13 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 11, 2010
Slide 1: EMGS ASA – Fourth Quarter & Full Year 2009 Presentation
EMGS ASA – FOURTH QUARTER & FULL YEAR 2009 PRESENTATION CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 11 February 2010 Q4 OVERVIEW Q4 09 financial results • Revenues: USD 7.0 million • EBITDA loss: USD 18.7 million Data-licensing agreement in the Gulf of Mexico with Rocksource 3D EM survey
Slide 2: The Year in Brief
THE YEAR IN BRIEF 2009: Transition in a challenging environment • Fleet reduction and restructuring • Cost reductions EM data • Retained operational flexibility Building partnerships and strengthening the sales organisation Combining • Alliance with Fugro data • TGS and sales and marketing network •
Slide 3: Financial Highlights / Operational Costs
FINANCIAL HIGHLIGHTS USD million Q4 09 financial results • Revenues: USD 7.0 million 40 • EBITDA loss: USD 18.7 Vessel utilisation at 27% in Q4 30 Successful completion of private placement 20 at NOK 4.50 per share • Gross proceeds of USD 24 million 10 Subsequent offering at NOK 4.50 per share 0 • S
Slide 4: Consolidated Income Statement / Capital Structure
CONSOLIDATED INCOME STATEMENT 2009 2008 Q4 2009 Q4 2008 Unaudited Unaudited Unaudited Unaudited USD million Revenues 7.0 15.6 59.0 116.2 Charter hire, fuel and crew expenses 13.4 14.7 55.2 70.5 Employee expenses 8.5 9.4 30.2 40.5 Other operating expenses 3.8 5.7 13.3 26.6 EBITDA *) (18.7) (14.2) (39
Slide 5: Executing on the Fugro Alliance
OPERATIONS EXECUTING ON THE FUGRO ALLIANCE Multi-client project in the Norwegian Sea initiated (Vema Dome) Other joint multi-client projects identified in the Norwegian Sea, Gulf of Mexico and in the Far East Joint sales and marketing network has identified a number of contract leads Commercial perf
Slide 6: Improved Sales and Marketing Model / Building Multi-Client Library
IMPROVED SALES AND MARKETING MODEL STRATEGIC ALLIANCE PARTNERSHIPS INTERNAL RESOURCES Multi-client project teams EM/seismic contract teams Terra Global Executive VP Sales & Magseis Marketing appointed Other TOTAL EFFECT: Enhanched marketing reach and footprint Strengthened opportunity pipeline JOB #
Slide 7: Launching Multi-Client for the 21st Licensing Round in Norway
LAUNCHING MULTI-CLIENT FOR THE 21st LICENCING ROUND IN NORWAY Continuing the success from the previous licensing round Nominated blocks match existing data library Good pre-funding prospects one month ahead of industry launch EM data from two multi-client campaigns 21st licensing round will constiti
Slide 8: Market Update / Summary and Outlook
MARKET UPDATE USD million Increased activity in contract market 35 Relatively high tendering activity 30 25 Most of EMGS’s contracts are won through direct awards 20 E&P spending surveys indicate increased 15 activity in 2010 10 5 0 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Based on Invitation to tender d
Slide 9: Summary and Outlook
SUMMARY First joint 3D EM multi-client survey with Fugro in the Norwegian Sea ahead of licensing round Enhanced marketing reach and footprint through partnerships Strengthening of top management • Dag Reynolds in charge of global sales • 20 years of seismic experience Improved financial position • S
Slide 10: Q&A / Appendix
Q&A @ Clearplay muemgs APPENDIX @ Clearplay mw emgs
Slide 11: Condensed Balance Sheet / Condensed Statement of Cash Flow
CONDENSED BALANCE SHEET Year end Year end USD million 2009 2008 ASSETS Intangible assets 2.9 3.8 Property, plant and equipment 32.1 42.7 Investment in joint venture 3.0 12.8 Total non-current assets 38.0 59.2 Trade receivables 9.9 13.9 Other current assets 25.6 25.1 Cash and cash equivalents 29.6 28
Slide 12: Ownership (as of February 2010) / EMGS Experience and Presence
OWNERSHIP (AS OF 8 FEBRUARY 2010) Shareholder Shares Holding 1 WARBURG PINCUS 61 873 434 49.27% 2 ODIN NORGE 4 805 000 3.83 % 3 DNB NOR SMB, VPF 4 298 000 3.42 % 4 BRUHEIM, BJARTE HENRY 3 000 088 2.39 % 5 ODIN OFFSHORE 3 000 000 2.39 % 6 SISSENER SIRIUS ASA 2 000 000 1.59 % 7 SUNDT AS 2 000 000 1.59
Slide 13: The Value of EM / EMGS's Services
THE VALUE OF EM A clearer, more complete understanding of the subsurface Reduces risk and finding costs per barrel Represents an additional measurement to the existing portfolio of sub-surface measurements INTEGRATED EM SYSTEM EMGS’S SERVICES Three Clearplay service offerings have been designed to s