13 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 19, 2009
Slide 1: EMGS ASA Third Quarter Presentation 2009
EMGS ASA THIRD QUARTER PRESENTATION 2009 CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 19 November 2009 OVERVIEW Q3 09 financial results • Revenues: USD 15.3 million • EBITDA loss: USD 5.9 million before non-cash provision of USD 5.6 million Streamlining of operations and cost reductions ah
Slide 2: Operations: Fleet Restructuring
OPERATIONS FLEET RESTRUCTURING Core vessel fleet consists of the two 3D EM vessels • Improved survey efficiency at lower cost • Technical downtime reduced • Designed for efficient 3D acquisition Mobile acquisition set provides operational flexibility • Will be stored at Fugro facilities in Singapore
Slide 3: Major 3D EM Programs in Q3; Strategic Alliance with Fugro
MAJOR 3D EM PROGRAMS PERFORMED IN Q3 Canada • Reducing risk in a challenging exploration environment • Customer feedback: “The high safety standards of the crew and EMGS management were instrumental in completing the survey on time and within budget, and with good data quality.” 3D EM survey for Cai
Slide 4: Multi-client Partnership with TGS; Marine EM Environmentally Benign
MULTI-CLIENT PARTNERSHIP WITH TGS Multi-client 3D EM survey in the Fylla East area offshore Greenland • Well data and seismic data in combination with EM data Several large prospective basins • Licensing round in 2010 • High levels of seismic activity Evaluating multi-client projects worldwide INTEG
Slide 5: Increased Tendering Activity
INCREASED TENDERING ACTIVITY USD million A sign that the marine EM market is entering a new phase 35 30 Majority of these projects related to pre-drill prospect testing 25 More competitive pricing on tender projects 20 Most of EMGS’s contracts still won through 15 direct award 10 5 0 Q1 08 Q2 08 Q3
Slide 6: Financial Highlights; Operational Costs
FINANCIAL HIGHLIGHTS USD million Q3 09 financial results • Revenues: USD 15.3 million 40 • EBITDA loss: USD 5.9 million before non-cash provision of USD 5.6 million 30 Vessel utilisation at 40% in Q3 20 Cash level unchanged from previous quarter 10 Cost reductions ahead of plan 0 Q2 08 Q3 08 Q4 08 Q
Slide 7: Consolidated Income Statement; Capital Structure
CONSOLIDATED INCOME STATEMENT First 9 months First 9 months Q3 2009 Q3 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited USD million Revenues 15,3 33,4 52,0 100,5 Charter hire, fuel and crew expenses 17,6 17,0 41,8 55,8 Employee expenses 6,3 10,8 21,7 31,1 Other operating expenses 2,9 4,9 9,5 1
Slide 8: Summary and Outlook
SUMMARY AND OUTLOOK SUMMARY Revenues continue to fluctuate quarter by quarter More efficient operations and substantially reduced cost base Core vessel fleet: Two high-capacity, purpose-built 3D EM vessels Mobile acquisition set provides scalability and flexibility Market penetration supported throu
Slide 9: Outlook; Q&A
OUTLOOK Increased tendering activity supports a growing opportunity pipeline Agreement with Rocksource could expand further opportunities in the Gulf of Mexico Substantial campaigns for targeted NOCs/Majors identified for 2010 Several new multi-client projects identified Expect alliance with Fugro w
Slide 10: Appendix: Condensed Balance Sheet
APPENDIX CONDENSED BALANCE SHEET 9 months ended 9 months ended Year ended 31 USD million 30 Sept 2009 30 Sept 2008 December 2008 ASSETS Intangible assets 3.2 4.9 3.8 Property, plant and equipment 37.7 46.4 42.7 Investment in joint venture 4.9 13.1 12.8 Total non-current assets 45.9 63.4 59.2 Trade R
Slide 11: Condensed Statement of Cash Flow; Ownership
CONDENSED STATEMENT OF CASH FLOW Nine months ended USD million 30 September 2009 2008 Net cash flow from operating activities (20.6) (12.1) Net cash flow from investing activities (7.4) (22.0) Net cash flow from financial activities 23.2 34.3 Net profit (loss) before income taxes (49.5) (37.7) INTEG
Slide 12: The Value of EM; EMGS Experience and Presence
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 EXPERIENCE AND PRESENCE INTEGRATED EM SYSTEM
Slide 13: EMGS's Services
EMGS’S SERVICES Three Clearplay service offerings have been designed to support operators during the exploration phase INTEGRATED EM SYSTEM