Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2019 Earnings Presentation
16 slides from Electromagnetic Geoservices Asa's earnings presentation, May 9, 2019
Slide 1: Company Update and Q1 2019 Results
COMPANY UPDATE AND Q1 2019 RESULTS Oslo, 9 May 2019 Bjørn Petter Lindhom, 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: Operations, Market and Outlook
Operations, Market and Outlook
Slide 4: Strong start for 2019
Strong start for 2019 • Strong 2019 sales with substantial contracts and traction in all major regions: • USD 2 million APA (Norway) uplifts • USD 8 million multi-client agreement with Equinor (Norway) • USD 3.4 million fully pre-funded multi-client survey in the Barents Sea (Norway) • USD 24 millio
Slide 5: Well positioned to capitalise on market recovery
Well positioned to capitalise on market recovery • Significantly reduced fixed cost base • Through the downturn EMGS has: • Retained key technical competences: Motivated, dynamic and innovative work force • Kept the global presence intact • Invested significantly in the JIP project to develop the De
Slide 6: Key developments and EM market trends
Key developments and EM market trends • Large proprietary contracts: EMGS awarded 4th Largest EM Contracts and 8th largest EM contracts ever; USD 73 million 250 (LOA) and USD 24 million, respectively • Clients investing in EM knowledge: Two well 200 calibration studies on-going, third well calibrati
Slide 7: Significant increase in order backlog
Significant increase in order backlog Comments Order backlog • Order backlog at USD 26 million at end of Q1 2019 Order backlog (USD million) 120 • Subsequently further increased to approx. USD 100 100 million 80 60 • 2019 has been characterised by increased tender and 100 40 direct negotiation activ
Slide 8: EMGS returning to Mexico to work for Pemex
EMGS returning to Mexico to work for Pemex • Contract value under LOA of USD 73.3 million over a two year-period, with a minimum value of USD 29.3 million • EMGS has worked for PEMEX on 3 major contracts since 2008 • Work program includes acquisition, processing and inversion services • Well positio
Slide 9: Vessel update
Vessel update • EMGS exercised the first of three six-months option periods for the BOA Thalassa. • BOA Thalassa on firm charter until end Q1 2020 • The Company expects to operate two vessels in 2019 • Atlantic Guardian in Gulf of Mexico • BOA Thalassa in Southeast Asia • The Company is developing a
Slide 10: Q1 2019 Highlights
Q1 2019 Highlights Operational highlights • Proprietary contract in South America completed • Commencement of a proprietary survey in South-East Asia • USD 8.0 million multi-client agreement signed with Equinor Financial highlights • Revenues of USD 10.8 million • EBITDA of USD 2.6 million • Adjuste
Slide 11: Financial review
awemegs Spot the difference.
Slide 12: First quarter 2019 performance
First quarter 2019 performance Key financial metrics Quarterly development (USD million) • Revenues Revenues 15 • USD 10.8 million 10 13 • Mainly proprietary work in South America and multi- 11 client revenues in Norway 5 8 6 4 0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 • Vessel utilisation of 11% Contact sale
Slide 13: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q1 19 of USD 12.0 million 2.4 • Comparable to Q1 last year 10 3.8 5 1.0 • Cost control • Strong focus on cost optimisation 4.7 0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Capitalised multi-client
Slide 14: Increase in free cash in Q1 2019
Increase in free cash in Q1 2019 Quarterly free cash development (USD million) Comments • Net increase in free cash of USD 3.1 million to USD 9.6 million • Negative adjusted EBITDA of USD 1.2 million • Trade receivables decreased by USD 2.5 million to USD 2.2 million • USD 0.7 million in interest-pa
Slide 15: Summary, Q&A
Summary, Q&A awemegs Spot the difference.
Slide 16: Summary
Summary • Strong 2019 sales with substantial contracts and traction in all major regions • Total backlog to date of approx. USD 100 million • Well positioned to capitalise on market recovery 16
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