Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2016 Earnings Presentation
22 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 3, 2016
Slide 1: Third Quarter 2016 Results
THIRD QUARTER 2016 RESULTS. Oslo, 3 November 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: Highlights
Highlights Third quarter 2016 • Geophysical spending continues to be slow • Completion of the JIP test field phase • Acquisition of multi-client data in Norway • Revenues of USD 4.5 million Subsequent events • Reduction in global employee expenses of around 20% • New terms agreed for the Atlantic Gu
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Third quarter key financials
Third quarter key financials Quarterly revenues 25 • Revenues of USD 4.5 million, mainly multi-client revenues 20 15 • EBITDA of negative USD 6.2 million 10 14.7 • Vessel utilisation of 52% 5 0 - Multi-client projects and JIP field test Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Contact sales Multi-client revenu
Slide 6: Operational cost base development
Operational cost base development Quarterly operational cost base development* Comments • Operational costs base of USD 14.2 million 40 - Capitalised multi-client expenses of USD 1.9 million 35 - Capitalised JIP field test expenses of USD 1.7 million 30 25 • Cost reduction program 20 - Current cost
Slide 7: Free cash development
Free cash development 30 • Net decrease in free cash of USD 5.5 million • Cash and cash equivalents at end of Q3 of 25 USD 19.8 million, incl restricted cash - Restricted cash of USD 4.1 million at end of Q3 20 15 Cash covenant of bond loan 10 5 0 Free cash at EBITDA Change trade Change other Purcha
Slide 8: Multi-client investments
Multi-client investments Overview of book value of multi-client library (USD million) 16 • Uplift/late sales revenues of USD 4.0 million in Q3 14 • Investments of USD 1.9 million in Q3 12 - Hammerfest Basin and Loppa High Area - Preparations for the APA and 24th licensing round 10 8 • Amortisation o
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Third quarter vessel operations
Third quarter vessel operations Atlantic Guardian Atlantic Guardian Q3 2016, JIP: Q3 2016, MC projects: Test surveys in the Barents Sea and Norwegian Sea and North Hammerfest Basin Sea BOA Thalassa Q3 2016: Laid up in Singapore since May 1, 2016 10
Slide 11: The Barents Sea success story continued…
The Barents Sea success story continued… Coming up: 24th licensing round! • In press releases in Q3 2016, the Ministry of Petroleum and Energy invited oil companies to nominate blocks for the 24th licensing round. • Deadline for nominations: November 30, 2016. • The announcement of the 24th licensin
Slide 12: EMGS Mexico Reprocessing Project
EMGS Mexico Reprocessing Project Regionally Calibrated CSEM Interpretation Trion 1D Trion 1DL “Once the prospects were drilled, an extraordinary match between proven hydrocarbons and areal distribution of resistivity was observed.” M. Arreguin Manager New Areas and Partnerships Pemex, Mexico D.F. Se
Slide 13: Eastern Newfoundland CSEM Program
Eastern Newfoundland CSEM Program • CSEM data in good agreement with well results, fueling interest in using CSEM to de-risk wells in the Flemish Pass and Orphan Basin. • Ongoing license round in Eastern Newfoundland may increase demand for CSEM in the region. • EMGS roadshow held during AAPG in Cal
Slide 14: Selection of current opportunities
Selection of current opportunities Canada: Norway: • MC data covering Flemish Pass basin • Coverage in the Barents Sea expanded in H2 2016 in available for sale anticipation of the nominations and announcements • Industry interest being gauged to during the 24th licensing round acquire more data in
Slide 15: Market update
Market update • Early signs of improvement noted as earlier dialogues Order backlog - limited earnings visibility are converted in pricing requests and one provisional award (Asia). 50 • However, caution is required as offshore geophysical 45 spending dropped down to 2003 levels and 40 improvements
Slide 16: Summary and outlook
Summary and outlook • Offshore geophysical spending dropped to 2003 levels during 2016, some improvement expected in 2017 • The market remains challenging and is dominated by high uncertainty to bring leads to fruition, demanding a strong focus on cost control and cost reductions • Cost reductions a
Slide 17: Questions?
aw emegs Questions? Spot the difference.
Slide 18: Appendix
SPOT THE DIFFERENCE. ppendix Spot the difference.
Slide 19: Consolidated Income Statement
Consolidated Income Statement Year to date Year to date Q3 2016 Q3 2015 2016 2015 2015 Amounts in USD 1 000 Unaudited Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 393 9,110 13,818 36,008 45,008 Multi-client pre-funding - 2,454 - 3,546 3,546 Multi-client late sales 4,061 4,
Slide 20: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 30 September 30 September 31 December 30 September 30 September 31 December 2016 2015 2015 2016 2015 2015 Amounts in USD 1 000 Unaudited Unaudited Audited Amounts in USD 1 000 Unaudited Unaudited Audited ASSETS EQUITY Capital and reserves attributable to
Slide 21: Largest shareholders as of 2 November
Largest shareholders as of 2 November # 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 796,250 2.43 5 STATOIL PENSJON C/O JP MORGAN 735,458 2.24 6 SPORTSMAGASINET AS 575,001 1.75 7
Slide 22: Vessel charters
Vessel charters BOA Thalassa Atlantic Guardian Firm Charter 1 April 2017 1 October 2021 Q3 status Laid up, Asia In operation, Norway Vessel owner BOA Offshore North Sea Shipping Flexible rates for when (i) Rates in operation, (ii) idle and Fixed (iii) laid up
Electromagnetic Geoservices — Q3 2016 Earnings Presentation on 6ix