Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q4 2015 Earnings Presentation
20 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 11, 2016
Slide 1: Fourth Quarter 2015 Results
FOURTH QUARTER 2015 RESULTS. Oslo, 11 February 2016 CEO Christiaan Vermeijden, CFO Hege A. Veiseth
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: Fourth quarter 2015 highlights
Fourth quarter 2015 highlights • Completion of contract extension in Malaysia worth USD 7 million • New contract signed in India USD 15 million • Proof Of Concept study completed in Mexico • Cost reduction measures ongoing • Financial restructuring completed • New management - New CEO and CFO appoin
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Fourth quarter key financials
Fourth quarter key financials • Revenues of USD 20.5 million Revenues • Operational costs of USD 28.5 million, affected by 60 50 ~USD 5.4 million in special items 40 30 • Impairment of multi-client library of USD 8.6 million 20 11.5 10 • Down from 4 to 3 vessels in Q4, with low utilisation (21%) 0 9
Slide 6: Cost reduction program progressing as planned
Cost reduction program progressing as planned Implications on operational cost base – USD million Comments 180 • Cost reducing measures implemented to bring cost base in line with expected activity level, with key 160 25 elements 140 10 2 – Freeze on new hires, consultants and agents 120 – Reduction
Slide 7: Improved financial position following the equity issue
Improved financial position following the equity issue Operational • Financial restructuring provides EMGS with improved financial flexibility to weather the current downturn Financial • New equity of USD 32 million, of which • USD 8 million used for partial bond buy-back @ 80% of par, yielding a fi
Slide 8: Change in multi-client amortisation due to amendment to IAS 38
Change in multi-client amortisation due to amendment to IAS 38 • Amendment to IAS 38, effective from 1 January 2016 • Revenue-based method of amortisation of intangible assets is not considered appropriate • EMGS has changed its principle and aligned to the method used by the seismic companies: - Du
Slide 9: Market and outlook
aw emegs Market and outlook Spot the difference.
Slide 10: Fourth quarter vessel operations
Fourth quarter vessel operations BOA Galatea Atlantic Guardian Contract work and Proof of Concept study in Mexico Idle from 2 October 2015 BOA Thalassa EM Leader Contract in Malaysia Q415 Laid up from 15 May 2015 10
Slide 11: Current market situation
Current market situation Order book Multi-client key figures by vintage 50 Sales Revenue share Investment Cash Contribution NBV 45 80 80,0 40 Amounts in USD'(millions) 35 70 70,0 30 60 60,0 25 50 50,0 20 40 40,0 15 30 30,0 10 21 20 20,0 5 10 10,0 0 0 0,0 1 Jan '15 1 Apr '15 1 Jul '15 1 Oct '15 1 Jan
Slide 12: Multi-client opportunities
Multi-client opportunities Norway: • Plan to start new MC campaign in March • Annual APA round, close September - Awards for 2016 was announced in January - EM included in work programs/ feasibilty studies - Sales related to APA expected in 2H16 • 23rd licensing round - Awards for 2016 expected in J
Slide 13: Summary and outlook
Summary and outlook • Cost level reduced to be in line with expected activity • Financial restructuring completed • Market outlook challenging, characterised by high uncertainty • Interest in EM technology healthy, challenged by reduced budgets • EMGS expects to operate two vessels in 2016, with an
Slide 14: Long term story remains intact
Long term story remains intact EMGS is the market leader in an attractive niche market, offering services highly complementary to traditional geophysical methods E&P companies are showing increased interest in EMGS’ technology, although current exploration spending is reduced from previous level
Slide 15: Questions?
aw emegs Questions? Spot the difference.
Slide 16: Appendix
SPOT THE DIFFERENCE. ppendix Spot the difference.
Slide 17: Income statement
Income statement Q4 2015 Q4 2014 2015 2014 (USD 1 000) Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 9 001 25 477 45 008 137 222 Multi-client pre-funding - 5 152 3 546 13 140 Multi-client late sales 11 498 21 884 32 586 47 661 Total revenues 20 499 52 513 81 140 198 023 Ope
Slide 18: Financial position
Financial position 31 December 31 December 31 December 31 December (USD 1 000) 2015 2014 2015 2014 (USD 1 000) Unaudited Audited Unaudited Audited ASSETS EQUITY Non-current assets Capital and reserves attributable to equity holders Goodwill - 14 422 Share capital, share premium and other paid-in equ
Slide 19: Largest shareholders as of 8 February
Largest shareholders as of 8 February Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 313,769,927 23.92 2 PERESTROIKA AS 279,754,256 21.33 3 MORGAN STANLEY & CO. LLC 180,317,908 13.75 4 ODIN ENERGI 66,876,622 5.10 5 ODIN NORGE 53,307,963 4.06 6 STATOIL PENSJON 30,000,098 2.29 7 BÆKKELAGET HOLDING
Slide 20: Vessel charters
Vessel charters BOA Thalassa BOA Galatea Atlantic Guardian EM Leader Delivered back to vessel Firm Charter 1 April 2017 18 December 2017 8 December 2016 owner in mid-January Current status In operation, Asia Idle Laid up Vessel owner BOA Offshore BOA Offshore North Sea Shipping Seatrans Flexible rat
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