Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2017 Earnings Presentation
20 slides from Electromagnetic Geoservices Asa's earnings presentation, May 11, 2017
Slide 1: First Quarter 2017 Results
FIRST QUARTER 2017 RESULTS. Oslo, 11 May 2017 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: Refinancing announced, slight improvement of backlog, caution still required
Refinancing announced, slight improvement of backlog, caution still required Operations • Completed contract work in Malaysia • Continued multi-client investments in the Barents Sea • Investments in the Advanced EM System (JIP) ongoing Financials • Revenues of USD 3.9 million • EBITDA of negative US
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: First quarter performance | Reduction in revenues and EBITDA
First quarter performance | Reduction in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues 20 Revenues • Multi-client revenues in Norway of USD 3.2 15 million 10 4.017 12 15 14.7 14.7 13 • Vessel utilisation of 92% of one vessel 5 13 13 4.061 4 3.22 4 0 • Multi
Slide 6: Reduced operational costs
Reduced operational costs Quarterly operational cost base development* (USD million) Comments 30 • Operational costs base of USD 12.0 million 25 - Capitalised multi-client expenses of USD 1.0 million 20 - Reversal provision for onerous contract of USD 1.4 million 15 1 • Cost control 10 2 - Cost cont
Slide 7: Small decrease in free cash in Q1
Small decrease in free cash in Q1 Quarterly free cash development (USD million) Comments 18 • Small net decrease in free cash of USD 1.0 16 million to USD 13.0 million 14 • Financing activities 12 • Credit (USD 10 million) and guarantee (USD 10 10 million) facilities made available, USD 3 million Ca
Slide 8: Rights issue tentative timeline
Rights issue tentative timeline Month March April May June July Activity Announcement of deal 22. March AGM approved reduction in par value of the shares and 25. April the rights issue Creditor warning period 26. April – 7. June EMGS shares trade ex-rights to receive subscription rights 20. June Sub
Slide 9: Multi-client book value of USD 21.6 million
Multi-client book value of USD 21.6 million Overview of book value of multi-client library (USD million) Comments 16 • Reduction of book value from USD 24.3 million 14 13.5 previous quarter to USD 21.6 million 12 • Uplift/late sales revenues of USD 2.4 million 10 • Prefunding revenues of USD 0.8 mil
Slide 10: Operations, Market and Outlook
Operations, Market and Outlook
Slide 11: First quarter vessel operations
First quarter vessel operations BOA Thalassa Atlantic Guardian Completed proprietary survey, offshore In operation, MC Projects in the Barents Q1 activity Malaysia on 1 January Sea, Norway Vessel owner BOA SBL North Sea Shipping Firm Charter 1 October 2019 1 October 2021 Improved terms, fixed, with
Slide 12: Update on Norway's 24th Licensing Round
Update on Norway’s 24th Licensing Round • Several CSEM supported wells in the Barents Sea to be drilled in 2017 (Blåmann, Kayak, Koigen, Gemini North, etc) • 93 blocks nominated in the Barents Sea during Q1 2017. Multi-client library data covered 36 nominated blocks, in addition 11 blocks prefunded/
Slide 13: Advanced EM System (JIP) update
Advanced EM System (JIP) update • Prototype testing successfully executed during the summer of 2016 on the Norwegian Continental Shelf • Test results reviewed during Q3/Q4 2016 and original objectives met • Commercialisation discussions ongoing 13
Slide 14: Selection of current opportunities
Selection of current opportunities Norway: • Coverage in the Barents Sea expanded in Q1 2017 in anticipation of the nominations and announcements Canada: during the 24th licensing round • MC data covering Flemish Pass basin available for sale • Prefunding received for work outside of the 24th round
Slide 15: Market update | Still limited visibility
Market update | Still limited visibility Comments Order backlog - limited earnings visibility • Work awarded (prefunding) in Q1 2017 will keep the 50 Guardian busy through the end of Q2 2017 45 • Prospects being developed to put Thalassa back at 40 work before the commencement of the firm charter 35
Slide 16: Refinancing announced, slight improvement of backlog, caution still required
Refinancing announced, slight improvement of backlog, caution still required Operations • Completed contract work in Malaysia • Continued multi-client investments in the Barents Sea • Investments in the Advanced EM System (JIP) ongoing Financials • Revenues of USD 3.9 million • EBITDA of negative US
Slide 17: Questions?
aw emegs Questions? Spot the difference.
Slide 18: Consolidated Income Statement
Consolidated Income Statement Q1 2017 Q1 2016 2016 Amounts in USD 1 000 Unaudited Unaudited Audited Operating revenues Contract sales 701 13,037 21,797 Multi-client pre-funding 830 0 579 Multi-client late sales 2,386 0 22,151 Total revenues 3,918 13,037 44,527 Operating expenses Charter hire, fuel a
Slide 19: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 March 2017 31 March 2016 31 December 2016 31 March 2017 31 March 2016 31 December 2016 Amounts in USD 1 000 Unaudited Unaudited Audited Amounts in USD 1 000 Unaudited Unaudited Audited ASSETS EQUITY Non-current assets Capital and reserves attributable
Slide 20: Largest shareholders as of 10 May
Largest shareholders as of 10 May # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 7,844,249 23.92 2 PERESTROIKA AS 6,993,857 21.33 3 MORGAN STANLEY & CO. LLC 4,507,948 13.75 4 BÆKKELAGET HOLDING AS 1,010,00 3.08 5 STATOIL PENSJON C/O JP MORGAN 701,458 2.14 6 SPORTSMAGASINET AS 575,001 1.75 7 NH
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