Sed Energy Holdings Plc · OSL:ENH
Sed Energy — SeaBird Exploration — Debt Investor Presentation (January 2015)
29 slides from Sed Energy's debt investor presentation, Jan 30, 2015
Slide 1: SeaBird Exploration Restructuring presentation
SeaBird Exploration Restructuring presentation 30 January 2015
Slide 2: Important information
Important information This Presentation has been produced by SeaBird Exploration Plc (the “Company” or “Seabird”) with assistance from ABG Sundal Collier Norge ASA, RS Platou Markets AS and Fearnley Securities (the “Managers”) solely for use at the presentation to investors held in connection with t
Slide 3: Table of contents
Table of contents I. Transaction overview II. Restructured SeaBird III. Appendix 3
Slide 4: I Transaction overview
I Transaction overview
Slide 5: Investment highlights
Investment highlights 1 • Outstanding SBX03 bond and Perestroika CL treated equal in conversion 20% to Bond and 80% to equity - converted to equity at NOK 0.3/share Improved capital • Charter hire and bunker payables partially written off, and converted to debt and equity structure • New equity issu
Slide 6: Restructuring background and actions
Restructuring background and actions 1 SeaBird in • SeaBird is in financial distress due to a challenging seismic market financial distress • Shortfall of revenues in 3Q14 and 4Q14e 2 Challenging • Current debt levels too high capital structure • Interest bearing debt above USD 100m too high in trou
Slide 7: The main components in the restructuring
The main components in the restructuring • SBX03 bondholders partly converted to equity and Equity USD 64.7m SBX04 bond SBX03 USD 80.9m SBX04 USD 16.2m • Perestroika convertible loan of $14.9m treated equally Equity as SBX03 USD 11.9m Perestroika CL USD 14.9m SBX04 • Charter hire reductions contribu
Slide 8: Total transaction overview
Total transaction overview NOK/USD: 7.60 Debt conversion price: 0.30 NOK New Equity – issue price: 0.10 NOK Ownership post Instruments Post coversion Ownership warrants Credit facility, SBX04 SBX04 pari passu with Unsecured credit EQ value @ Shares Shares Thousand USD Par Value (tranche A) (tranche
Slide 9: Transaction terms and timeline
Transaction terms and timeline Offering details Timetable and Key Terms • Transaction: • Application period: – Private placement of NOK equivalent of USD 8.5 - 12 million – January 29, 2015 09:00 CET – February 2, 2015 16:30 CET • Number of new shares: 646,000,000 - 912,000,000 • Notification of all
Slide 10: Sources and uses & equitization
Sources and uses & equitization Sources of funds Uses of funds Sources of funds USDm Uses of funds USDm New Bond issue 29.3 General corporate purposes 10.7-14.2 Tranche A (new money) 5.0 Debt, Payables & Fees converted to SBX04 24.3 Tranche B (conversion of debt) 24.3 Payables converted to new credi
Slide 11: Interest bearing debt significantly reduced
Interest bearing debt significantly reduced Pre transaction debt level Post transaction debt level 6.1 101.9 62.9 14.9 80.9 USDm 39.0 29.3 2.4 2.1 5.1 SBX03 Perestroika Hawk Lease Total IB debt Debt reduction Total IB debt SBX04 Sec. Credit Unsec. credit Hawk Lease pre transaction post facility faci
Slide 12: Trade payables significantly reduced
Trade payables significantly reduced Trade payables pre(1) and post transaction 22.0 39.7 26.3 - USD 17m in conversion and write-offs USDm - USD 10.7-14.2m from new money used to decrease trade payables over a period of time 5.9 (2) 13.4 1.2 12.0 11.8 0.1 Charter hire Bunker payables Other trade Tot
Slide 13: Backlog
Backlog Firm contracts Backlog Vessel Expected Expected Amount (USDm) Vessel Client/Project months start-up completion (USD millions) Up to 6 vessels TGS Nopec - Mexico / US East 40 Q1 2015 88 300 coast (MIN program) 273 270 Aquila Explorer Australasia 4 ongoing Mar-15 12 1 vessel North South Americ
Slide 14: Estimated P&L
Estimated P&L INCOME STATEMENT All figures in USD millions Q1 2015e Q2 2015e Q3 2015e Q4 2015e 2015e 2016e Contract revenue 27.2 37.4 39.7 37.7 142.1 141.8 MC revenue 2.0 2.0 2.0 2.0 8.0 16.5 Total revenue 29.2 39.4 41.7 39.7 150.1 158.3 Cost of sales (24.9) (25.3) (25.5) (24.0) (99.8) (84.6) Cost s
Slide 15: Possible vessel allocation 2015-2016
