Slide 1: Carbon Transition Q2 2022
24.08.2022 Carbon Transition Q2 2022 25 August 2022
Slide 2: Disclaimer
Disclaimer • The information in this presentation has been prepared by Carbon Transition ASA (the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presentation has be
Slide 3: Quarterly highlights
Quarterly highlights • One multi-client late sales of USD 1.8 million • Fair value of multi-client assets of USD 33.2 million • Fair value of investments of USD 12.5 million relative to USD 9.9 million initial investment o Non-cash write-down of USD 4.5 million in the period o Stronger US dollar acc
Slide 4: Quarterly highlights (con't)
Quarterly highlights (con’t) • No financial indebtedness • Bank deposits of USD 2.7 million. Bank deposits including trade receivables from multi-client sales in the quarter were USD 4.9 million. These receivables have been collected in Q3 2022 • Bank deposits plus trade receivables and marketable s
Slide 5: High-value legacy business
High-value legacy business Maximizing value of seismic operations Multi-client library Ocean bottom node operations • Q2 2022 book value of USD 33.2 million • Ocean bottom node operations sold to Magseis Fairfield in • Late sales to generate significant revenues and cash flow March 2022 • Book value
Slide 6: Seismic market observations
Seismic market observations Significant improvement in market conditions • High oil and gas prices are likely to contribute to increased seismic multi- client data demand • Historical underinvestment in oil and gas production should result in catch- up spending • Higher E&P company cash flow support
Slide 7: Multi-client portfolio - Norwegian North Sea, Utsira
Multi-client portfolio Norwegian North Sea - Utsira • Estimated fair value of USD 22.7 million • Near-field survey located to the west of the Utsira high in the Norwegian North Sea; backed by AkerBP, Equinor and TGS • Covers approximately 2,000 square kilometers of highly prospective acreage with hi
Slide 8: Multi-client portfolio - Egypt, Gulf of Suez
Multi-client portfolio Egypt – Gulf of Suez • Estimated fair value of USD 10.6 million • Marketing of data now following completion of processing o Do not expect data sales until 2023 • Prolific petroleum basin; exploration historically impeded by complex geology and presence of salt bodies • Data a
Slide 9: Investment portfolio
Investment portfolio Summary valuation Observations • Increased price pressure in light of growing market uncertainty • Non-cash portfolio write-down of USD 4.5 million Investment o Stronger US dollar resulted in USD 1.4 million of Amount Q1 22 Q2 22 Change this valuation adjustment • CO2 Capsol sha
Slide 10: Net asset value
Net asset value Summary NAV per share review USD NOK per Observations millions share • Legacy business represents close to 75% of net asset Multi-client library 33.2 1.37 value Financial assets 3.0 0.12 Legacy business 36.3 1.50 o Multi-client library alone accounts for almost 70% • Investment portf
Slide 11: Comprehensive income
Comprehensive income USD millions Observations Comprehensive income Q2 2022 • Utsira multi-client late sales of USD 1.8 million • Non-cash reduction in value of investments of USD 4.5 Revenue 1.8 million Changes in fair value of investments (4.5) Cost of sale 0.1 • Cost of sales related to divested
Slide 12: Financial position
Financial position Observations • Utsira at USD 22.7 million, Gulf of Suez at USD 10.6 million USD millions • NPV node equipment earnout - financial assets of USD 3.0 million ASSETS 30.6.2022 • Trade receivable from multi-client late sales includes VAT Multi-client library 33.2 Investments 12.5 • Ta
Slide 13: Cash flow
Cash flow USD millions Cash flow Q2 2022 Observations • Trade receivables of USD 2.2 million (including VAT) Profit (loss) before tax (4.1) collected in Q3 Taxes paid (0.1) Changes in fair value for investments 4.5 • Paid taxes and interest of USD 62 thousand Amortization of multi-client 0.7 Interes
Slide 14: Outlook
Outlook • Conflict in Ukraine and focus on energy security expected to keep upward pressure on energy prices • Increased capital spending by oil companies should positively impact multi-client late sales and overall seismic survey activity o Oil companies slow to implement new production plans; prud
Slide 15: Investing in a sustainable future
Investing in a Askekroken 11 carbn.no sustainable future. 0277 Oslo Copyright © 2021 Norway Carbon Transition