increase in cash 16.0 (18.5)
Slide 22: Largest Shareholders (as of 5 February)
LARGEST SHAREHOLDERS (AS OF 5 FEBRUARY) SHAREHOLDER SHARES HOLDING 1 FIDELITY FUNDS 11 505 317 5.76 % 2 MORGAN STANLEY & CO S/A MSCO CLIENT EQUI 10 574 938 5.29 % 3 SKAGEN GLOBAL 10 124 112 5.07 % 4 ODIN OFFSHORE 8 473 631 4.24 % 5 ODIN NORGE 7 838 224 3.92 % 6 VERDIPAPIRFONDET DNB 7 700 000 3.86 %
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