Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2018 Earnings Presentation
19 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 1, 2018
Slide 1: Q3 2018 Results
Q3 2018 RESULTS Oslo, 1 November 2018 Christiaan Vermeijden, CEO Hege Veiseth, CFO
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: Q3 2018 Highlights
Q3 2018 Highlights Operations • Expanded the library in Norway • Mobilised for a (up to) USD 8 million contract in South America Financials • Revenues of USD 6.0 million (USD 7.9 million in Q2) • EBITDA of neg. USD 4.0 million (neg. USD 0.8 million in Q2) Market • Positioned to capitalise on the 24t
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Third quarter performance
Third quarter performance Key financial metrics Quarterly development (USD million) • Revenues 12 Revenues 10 • USD 6.0 million 8 6 11 11 • New revenue recognition standard 4 8 6 implemented in 2018 2 4 0 • Vessel utilisation of 29% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Contact sales Multi-client revenues •
Slide 6: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q3 18 of USD 11.9 million 1.9 10 - Higher than Q3 2017 as Thalassa was off-hire in Q3 1.3 last year 4.7 - Higher than Q2 2018 as a result of holiday pay in Q2 5 • Cost control 3.9 - C
Slide 7: Decrease in free cash in Q3
Decrease in free cash in Q3 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 5.9 million to USD 9.5 million • Trade receivables decreased by USD 7.9 million to USD 2.5 million • USD 0.7 million in interest-payments on interest bearing debt • Total investments
Slide 8: Multi-client book value of USD 14.9 million
Multi-client book value of USD 14.9 million Multi-client library – NBV (USD million) Comments • Decrease in book value from USD 16.8 million 20 previous quarter to USD 14.9 million in Q3 2018 15 • Investments of USD 1.9 million in MC data • North Sea and Norwegian Sea 10 • Amortisation of USD 3.9 mi
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • A proprietary data acquisition program in South 8 America will keep the Atlantic Guardian busy through 7 Q4 2018 6 • Well positioned to capitalise on the 24th round in Norway with Production Licenses
Slide 11: Are there more CSEM anomalies hiding here?
Are there more CSEM anomalies hiding here? 11
Slide 12: Hardware, Imaging & Interpretation improvements
Hardware, Imaging & Interpretation improvements Exploration Solution Rock physics Value 3D sensitivity scanning modeling proposition Well log tool Prospect evaluation 3D Gauss-Newton 3D TTI anisotropy Up-down separation Updated regularization Deep Blue More powerful BFGS source model update JIP sea-
Slide 13: Grane: Revisiting 2003 data
Grane: Revisiting 2003 data 2003 MVO Plot Interpretation Method 2018 Imaging and well correlation Represents CSEM Data and the «bump» between the purple lines is the EM Inverted 2003 CSEM data. High temperature color represent CSEM anomalies matching Grane field anomaly over the Grane field outline
Slide 14: Cara discovery clearly imaged on data acquired with Deep Blue
Cara discovery clearly imaged on data acquired with Deep Blue Expected sensitivity to Cara: Conventional Source Expected areal range Expected sensitivity to Cara: Deep Blue Expected areal range W E 14
Slide 15: Q3 2018 Highlights
Q3 2018 Highlights Operations • Expanded the library in Norway • Mobilised for a (up to) USD 8 million contract in South America Financials • Revenues of USD 6.0 million (USD 7.9 million in Q2) • EBITDA of neg. USD 4.0 million (neg. USD 0.8 million in Q2) Market • Positioned to capitalise on the 24t
Slide 16: Questions?
aw emegs Questions? Spot the difference.
Slide 17: Consolidated Income Statement
Consolidated Income Statement Year to date Year to date Q3 2018 Q3 2017 2018 2017 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Unaudited Unaudited Restated* Restated* Restated* Operating revenues Contract sales 568 443 880 1,619 2,583 Multi-client pre-funding 3,768 5,933 6,308 8,999 11,2
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 30 September 2018 30 September 2017 31 December 2017 30 September 2018 30 September 2017 31 December 2017 Amounts in USD 1 000 Unaudited Unaudited Unaudited Amounts in USD 1 000 Unaudited Unaudited Unaudited Restated* Restated* Restated* Restated* ASSETS
Slide 19: Largest shareholders as of 31 October 2018
Largest shareholders as of 31 October 2018 # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 31 327 467 23.92 2 PERESTROIKA AS 29 452 795 22.49 3 MORGAN STANLEY & CO. MS & CO LLC 25 891 805 19.77 4 BÆKKELAGET HOLDING AS 5 010 000 3.83 5 SPORTSMAGASINET AS 4 329 090 3.31 6 ROSENFONN INVEST AS 2 14
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