Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2013 Earnings Presentation
23 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 14, 2013
Slide 1: Electromagnetic Geoservices ASA Third Quarter 2013 Results
ELECTROMAGNETIC GEOSERVICES ASA THIRD QUARTER 2013 RESULTS CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 14 November 2013
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 Third Quarter 2013
HIGHLIGHTS THIRD QUARTER 2013 Operational highlights • Successful completion of contract in Brunei • Start-up PEMEX contract and subsequently adding a second vessel • First results from sub-salt imaging project in US Gulf of Mexico • New contract with Maersk Oil Angola and Nippon in Malaysia, LOI fo
Slide 4: Financial Overview
FINANCIAL OVERVIEW wemgs
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Key figures Q3 Revenues and revenues/costs per vessel month (USD Million) • Revenues of USD 23.6 million 60,0 5,0 50,0 7.5 • EBITDA of USD -3.5 million 4,0 40,0 • Net loss of USD -12.2 million 3,0 30,0 2,0 20,0 10,0 1,0 Multi-client Q3 0,0 0,0 • Sales of USD 2.1 million Q3'12 Q4
Slide 6: Vessel Utilisation
VESSEL UTILISATION • Fleet utilisation at 77% 100 % - Multi-client: 42% 90 % - Contract: 35% 80 % • Good performance by BOA 70 % Thalassa (91%) in Brunei 60 % • BOA Galatea affected by 50 % mobilisation and preparation for 40 % the PEMEX contract (71%) 30 % • Strong performance by Atlantic 20 % Guar
Slide 7: Capital Structure
CAPITAL STRUCTURE Balance sheet as at 30.09.13 (USD million) Cash and working capital 250 • Cash at USD 46.9 million • Trade receivables reduced by USD 21.2 200 million to USD 27.4 million USD 58.6 million • Other receivables reduced by USD 9.9 150 million USD 46.9 million • Trade payables at USD 15
Slide 8: Operational Overview
OPERATIONAL OVERVIEW wemgs
Slide 9: Successful Completion of Contract in Brunei
SUCCESSFULL COMPLETION OF CONTRACT IN BRUNEI • Total value of USD 50 million - In addition to ~ USD 20 million for a project in Malaysia in 2012 • First major regional exploration 3D EM survey - Regional prospect de-risking - Improved regional understanding - Use EM to identify new leads and stratig
Slide 10: PEMEX - Large-Scale Adopter of EM
PEMEX - LARGE-SCALE ADOPTER OF EM Contract with PEMEX started in September • Contract value of USD 99.8 million • Atlantic Guardian added from mid-November, accelerating acquisition Confirms value proposition of EM • Portfolio optimisation, important part of PEMEX’ deep water exploration program • B
Slide 11: Sunshine - Enhanced Sub-Salt Seismic Images with EM
SUNSHINE - ENHANCED SUB-SALT SEIMIC IMAGES WITH EM • EMGS & Schlumberger collaboration WAS Seismic only WAS Seismic & CSEM/MT in the Gulf of Mexico • Enhanced seismic imaging • Simultaneous joint inversion of seismic and CSEM/MT data • Improved salt geometry • Strategically important project - Testi
Slide 12: Barents Sea – EM Technology Improves Exploration Success
BARENTS SEA – EM TECHNOLOGY IMPROVES EXPLORATION SUCCESS 10000 12000 14000 16000 18000 20000 22000 24000 26000 0 0 • 110 blocks covered 7324/7-1S 7324/8-1 -400 -400 • More than 30.000 km2 • Strong technology track record -800 -800 -1200 - EM results match drilling results in 19 of 19 wells -1200 Wis
Slide 13: Market Update
MARKET UPDATE Order book (USD Million) Good contract coverage for next quarters 140 • Minimum USD 8 million with Maersk Oil Angola • One month acquisition for Nippon in Malaysia 120 • LOI for one month follow-on work in NW Australia* • Atlantic Guardian mobilised as second vessel for 113 PEMEX 100 C
Slide 14: Vessel Schedule
VESSEL SCHEDULE Expected vessel schedule as of 14 November 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Mala- NW BOA Thalassa Brunei ysia Australia Asia Asia Brazil (Foz do BOA Galatea Mexico Mexico Amazona s) Atlantic Guardian Barents Sea Mexico GoM EM Lea
Slide 15: Summary and Outlook
SUMMARY AND OUTLOOK Third quarter • Successfull completion of Brunei contract • Start-up PEMEX contract • Promising initial results from sub-salt project • Financials affected by two vessels mobilising and investments in multi-client Short-term outlook • Good contract coverage for Q413 and Q114 • Ex
Slide 16: Welcome back – Q4 2013 results presentation
Welcome back – Q4 2013 results presentation 6 February 2014 Save the date – capital markets day 20 March 2014
Slide 17: Q&A
O&A wemgs
Slide 18: Appendix
APPENDIX wemgs
Slide 19: Vessel Charters and Yard Stays
VESSEL CHARTERS AND YARD STAYS BOA Thalassa BOA Galatea Atlantic Guardian EM Leader EM Express Firm Charter Dec. 2014 July 2015 1 March 2016 3 December 2013 Standby in Bergen at no cost to EMGS. Options 2 x 1 year 2 x 1 year 3 x 12 months Optional 1-, 3-, 6- or Optional 3-, 6- or 12-month charters 1
Slide 20: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT USD million QUARTER ENDING NINE MONTHS ENDING 30.09.2013 30.09.2012 30.09.2013 30.09.2012 Contract sales 21.5 39.0 71.2 141.5 Multi-client sales 2.1 4.2 28.5 14.3 Total revenues 23.6 43.2 99.7 155.8 Charter hire, fuel and crew expenses 8.9 17.9 30.9 56.1 Employee expens
Slide 21: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION USD million PERIOD ENDING 30.09.2013 30.09.2012 ASSETS Goodwill 14.4 14.4 Multi-client library 31.0 10.0 Intangible assets 3.8 4.7 Property, plant and equipment 25.9 27.8 Assets under construction 18.3 13.1 Total non-current assets 93.5 70.0 Trade receiva
Slide 22: Consolidated Statement of Cash Flow
CONSOLIDATED STATEMENT OF CASH FLOW USD million NINE MONTHS ENDING 30.09.2013 30.09.2012 Net cash flow from operating activities 39.1 23.9 Net cash flow from investing activities (43.3) (27.6) Net cash flow from financial activities 10.9 (2.7) Net increase in cash 6.6 (6.4)
Slide 23: Largest Shareholders (as of 13 November)
LARGEST SHAREHOLDERS (AS OF 13 NOVEMBER) SHAREHOLDER SHARES HOLDING 1 SKAGEN GLOBAL 10 124 112 5.08 % 2 CLEARSTREAM BANKING S.A 8 671 710 4.35 % 3 ODIN OFFSHORE 8 291 085 4.16 % 4 ODIN NORGE 7 838 224 3.93 % 5 FIDELITY FUNDS 7 194 845 3.61 % 6 VERDIPAPIRFONDET DNB SMB 6 425 299 3.22 % 7 MOMENTUM INV
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