11 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 18, 2010
Slide 1: EMGS ASA – Third Quarter Presentation 2010
EMGS ASA – THIRD QUARTER PRESENTATION 2010 CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 18 November 2010 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 actu
Slide 2: Highlights
HIGHLIGHTS Financial results in line with expectations • Revenues of USD 22.8 million • EBITDA of USD 6.5 million High operational activity • Vessel utilisation and backlog at all-time high • Three vessels in operation • PEMEX contract well underway Market fundamentals improving • Multiple contract
Slide 3: Financial Highlights Q3 / Operational Costs
FINANCIAL HIGHLIGHTS Q3 Revenues up 48 percent YoY* Revenues (USD Million) • USD 22.8 million 35 • Contract sales at USD 18.2 million 30 25 • Multi-client sales at USD 4.6 million 20 15 EBITDA back in black 10 • USD 6.5 million 5 0 • Adjusted EBITDA at USD 3.1 million Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 V
Slide 4: Capital Structure / Multi-client: A Viable Business Model
CAPITAL STRUCTURE Assets (USD million) Equity and liabilities (USD million) 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 30.09.2009 30.09.2010 30.09.2009 30.09.2010 Shareholders equity Liabilities Cash Current assets other than cash Non-current assets Convertible loans Interest bearing debt M
Slide 5: Update on Contract with PEMEX
OPERATIONAL OVERVIEW UPDATE ON CONTRACT WITH PEMEX Large long-term contract • USD 150 million • Through 2012 Work progress • Office opened in Villahermosa • Data acquisition off to a good start • Operational challenges in ultra deep-waters Revenues in Q3 • Revenues from PEMEX contract in Q3’10 of US
Slide 6: Vessel Activity & Backlog / What Has Driven Increased Demand?
VESSEL ACTIVITY & BACKLOG Q3 2010 Q4 2010 Q1 2011 Q2 2011 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun BOA Thalassa • Barents Sea, Norway • In transit • Mexico, PEMEX BOA Galatea • Malaysia • Off-hire/maintenance • Malaysia • Brunei, Shell • Philippines, Shell • Australia, Woodside • Contract neg
Slide 7: Customer Adoption – A Value Proposition Case
CUSTOMER ADOPTION – A VALUE PROPOSITION CASE VOI (mUSD) “…conservative estimates of the economical value of CSEM data can be more than 10 times above the typical costs for a CSEM survey and analysis." Arild Buland NPV (mUSD) et al, (Statoil), EAGE 2010 Prior chance of success SUMMARY AND OUTLOOK
Slide 8: Summary and Outlook
SUMMARY Financial results in line with expectations Successful mobilisation and start of PEMEX contract Barents 2010 campaign completed Contract backlog at all-time high Competitive landscape changing – favourable to EMGS Recent contract awards confirm strengthening of market demand OUTLOOK Revenue
Slide 9: Q&A / Appendix
Q&A muemgs APPENDIX muemgs
Slide 10: Consolidated Income Statement / Balance Sheet
CONSOLIDATED INCOME STATEMENT USD million THREE MONTHS ENDING NINE MONTHS ENDING 30.09.2010 30.09.2009 30.09.2010 30.09.2009 Revenues 22.8 15.3 48.2 52.0 Charter hire, fuel and crew expenses 5.2 17.6 17.9 41.8 Employee expenses 7.4 6.3 20.6 21.7 Other operating expenses 3.7 2.9 9.6 9.5 EBITDA 6.5 (1
Slide 11: Consolidated Cash Flow / Largest Shareholders
CONSOLIDATED STATEMENT OF CASH FLOW USD million NINE MONTHS ENDING 30.09.2010 30.09.2009 Net cash flow from operating activities (34.2) (20.6) Net cash flow from investing activities (12.4) (7.4) Net cash flow from financial activities 46.2 23.2 Net increase in cash (0.5) (4.7) LARGEST SHAREHOLDERS