Possible vessel allocation 2015-2016 Vessel 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Aquila Explorer APAC APAC APAC Northern Explorer EAM E NSA NSA NSA Mediterranean Harrier Explorer Source APAC TGS Mexico TGS US East C oast Munin Explorer Seabed Seabed TGS Mexico TGS Mexico TGS US East C
Slide 16: II Restructured SeaBird
II Restructured SeaBird
Slide 17: Company vision and aspiration
Company vision and aspiration The most reliable and productive service provider in focus areas, based on low cost operations, experienced crews and unparalleled technology expertise in target segments • Global market leader in our principal sectors for the oil and gas industry and multi-client compa
Slide 18: Strategy
Strategy Three-year plan 1. Continued focus on core operating segments Remain market leader and most productive service provider by continued improvement of marine and seismic operations 2. Renew fleet to maintain global reach and critical mass Fleet renewal through lease of vessels 3. Improve c
Slide 19: 1. Focus on core markets
1. Focus on core markets • Key markets 2D and source Niche 3D; shallow water, complex and smaller survey areas • Preferred service provider for oil and gas industry Only focused 2D service provider pre-approved by oil majors Recognized HSSEQ system assures safety and quality • Continued mark
Slide 20: 2. Critical mass with renewed fleet
2. Critical mass with renewed fleet Global reach and critical mass • Maintain requisite fleet size to uphold market-leading position Optimal fleet size of 7-10 vessels • Global reach essential to efficiently serve customers in all markets • Ability to provide assured vessel access is a market diff
Slide 21: 3. Restructure to improve efficiency and reduce costs
3. Restructure to improve efficiency and reduce costs Restructuring of onshore activities • Consolidate offices to improve efficiency and cost structure – “One company” with primary functions in Oslo • Removing costly expat set-up in Dubai • Reduce onshore headcount and streamline operating function
Slide 22: 4. Multi-client; market stabilizer
4. Multi-client; market stabilizer • Multi-client is a natural extension of existing business profile Stabilize fluctuations in contract market; optimize vessel utilization Capitalize on attractive investment opportunities • Provides significant new expansion platform Multi-client operations t
Slide 23: 5. Technology; taking 2D to the next level
5. Technology; taking 2D to the next level Development of new 2D acquisition technology improves productivity and creates competitive advantage 23
Slide 24: 6. Capital structure considerations
6. Capital structure considerations • Need to solidify balance sheet to execute on strategic plan Working capital access required to address cyclicality and growth Flexibility for equipment financing Balance sheet improvement reduces counterparty risk; key to fleet renewal and vendor agreement
Slide 25: III Appendix
III Appendix
Slide 26: Key terms - Senior Secured Bond
Key terms - Senior Secured Bond Issuer: SeaBird Exploration Finance Limited Guarantors: All subsidiaries with some carve-outs. See term sheet for further information USD 29.3 million Tranche A: USD 5.0 million Amount: Tranche B: USD 24.3 million Scandinavian Bunkering: There will be a credit f
Slide 27: Legal entities
Legal entities SeaBird Exploration PLC Crewing company Management and Operating companies Vessel companies SeaBird Exploration Asia Baruka Management Ltd SeaBird Exploration Norway AS Aquila Explorer Inc Pacific PTE Ltd SeaBird Exploration Biliria Marine Company Ltd SeaBird Exploration FZ LLC (Geo P
Slide 28: Estimated Balance sheet
Estimated Balance sheet BALANCE SHEET All figures in USD millions Q4 2014e Q1 2015e Q2 2015e Q3 2015e Q4 2015e 2015e 2016e ASSETS Non current assets Property, plant and equipment 106.7 103.2 100.7 98.8 98.2 98.2 94.2 MultiClient Investment 20.5 19.1 17.7 16.3 14.9 14.9 21.2 Long term investments 0.1
Slide 29: Estimated Cash flow statement
Estimated Cash flow statement CASH FLOW STATEMENT All figures in USD millions Q1 2015e Q2 2015e Q3 2015e Q4 2015e 2015e 2016e Cash flow generated by/(used for) operations Net profit/ (loss) (5.9) 2.3 4.6 4.4 5.4 28.5 Depreciation, amortization and impairment 7.3 7.4 7.6 7.8 30.1 32.2 Interest expens
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