Thalassa Holdings Ltd · LSE:THAL
Thalassa — Investor Presentation (May 2013)
27 slides from Thalassa's investor presentation, May 2013
Slide 1: Investor Presentation May 2013
INVESTOR PRESENTATION May 2013 Exploration … and Beyond… working to increase the value and output of active reservoirs
Slide 2: Disclaimer
Disclaimer • The content of this presenta5on has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on this presenta5on for the purposes of engaging in investment ac5vity may expose an individual to a significant risk of losi
Slide 3: Introduction
Introduc:on • Thalassa is a seismic provider to the offshore market at the forefront of innovation. Clients include BP, Spring Energy (recently acquired by Tullow) and Statoil. • Our specialist / specialised technology puts us at the leading edge in: • 4D Life of Field Seismic • Oil and gas explorat
Slide 4: What Thalassa Does?
What Thalassa Does? • Thalassa provides bespoke seismic solu5ons to enhance oil recovery • Areas of specialist ac5vity: • 4D Life of Field Seismic (exis5ng fields) • Marine 2D Towed Streamer (explora5on) • High Resolu5on 3D Towed Streamer (explora5on, shallow target) • Geophysical project management
Slide 5: What is Seismic Data Acquisition?
What is Seismic Data Acquisi:on? Towed Streamer 2D/3D Seismic Ocean Bo@om 4D Seismic Fibre op5c to Shore Seabed seismic receivers Cross -‐ reservoir Seismic Data • Used for reservoir monitoring • Cable towed behind vessel along with a • To extend the life and increase the single source yield • Used
Slide 6: Thalassa's Competitive Advantages
Thalassa’s Compe::ve Advantages • Portable modular seismic source system • Provides bespoke solu5ons to E&P majors • 10 years experience in LoFS 4D opera5ons • High end precision engineering • Deployment capability and experience in challenging loca5ons 6
Slide 7: Seismic Data Acquisition Market
Seismic Data Acquisi:on Market • Market es5mated to be growing at 10-‐15% per annum • Discovering new fields and enhancing recovery becoming increasingly important • Statoil looking to enhance underwater field recovery to c60% compared to an industry average of 35% • 2D/3D Towed Streamer solu5on enab
Slide 8: Portable Modular Seismic Source (PMSS™)
Portable Modular Seismic Source (PMSS™) • Provides the seismic source -‐ the “seismic boom” • Comprises modular units designed: – for temporary use on plakorm supply vessels – to be transportable for mobilisa5on worldwide • Able to provide bespoke solu5ons, including layout, design, PMSSTM installa
Slide 9: Significant Projects
Significant Projects BP (North Sea) SMG (Arc:c) • Long term WGP • Installa5on of PMSS™ and rela5onship with BP da5ng streamer on board ice back to 2003 breaker vessel to conduct • 3.5 year (7 survey) contract 2D survey in Russian Arc5c commenced 2010 • Most recent contract • Provision & opera5on of c
Slide 10: Statoil Contract
Statoil Contract Contract 1 • To provide seismic acquisi5on services over the Snorre and Grane oil fields in the Norwegian sector of the North Sea • Ini5al fixed term of 5 years with op5on to extend by 2 further terms of 2 years each • First survey is scheduled to commence on 1 October 2013 over the S
Slide 11: Financials - Revenue & PBT
Financials -‐ Revenue & PBT Revenue $m’s PBT $m’s $16.0 $1.4 $1.2 $14.0 $1.0 $12.0 $0.8 $10.0 $0.6 $8.0 $0.4 $6.0 $0.2 $4.0 $0.0 2008 2009 2010 2011 2012 $2.0 -‐$0.2 -‐$0.4 $0.0 2008 2009 2010 2011 2012 FY FY FY FY 2009 2010 2011 2012 EPS (cents) 2.0 6.0 4.0 10.0 EPS (pence) 1.0 4.0 2.6 6.0 11
Slide 12: Financials - Revenue & PBT (underlying)
Financials -‐ Revenue & PBT (underlying) Operational Revenue $m’s Underlying PBT $m’s $16.0 $1.4 $14.0 $1.2 $1.0 $12.0 $0.8 $10.0 $0.6 $8.0 $0.4 $6.0 $0.2 $0.0 $4.0 2008 2009 2010 2011 2012 -‐$0.2 $2.0 -‐$0.4 $0.0 -‐$0.6 2008 2009 2010 2011 2012 Revenue from operational activity excludes gains f
Slide 13: Financials - Balance Sheet
Financials -‐ Balance Sheet Net cash (31 Dec 12) $2.5m Debt (31 Dec 12) $nil BV / Share (31 Dec 12) $0.87 Net Assets ($m's) Net Cash ($m's) 12 3 10 2.5 8 2 6 1.5 4 1 0.5 2 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 13
