Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2007 Earnings Presentation
23 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 28, 2007
Slide 1: EMGS Q3 2007
EMGS Q3 2007 CEO Terje Eidesmo and CFO Svein Knudsen Hotel Continental 28 November 2007
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: Group highlights
Group highlights Record quarterly revenues and substantial earnings increase Improving utilization and margins Developing interest in new scanning product Expanding market through new shallow water technology Enhancing execution through new COO
Slide 4: Financials
“a. - Financials
Slide 5: Financial highlights
Financial highlights USD million Revenue increase of 28% over Q2 Improved cost efficiency Repaid USD 20 million loan
Slide 6: Consolidated income statement
Consolidated income statement USD million Quarterly Year to date Full year Q3 2007 Q3 2006 2007 2006 2006 Revenues 48.4 21.8 112.1 77.4 117.7 Charter hire, fuel and crew expenses 25.3 13.7 68.9 41.5 62.7 Employee expenses 7.3 4.2 25.2 9.7 18.2 Other operating expenses 7.0 4.8 16.7 9.7 16.2 EBITDA 8.
Slide 7: Operations
Operations
Slide 8: Operational development
Operational development M/V Siem Mollie (vessel #5 operational from September 2007) M/V Relume From North Sea to Canada From Australia to South China Sea M/V Stad Angler M/V Atlantic Guardian M/V Sasha Overall utilization rose to 71% due to a more favourable vessel allocation
Slide 9: Managing growth through experience
Managing growth through experience Focus on strengthening management team and fine tuning organization ahead of further growth Successful hiring of high quality specialists Roar Bekker appointed new COO: • 23 years in Schlumberger • International leader competence • Extensive operational experience
Slide 10: Investing for future growth
Investing for future growth EMGS to take delivery of two purpose-built vessels in 2008 Additional capacity through new equipment sets Fleet expansion key to improved utilization
Slide 11: Market and technology
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Slide 12: Acquisition of KMS Technologies
Acquisition of KMS Technologies Exclusive worldwide rights to patented technology in shallow water Acquisition opens up a huge additional market Already tested in Egypt and ready for business Strengthening EMGS as the market leader in EM
Slide 13: Summary
Summary Continued top line growth reflecting market demand Improved bottom line as scalability occurs Society of Exploration Geophysicists Expanding market through new technology Strong market leadership Increasing acceptance of technology EMGS remains confident on market potential
Slide 14: Outlook
Outlook Strong interest in technology and increasing client base Challenging Q4: USD 135 million secured for 2007 Repositioning of fleet and expansion into new markets Well positioned for Q1 2008
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Condensed statement of cash flow
Condensed statement of cash flow USD million Year to date Full year 2007 2006 2006 Net cash flow from operating activities (13.2) (0.6) (4.0) Net cash flow from investing activities (22.1) (11.0) (14.4) Net cash flow from financial activities 81.0 10.4 36.3 Net profit (loss) (13.0) 6.9 (25.3)
Slide 18: Condensed balance sheet
Condensed balance sheet USD million Year to date Year to date Year ended 30 Sept 2007 30 Sept 2006 31 December 2006 ASSETS Cash and cash equivalents 66.2 1.4 20.5 Trade receivables 41.8 18.8 31.9 Other current assets 22.3 5.7 8.8 Total current assets 130.2 25.9 61.2 Intangible assets 3.3 1.5 2.4 Pro
Slide 19: Current patent position
Current patent position Three patents granted in Norway in November 2007 The current portfolio includes: - Over 180 cases in 18 patent families - Over 70 patents granted or applications accepted for grant - More than 30 countries worldwide EMGS has a strong patent position
Slide 20: Current fleet
Current fleet Date of refurbishment Charter expiration Siem Mollie August 2007 August 2010 Relume August 2006 August 2008 Sasha January 2007 March 2010 Atlantic Guardian February 2007 January 2011 Stad Angler January 2007 April 2008
Slide 21: A global platform
A global platform Trondheim Stavanger Oslo London Paris Houston Kuala Lumpur Rio
Slide 22: Ownership (as of November 23)
Ownership (as of November 23) Shareholder Shares Holding 1 WARBURG PINCUS 46,307,312 62.80% 2 UBS AG, LONDON BRANCH 2,394,078 3.25% 3 STATE STREET BANK AND TRUST CO. 2,161,513 2.93% 4 JPMORGAN CHASE BANK 1,658,600 2.25% 5 BRUHEIM, BJARTE 1,460,302 1.98% 6 WILLIAM BLAIR INTERNATIONAL GROWTH 1,404,050
Slide 23: Ownership (as of November 23)
Ownership (as of November 23) Shareholder Shares Holding 16 FID. FUNDS-EUR.SM. COMP ./SICAV 356,990 0.48% 17 JP MORGAN CHASE BANK 352,600 0.48% 18 SIS SEGAINTERSETTLE AG 307,916 0.42% 19 MORGAN STANLEY AND CO. INTL. PLC 296,524 0.40% 20 FORTIS BANK LUXEMBOURG S.A. 269,417 0.37% 21 WILLIAM BLAIR INTE
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