Sed Energy Holdings Plc · OSL:ENH

Sed Energy — SeaBird Exploration — Q1 2019 Earnings Presentation

26 slides from Sed Energy's earnings presentation, May 29, 2019

  1. Slide 1: SeaBird Exploration First Quarter Presentation

    SeaBird Exploration First Quarter Presentation 29 May 2019 CEO Hans Petter Klohs CFO Nils Haugestad

  2. Slide 2: Forward-looking statements

    Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an

  3. Slide 3: Agenda

    Agenda • Fleet update • Highlights • Market and operational review • Financial review • Summary and outlook • Q&A 3

  4. Slide 4: Fleet update

    Fleet update

  5. Slide 5: Fleet renewal completed in Q2 2019

    Fleet renewal completed in Q2 2019 Attractive acquisition economics for BOA Galatea and BOA Thalassa • BOA Galatea (to be renamed Fulmar Explorer) and BOA Thalassa (to be renamed Petrel Explorer) are sister vessels built 2008/09 in Norway for USD 50m each • Agreed acquisition price USD ~11 million/v

  6. Slide 6: Adding capacity at favorable flexible terms

    Adding capacity at favorable flexible terms Charter-in agreement for vessel into 2D and niche 3D market recovery Nordic Explorer 2D/3D vessel built in 1986, rebuilt in 1993 Vessel Well suited for 2D, source & niche-3D projects (4 streamers) Niche 3D survey in West Africa for approx. 80 days Contract

  7. Slide 7: Fleet overview

    Fleet overview Flexible service offering - matching industry technical requirements 2D and source vessels 3D/2D and source vessels EM vessel Aquila Explorer Osprey Explorer Voyager Explorer Eagle Explorer Petrel Explorer 2D - 1 X 12 Km 2D - 1 X 12 Km 3D-SW - 4 X 6 Km 3D - 6 X 8 Km Configured for Sou

  8. Slide 8: SeaBird is the leader in an attractive niche market

    SeaBird is the leader in an attractive niche market Largest operator of active 2D/source vessels1 Largest operator of active 2D/source vessels1 SeaBird BGP Shearwater COSL Vestland Offshore Seismic operator Westcon Vessel provider Sanco Eidesvik Others Others 0 2 4 6 8 SeaBird offers a large fleet t

  9. Slide 9: Highlights

    Highlights

  10. Slide 10: Q1-19 Highlights

    Q1-19 Highlights Key financial & operational figures • Revenues of $12.3 million ($6.8 million Q4 2018) • EBITDA of positive $2.7 million (negative $1.2 million Q4 2018) • EBIT of positive $0.1 million (negative $3.6 million Q4 2018) • 76% fleet utilization (including stacked Aquila Explorer) • CAPE

  11. Slide 11: Market and operational review

    Market and operational review

  12. Slide 12: Segment operating activity

    Segment operating activity Contract revenue by survey type (USD millions) Contract revenue by region (USD millions) 14 14 12.3 12.3 12 12 2.0 10 10 8 6.8 9.4 8 6.8 5.4 5.4 6 4.7 6 4.7 2.6 10.3 4 2.9 5.4 4 2.9 4.3 2.2 3.1 2 4.7 0.8 2.8 2.9 2.9 2 1.4 - 1.2 1.1 1.4 1.1 2.1 1.1 1.4 0 - - - - - 0 - Q1 20

  13. Slide 13: Operational update

    Operational update Four vessels in operation during the quarter Voyager Explorer (Asia Pacific) Q1 2019 • VESSEL JAN JAN JAN JAN FEB FEB FEB FEB M AR M AR M AR M AR – Continuation of project which commenced in Q3 2018 VOYAGER – Project extended into April 2019 OSPREY • Osprey Explorer (GoM) HARRIER

  14. Slide 14: Contract update

    Contract update • Eagle Explorer source contract extended by 80 days; firm period until 15 August 2019, with further options for CGG to extend with up to 60 days • Harrier Explorer working on 2D contracts with expected duration into Q3-19 • Voyager Explorer completed its source project in the Asia P

