Fjord Defence Group Asa · OSL:DFENS
Fjord Defence Group Asa — Axxis Geo Solutions — Q2 2020 Earnings Presentation
21 slides from Fjord Defence Group Asa's earnings presentation, Aug 19, 2020
Slide 1: Second quarter 2020
Second quarter 2020 Axxis Geo Solutions Ronny Bøhn, CEO and Nils Haugestad, CFO 19 August 2020
Slide 2: Disclaimer
Disclaimer • The information in this presentation has been prepared by Axxis Geo Solutions ASA (“AGS” or the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presenta
Slide 3: Agenda
Agenda 1. Highlights and outlook 2. Financials and restructuring 3. Proven business model 4. Summary
Slide 4: Q2 highlights
Q2 highlights ▪ AGS completed OBN survey in the Middle East and commenced related streamer operation ▪ We started North Sea contract for Equinor and received survey extension ▪ New CFO was appointed Subsequent events ▪ Appointment of new CEO ▪ Closed the restructuring with converting USD 34.2 millio
Slide 5: Q2 highlights – Egypt
Q2 highlights – Egypt ▪ Program part executed as contract survey and Nodal deployment in the Suez Canal feeder lanes part as multi-client survey − Contract survey completed during the quarter; multi- client survey completed in July − Multi-client survey as partner share, capped at USD 13.7 million i
Slide 6: Q2 highlights – North Sea
Q2 highlights – North Sea ▪ Commenced OBN survey over Breidablikk field Infrastructure close pass – Neptune naiad − On-time start in the North Sea − Extension of initial work scope over Frigg field − Survey completed in July ▪ Solid HSE performance continued − Zero recordables − Covid-free operation
Slide 7: Flexible cost structure to address market cycles
Asset light and node agnostic business model Flexible cost structure to address market cycles Illustrative cost cycles Technology-agnostic system for attaching nodes on a rope AGS – asset light Project period Project period Any node – any vessel Cost Crew and OPEX Vessel and node cost Smart-stack; c
Slide 8: Improving tender activity and project pipeline for 2021
Tender and pipeline overview Improving tender activity and project pipeline for 2021 Select OBN survey activity Summary observations 2020 2021 Timeline Q2 Q3 Q4 Q1 Q2 Q3 Q4 ▪ Resent increase in tender activity for Q4 2020/Q1 2021 1 Egypt 1 1 Awarded North Sea 1 1 ▪ Expecting North Sea activity to pi
Slide 9: Agenda
Agenda 1. Highlights and outlook 2. Financials and restructuring 3. Proven business model 4. Summary
Slide 10: Second quarter segment financial review
Second quarter segment financial review Second quarter segment P&L ▪ Revenues mainly driven by the project in Egypt of USD In USD million 4.8 million and in the North Sea of USD 7.9 million ▪ During the quarter, the Company commenced multi-client project in Egypt ▪ EBITDA of USD 2.3 million, represe
Slide 11: YTD segment financial review
YTD segment financial review YTD segment P&L ▪ Revenues mainly driven by the project in Egypt of USD In USD million 47.2 million, the North Sea of USD 7.9 million and the Brazil campaign USD 2.4 million ▪ EBITDA of USD 15.7 million, representing an EBITDA- margin of 27% ▪ EBIT of USD 12.3 million, r
Slide 12: Financials segment overview
Financials segment overview In USD million In USD million Revenue EBITDA and EBIT Sequential performance 50 46 20 17 15 ▪ Segment revenue derives from 45 13 11 both contract and multi-client 41 8 10 40 activity 2 1 35 0 0 ▪ High level of fluctuation quarter 30 -10 -6 by quarter 25 20 -20 15 11 13 -3
Slide 13: Segment financial position – pre financial restructuring
Segment financial position – pre financial restructuring 30 June 2020 USD millions 13 PP&E = Vessels, equipment and maintenance
Slide 14: Financial restructuring
Financial restructuring ▪ Conversion of USD 9.5 million of accounts payable into unsecured loan agreements − Interest rate of 4% per annum − Amortization schedule implying repayment by January 2022 − USD 1.4 million and USD 1.7 million amortization in Q3 and Q4 2020, respectively − USD 1.6 million a
Slide 15: Pro forma balance sheet after the restructuring
Pro forma balance sheet after the restructuring USD thous a nds Pro forma 30.06.2020 Before after all conversion of Adjustment conversion of Interest bearing debt and unsecured unsecured As reported Adjustment the trade payables loan loans 30.06.2020 bond loan restructuring Interest bearing debt - 3
Slide 16: Agenda
Agenda 1. Highlights and outlook 2. Financials and restructuring 3. Proven business model 4. Summary
Slide 17: Three major surveys executed
Successfully proven model Three major surveys executed Norway – Utsira India – Mumbai High area Eqypt – Gulf of Suez ▪ Largest ever North Sea OBN survey, at ▪ Successfully completed 1,215 km2 FF ▪ OBN survey for WesternGeco in Egypt, ~1,600 km2 originally OBN project for ONGC over the Gulf of Suez M
Slide 18: Already proven metrics superior to competitors
Successfully proven model Already proven metrics superior to competitors AGS focus on continuous improvements on deployment and retrieval… …leading to faster delivery and lower km2 cost Knots OBS PEER PERFORMANCE Deploy and Retrieve average1 AGS has achieved close to 50% organic productivity 2,0 inc
Slide 19: Agenda
Agenda 1. Highlights and outlook 2. Financials and restructuring 3. Proven business model 4. Summary
Slide 20: Summary
Summary Completed financial restructuring: Trade payables reduced considerably and are now at customary run-rate trade creditor levels Solid H1 2020 performance: Solid operations in Egypt and Norway in spite of COVID- 19 Multi-client library: Commenced new project in Gulf of Suez; attractive sales p
Slide 21: US Office / Norway Office
US Office Norway Office 14511 Old Katy Road Strandveien 50 Suite 150 1366 Lysaker Houston, TX 77079 Norway United States +47 480 95 555 +1 281 810 2550 21