Slide 1: Carbon Transition Q4 2022
21.02.2023 Carbon Transition Q4 2022 22 February 2023
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 • Fair value of multi-client library USD 37.5 million o Includes second write-up of Utsira survey of USD 7.0 million o Total multi-client write-ups year-to-date of USD 12.6 million • Announced reprocessing of the Utsira survey, backed by the major operators in the area • USD 2.5
Slide 4: Revised strategy around attractive multi-client library
Revised strategy around attractive multi-client library Maximizing value of seismic operations • State of the art multi-client library, targeting near-field exploration and production optimization o Utsira (Norway) survey processed 2020; reprocessing 2023/2024 o Gulf of Suez (Egypt) survey processed
Slide 5: Seismic market observations
Seismic market observations Significant improvement in market conditions • Current oil and gas prices are highly supportive for our multi-client business in Norway and Egypt • The re-opening of China and the restrictions on Russian exports creates a supportive backdrop for the oil and gas prices in
Slide 6: Multi-client portfolio: Norwegian North Sea – Utsira OBN
Multi-client portfolio Norwegian North Sea – Utsira OBN • Estimated fair value of USD 28.2 million, including a USD 7.0 million write- up • Historical cost USD 82 million • State of the art survey; processing completed Q3 2020 • ILX OBN survey located to the west of the Utsira high in the Norwegian
Slide 7: Multi-client portfolio: Axxis/CGG reprocessing
Multi-client portfolio Norwegian North Sea – Axxis/CGG reprocessing • In December we announced the Axxis/CGG reprocessing of the Utsira survey, a project funded by the major operators in the area • Reprocessing has demonstrated significant improvements in subsurface imaging • Preliminary results sho
Slide 8: Multi-client portfolio: Egypt – Gulf of Suez
Multi-client portfolio Egypt – Gulf of Suez • Estimated fair value USD 9.3 million • Processing completed Q3 2022; state of the art node and streamer data for subsalt analysis • Inaugural late sale USD 1.6 million in Q3 2022 • There are currently two wells scheduled to be completed in the first part
Slide 9: Net asset value
Net asset value Summary NAV per share review Observations USD NOK per millions share • Legacy business represents largest share of NAV Multi-client library 37.5 1.57 o Multi-client investments Financial assets 3.0 0.13 Legacy business 40.5 1.70 o Node equipment earn-out agreement • Investment portfo
Slide 10: Comprehensive income
Comprehensive income USD millions Comprehensive income Q4 2022 Observations • Utsira late sales of USD 2.5 million Revenue 2.5 • Non-cash reduction in value of investments of USD 4.3 Changes in fair value of investments (4.3) million Cost of sale (0.0) Selling, general & administrative expenses (0.6
Slide 11: Financial position
Observations Financial position • Utsira at USD 28.2 million (incl. write-up Utsira reprocessing), Gulf of Suez at USD 9.3 million • NPV node equipment earnout - financial assets of USD millions USD 3.0 million ASSETS 31.12.2022 • Other current assets from multi-client late sales • Taxes payable rep
Slide 12: Cash flow
Cash flow USD millions Cash flow Q4 2022 Observations • Write-up of Utsira reprocessing USD 7.0 million Profit (loss) before tax 3.5 Taxes paid (0.0) • Amortization of Utsira and Gulf of Suez USD 1.4 million Changes in fair value for investments 4.3 in the quarter Amortization and write-up (reversal
Slide 13: Outlook
Outlook • Expect oil and gas prices to remain at historically high levels for foreseeable future • Improved profitability in energy sector expected to result in increased capital investment by oil majors and independents • Historical underinvestment in exploration and development is driving need for
Slide 14: Investing in a sustainable future
Investing in a Askekroken 11 carbn.no sustainable future. 0277 Oslo Copyright © 2021 Norway Carbon Transition