Slide 1: SeaBird Exploration Second Quarter Presentation
SeaBird Exploration Second Quarter Presentation 19 August 2016 CEO Christophe Debouvry CFO Nils Haugestad
Slide 2: Forward-looking statements
Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an
Slide 3: Agenda
Agenda • Highlights • Business review • Financial review • Outlook • Q&A 3
Slide 4: Highlights
Highlights
Slide 5: Highlights
Highlights Financial results • Revenues of $22.2 million ($26.0 million Q1 2016) • EBITDA of $6.3 million ($7.4 million Q1 2016) Quarterly observations • 70% (vs 90% in Q1) of the active vessels on TGS Gigante project in Mexico and two vessels re-allocated to Western Europe during the quarter • Two
Slide 6: Business review
Business review
Slide 7: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region (USD millions) (USD millions) 35 35 30 26.6 30 26.0 26.6 26.0 25 23.1 23.1 - 21.4 25 21.4 0.2 18.8 3.3 0.1 18.8 20 20 15 15 11.8 26.6 26.0 9.3 26.6 26.0 10 21.3 22.8 21.3 19.9 10 5 5 9.4 7.1 0 0 0.1 0.1 - - 0.1 Q2
Slide 8: SeaBird seismic fleet
SeaBird seismic fleet August 2016 Harrier Explorer Norway Osprey Explorer United Kingdom Hawk Explorer Mexico Northern Explorer Mexico Aquila Explorer Mexico Active SeaBird fleet • Munin Explorer warm-stacked in NSA from Q3-15 • Voyager Explorer cold-stacked in APAC from Q4-14 8
Slide 9: Backlog
Backlog • Backlog as of 30 June of $23 million consisting of: • Remaining portion of TGS Gigante project in Mexico • North West Europe region YTD contract awards: – Two source projects in the North Sea1), 2) – 2D survey in North West Europe3) 1) Announced on February 24 2) Announced on May 2 3) Anno
Slide 10: Continued focus on cost reductions
Continued focus on cost reductions Recurring cost of sales1) (including capitalized multi-client costs) (USD millions) Cost reduction status 40.0 35.4 • Improved project and vessel planning; 35.0 32.7 supply chain improvements 30.0 25.0 • Crew cost flexibility initiatives 20.0 17.0 implemented; more
Slide 11: Fleet review
Fleet review • Continuing active management of fleet according to market conditions ‒ Reviewing vessel capacity ‒ May stack additional vessels if contract coverage is insufficient • Cold-stacked since Q4-14, Voyager Explorer will be redelivered at expiry of bareboat charter (August 2016) • With an o
Slide 12: Financial review
Financial review
Slide 13: Historical operating comparison
Historical operating comparison Revenues EBITDA 30 (USD millions) (USD millions) 27.1 10 8.3 26.0 7.4 25 23.2 8 6.8 22.2 6 4.6 6.3 19.6 20 4 4.6 3.9 3.7 15 2 26.6 26.0 23.1 0 10 21.4 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 18.8 -2 5 -4 -6 0 -8 (6.5) Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Contract revenues Multi-client
Slide 14: Vessel utilization
Vessel utilization Vessel utilization 100% • Q2 contract utilization of 82%, down 7% 90% 13% 10% 10% from 90% in Q1 2016 7% 8% 80% 7% ‒ Four active vessels working in the NSA 19% region 70% 60% • Harrier was utilized on a multi-client 50% 100% project in North West Europe during 90% 40% 86% the quar
Slide 15: Income statement Q2 2016
Income statement Q2 2016 CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended Six months ended 30 June 30 June All figures in USD millions (except EPS) 2016 2015 2016 2015 Contract 21.4 18.8 47.4 41.8 Multi-client 0.8 0.7 0.8 1.9 Total revenues 22.2 19.6 48.2 43.8 Cost of sales (12.9) (20.0) (27.9
Slide 16: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended Six months ended 30 June 30 June All figures in USD millions 2016 2015 2016 2015 Profit/(loss) before income tax 0.4 (16.5) 2.4 47.3 Restructuring gain - (0.4) - (66.4) Other non-cash items 3.2 16.2 6.1 20.3 Paid income ta
Slide 17: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of As of 31 December 30 June All figures in USD millions (except for equity ratio) 2016 2015 2015 Property, plant and equipment 62.6 73.0 67.4 Multi-client library 2.7 10.4 3.3 Other non-current assets 0.1 0.0 - Inventories 2.9 3.
Slide 18: Multi-client update
Multi-client update Multi-client revenues (USD millions) 2.0 • Multi-client revenues in the quarter of 1.5 $0.8 million ‒ Revenues predominantly prefunding for Q2 1.0 0.8 0.7 2016 project 0.5 0.5 0.7 0.1 0.3 0.0 0.1 • Multi-client investment was $0.7 million1) 0.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2
Slide 19: Debt profile
Debt profile Funded debt profile Covenants (USD millions) 45 • Leverage ratio < 2.5 40 35.9 • Unrestricted cash > $5.0 million 35 2.8 33.1 1.4 30 2.3 2.8 1.4 • In compliance with both covenants as of 2.1 30 June 2016 25 20 Aggregate maturities of loans and borrowings 15 29.3 26.8 USD millions Year o
Slide 20: Update on provisions
Update on provisions Provisions USD millions Beginning balance 1 Apr 2016 10.2 Incurred costs (2.3) Changes in provision estimate (booked to cost of sales) 0.4 Interest expense 0.2 Ending balance 30 June 2016 8.5 • Provisions mainly related to stacked vessels on onerous long-term lease contracts • A
Slide 21: Outlook
Outlook
Slide 22: Outlook
Outlook • Despite recent improvement in the oil price, oil exploration spending expected to remain depressed and is likely to continue to negatively impact seismic activity at large in the foreseeable future • Global seismic demand continued to be weak in the second quarter and weak tender activity
Slide 23: SeaBird Exploration
SeaBird Exploration