Slide 14: Strategy
Strategy • Organic Growth – New marine seismic contracts – Further reduce LoFS and seabed explora5on costs – Focus on poten5al clients with major proven reserves where significant capital and opera5onal expenditure is expected (LoFS) – Retain key staff members and hire new talent – Acquire further ope
Slide 15: Summary
Summary • Growing market with significant growth drivers • Niche operator providing bespoke solu5ons • Experienced management, opera5ons and R&D teams • P-‐Cable JV extends Group’s technology and target markets • Thalassa has significant compe55ve advantages in its chosen markets • Established custom
Slide 16: Appendices
Appendices • Background • Corporate Structure • Key Management • Industry Landscape • Key Sta5s5cs • Historical Financials 16
Slide 17: Background
Background 1994 • WGP business incorporated 2003 • WGP commences development work with BP on LoFS 2007 • Thalassa founded 2008 • AdmiUed to AIM • First PMSS™ equipment acquired and assembled for $5.8m 2010 • Group receives first order for PMSS™ for the BP Valhall project 2011 • New contract win from
Slide 18: Corporate Structure
Corporate Structure Thalassa Holdings Ltd (Holding Company) 100% WGP Group Ltd 100% 100% 100% 50% WGP Energy WGP Explora:on Ltd WGP Technical WGP Survey Ltd Services Ltd (Acquired on 16 Nov 2011) Services Ltd • Thalassa is a Bri5sh Virgin Island ("BVI") interna5onal business company, incorporated an
Slide 19: Key Management
Key Management Duncan Soukup, Chairman: Mr Soukup has over 25 years of investment experience. Having worked in investment banking for 10 years (1984-‐1994), laUerly with Bear Stearns as managing director in charge of the company's non-‐US equity business, Mr Soukup set up his own investment manage
Slide 20: Key Management: Non-Executive Directors
Key Management: Non-‐Execu?ve Directors Graham Cole, Non-‐Execu:ve Director: Mr Cole specialises in advising growth companies on public offerings, capital raising, merger and acquisi5on strategy. He has been involved in over 60 public flota5ons (in London, on the Official List and AIM, and in Europe,
Slide 21: Industry Landscape
Industry Landscape Marine Acquisi5on Services Data Processing Containerised Source Ocean BoUom Cable Ocean BoUom Node ElectroMag / CSEM 4D (Ocean BoUom Towed Streamer Transi5on Zone Shallow Water Seismic (Cable/ Source Vessel Geotechnical Systems Company Quoted / Unquoted Node)) 2D 3D 4D WesternGeco
Slide 22: Key Statistics
Key Sta:s:cs • Market AIM • Ticker symbol Reuters: THAL.L Bloomberg: THAL:LN • Number of Shares in issue -‐ Basic 16,355,522 • Number of Shares in issue -‐ Diluted 16,555,522 • Number of Shares held in treasury 1,462,000 • Share Price – 52 week range £1.91 -‐ £0.26 • Current Share Price £1.475 •
Slide 23: Share Price - pence
Share Price -‐ pence THAL share price – 5 year chart 23
Slide 24: Financials - P&L ($m's)
Financials -‐ P&L ($m’s) FY08 FY09 FY10 FY11 FY12 Revenue -‐ -‐ 0.4 2.4 14.0 Cost of Sales -‐ -‐ -‐0.1 -‐ -‐9.1 Gross Profit -‐ -‐ 0.3 2.5 4.9 Gross Margin n/a n/a 79.5% 101.3% 35.3% Admin Expenses -‐0.3 -‐0.5 -‐0.5 -‐1.2 -‐2.9 Deprecia5on / Impairment -‐ -‐ -‐ -‐0.9 -‐0.6 Impairm
Slide 25: Financials - Balance Sheet ($m's)
Financials -‐ Balance Sheet ($m’s) FY08 FY09 FY10 FY11 FY12 Total non-‐current assets 5.8 7.6 7.7 7.4 8.3 Inventory -‐ -‐ -‐ -‐ 0.1 Receivables 0.1 0.4 0.1 0.6 0.6 Cash 1.2 0.1 0.5 2.0 2.5 Total Current Assets 1.3 0.5 0.6 2.6 3.2 Trade & other payables 0.1 0.4 0.6 0.9 1.2 Shareholder Loan -‐
Slide 26: Financial Ratios
Financial Ra:os FY08 FY09 FY10 FY11 FY12 No. of shares in issue – basic (m’s) 8.5 6.5 7.2 9.7 11.9 Profit/Loss per share – basic (cents) -‐3.0 2.0 8.0 4.0 12.0 No. of shares in issue – diluted (m’s) 10.7 8.9 9.6 11.9 12.1 Profit/Loss per share – diluted (cents) -‐3.0 2.0 6.0 3.0 10.0 Investment Valu
Slide 27: www.thalassaholdingsltd.com www.wgp-group.com
www.thalassaholdingsltd.com www.wgp-‐group.com 27