Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q2 2016 Earnings Presentation
22 slides from Electromagnetic Geoservices Asa's earnings presentation, Aug 18, 2016
Slide 1: Second Quarter 2016 Results
SECOND QUARTER 2016 RESULTS. Oslo, 18 August 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 Second quarter 2016 • E&P spending continues to be slow • Completion of various multi-client projects in Norway & India • Changes in the organisation to reduce cost and increase efficiency • Settlement of patent disputes with PGS • Revenues, incl. late sales / uplifts recorded: USD 15.1 m
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Second quarter key financials
Second quarter key financials Quarterly revenues 25 • Revenues of USD 15.1 million, mainly multi-client revenues 20 15 • EBITDA of USD 2.8 million 10 14.7 • Multi-client impairments of USD 9.2 million 5 0 • Vessel utilisation of 76% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Contact sales Multi-client revenues -
Slide 6: Operational cost base development
Operational cost base development Quarterly operational cost base development* Comments • Operational costs base of USD 14.7 million 40 - Capitalised multi-client expenses of USD 4.0 million 35 - Write down of obsolete inventory of USD 1.5 million 30 25 • Cost reduction program progressing as planne
Slide 7: Free cash development
Free cash development 30 • Net increase in free cash of USD 1.2 million • Cash and cash equivalents at end of Q2 of USD 25 25.4 million, incl restricted cash - Restricted cash of USD 4.2 million at end of Q2 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) • Uplift/late sales revenues of USD 14.7 million in Q2 14 • Investments of USD 4.0 million in Q2 12 • Amortisation of USD 2.8 million - Straight-line amortisation 10 • Impairment of USD 9.2 million - US GOM and Ind
Slide 9: Second quarter operations
mw emgs Second quarter operations Spot the difference.
Slide 10: Second quarter vessel operations
Second quarter vessel operations Atlantic Guardian Q2 2016, MC projects: Hammerfest Basin Norwegian Sea North Sea BOA Thalassa EM Leader Q1 2016: MC project along the West Coast of India completed in April Vessel idle in Singapore Laid up from 15 May 2015, charter terminated 1 June 2016. 10
Slide 11: The Barents Sea story continued…
The Barents Sea story continued… 11
Slide 12: Unlocking the value of EM in the Flemish Pass
Unlocking the value of EM in the Flemish pass… Economic interest • 2015 saw record breaking land sales and the attraction of major oil companies to the region • Basins of economic interest include Flemish Pass, Jeanne d’Arc, Orphan, Carson, etc • Following the late sale of the data acquired in 2014,
Slide 13: Market and outlook
mw emgs Market and outlook Spot the difference.
Slide 14: Market update
Market update • Crude oil prices movements between USD 40-50 Order backlog - limited earnings visibility per barrel, suggesting the lower for longer scenario • The expected 26% decline in E&P spending in 2016 50 is the second largest drop since 1986 45 • 2017 capex guidance largely unavailable at th
Slide 15: Selection of current opportunities
Selection of current opportunities Norway: Canada: • Hammerfest MC campaign completed in April • MC data covering Flemish • MC campaign in Norwegian Sea completed in May Pass basin available for sale • MC campaign in North Sea completed in June • Industry interest being • 23rd licensing round, futur
Slide 16: Summary and outlook
Summary and outlook • The H1 crude oil price rally halted at the start of Q3. Slow market for oil services so far in 2016 • The market is challenging and characterised by high uncertainty • Cost reductions well underway • Completion of various multi-client projects in India and Norway • JIP field te
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 First half year First half year Q2 2016 Q2 2015 2016 2015 2015 Amounts in USD 1 000 Unaudited Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 388 4,789 13,426 26,898 45,008 Multi-client pre-funding - 1,213 - 1,092 3,546 Multi-client late sales 14
Slide 20: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Year ended Year ended Half year ended Half year ended 31 December Half year ended Half year ended 31 December 30 June 2016 30 June 2015 2015 30 June 2016 30 June 2015 2015 Amounts in USD 1 000 Unaudited Unaudited Audited Amounts in USD 1 000 Unaudited Una
Slide 21: Largest shareholders
Largest shareholders as of 17 August # 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 STATOIL PENSJON 735,458 2.24 5 SPORTSMAGASINET AS 575,001 1.75 6 BÆKKELAGET HOLDING AS 546,250 1.67 7 NHO - P665AK 4
Slide 22: Vessel charters
Vessel charters BOA Thalassa Atlantic Guardian EM Leader Firm Charter 1 April 2017 18 December 2017 1 June 2016 Q2 status In operation, Asia In operation, Norway Terminated Vessel owner BOA Offshore North Sea Shipping Seatrans Flexible rates for when (i) Flexible rates for when (i) Rates in operatio
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