  15. Slide 15: Tender activity in SeaBird markets

    Tender activity in SeaBird markets Tender Duration (months) 140 120 100 5 22 71 80 44 31 50 37 60 42 43 31 60 40 29 78 53 27 55 58 63 52 20 49 25 31 36 26 23 14 19 0 Q1 16 Q2 16 Q3 16 Q14 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 2D & 3D (SW) Source - OBN Source - WAZ/Undershoot/Strea

  16. Slide 16: Positive trend for 2D and source rates

    Positive trend for 2D and source rates 2019 YTD reports indicate improved contract prices across all seismic segments 2D/Source day rates1 Dayrates (USDk) 120 2D Source 100 100 80 65 65 60 55 50 50 47.5 45 40 40 40 40 20 n/a n/a n/a 0 2014 2015 2016 2017 2018 1Q 2019 • 2D and source rates have remai

  17. Slide 17: Financial review

    Financial review

  18. Slide 18: Historical operating comparison

    Historical operating comparison Revenues EBITDA (USD millions) (USD millions) 14 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 4 12 2.7 3 10 2 2.7 1.0 8 1 6 12.3 0 (1.0) (1.2) -1 (1.4) 4 6.8 (1.2) 5.4 -2 (2.8) 2 4.7 2.9 -3 (2.3) (2.8) 0 -4 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Contract revenues Multi-client revenues EBITDA

  19. Slide 19: Vessel utilization

    Vessel utilization Vessel utilization 100% 0% 0% 3% 0% • Q1 utilization of 76% for whole fleet 7% 90% 24% 80% 50% 42% 36% 0% ‒ Four vessels active during the entire quarter 70% 60% 78% 7% 50% 0% 8% ‒ Aquila Explorer warm stacked 40% 76% 30% ‒ No yard stays 50% 51% 0% 47% 20% 10% 22% 0% Q1 18 Q2 18 Q

  20. Slide 20: Income statement Q1 2019

    Income statement Q1 2019 CONSOLIDATED INTERIM STATEMENT OF INCOME Q1 2019Q1 2018 All figures in USD millions (except EPS) Actual Actual • Revenues negatively affected by an agreed 21 Contract 12.3 4.7 day off-hire period for the Voyager Explorer Multi-client Total revenues 12.3 - 4.7 - related to a

  21. Slide 21: Cash flow statement

    Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Q1 2019 Q1 2018 All figures in USD millions Actual Actual • Working capital build of approximately $3 Profit / (loss) before income tax (0.2) (0.9) Depreciation, amortization and impairment 2.5 1.7 million related to general increase in

  22. Slide 22: Balance sheet

    Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 31 March All figures in USD millions (except for equity ratio) 2019 2018 Property, plant and equipment 39.9 26.8 Multi-client library 1.6 - Other non-current assets 0.6 0.1 Inventories 1.2 1.0 Trade receivables 4.9 3.1 Contract

  23. Slide 23: Raised gross NOK 305 million in additional equity in Q2-19

    Raised gross NOK 305 million in additional equity in Q2-19 Overview of Gross amount Issue Number of Number of share issues price shares issued outstanding shares Shares 284,487,312 outstanding as per 31 March 2019 Q2 private NOK 250.0 million NOK 1.20 208,333,330 492,820,642 placement Shares to be N

  24. Slide 24: Summary and outlook

    Summary and outlook

  25. Slide 25: Summary & Outlook

    Summary & Outlook Q1 increased revenue and positive EBITDA with improved fleet utilization Structural growth in OBN seismic – early cyclical growth in 2D/3D demand Day rates increased 20-30% YoY Fleet renewal completed – enlarged and versatile service offering Market leading seismic contractor in at

  26. Slide 26: SeaBird Exploration Q&A

    SM SeaBird Exploration Q&A

SeaBird Exploration — Q1 2019 Earnings Presentation on 6ix