Slide 1: SeaBird Exploration Fourth Quarter Presentation
SeaBird Exploration Fourth Quarter Presentation 26 February 2014 CEO Dag Reynolds 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: Financial highlights
Financial highlights Quarter four financial results • Revenues of $37.2 million ($51.9 million Q3 2013) • EBITDA of $3.9 million ($13.2 million Q3 2013) Year end 2013 • Revenues of $177.8 million ($163.3 million 2012) • EBITDA was $31.9 million ($38.6 million 2012) 3
Slide 4: Operational observations
Operational observations Quarterly observations • Contract revenues down from previous quarter in light of reduced fleet utilization • Fleet utilization for the period was 56% down from 86% in the third quarter – Global demand for seismic services substantially weaker than prior quarters • A number
Slide 5: Financial summary
Financial summary
Slide 6: Historical operating comparison
Historical operating comparison Revenues EBITDA 60 (USD millions) (USD millions) 51.9 14 13.2 50 48.6 12 11.1 40.2 40 37.2 34.9 10 30 8 6.8 48.5 50.1 6 20 3.7 3.9 34.5 36.2 32.1 4 10 2 0 0 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Contract revenue Multi-client revenue Capital expen
Slide 7: Vessel utilization
Vessel utilization Vessel utilization 2013 • Q4 contract utilization at 53%, 1% 100% 5% 6% 3% 3% down from 82% in Q3 13% 90% 7% • Multi-client investment in line with 20% 4% 15% 4% prior period 80% 41% – Q4 multi-client utilization of 3% 9% 70% compared to 4% for Q3 22% 60% • Aquila Explorer complet
Slide 8: Income statement
Income statement CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended Year ended 31 December 31 December All figures in USD millions (except for EPS) 2013 2012 2013 2012 Contract 32.1 34.5 166.8 141.6 Multi-client 5.1 0.4 11.0 21.7 Total revenues 37.2 34.9 177.8 163.3 Cost of sales (28.5) (24.4) (
Slide 9: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended Year ended 31 December 31 December All figures in USD millions 2013 2012 2013 2012 Profit/(loss) before income tax (8.5) (2.7) (8.0) (9.3) Non cash items 10.7 10.1 36.7 45.7 Paid income tax (1.8) (0.4) (3.3) (1.1) Working
Slide 10: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 31 December All figures in USD millions (except for equity ratio) 2013 2012 Property, plant and equipment 122.8 130.8 Multi-client library 7.1 3.4 Other non-current assets 1.3 1.3 Inventories 4.4 3.9 Trade receivables 24.7 33.1
Slide 11: High multi-client sales during the quarter
High multi-client sales during the quarter Multi-client revenues by quarter (USD millions) • Multi-client sales in the quarter of 6 5.1 $5.1 million 5 4.0 – $3.5 million related to late sales 4 from pre 2013 surveys 3 1.8 2 • Multi-client investment was $1.4m million in the quarter 1 0.4 0.1 – Compl
Slide 12: Funded debt review
Funded debt review COVENANT RESTRICTIONS USD millions AP +60 Equity ratio Cash 31 December 2013 $0.6 30.5% $12.2 Restrictions 31 December 2013 < $2.5 25.0% ≥$10.0 Funded debt profile (USD millions) 120 108.1 99.3 100 9.3 14.9 9.3 80 14.0 60 40 83.9 76.0 20 0 Face value Book value Bond loan - SBX 03
Slide 13: Interactions with the capital market
Interactions with the capital market • Equity private placement completed during Q4 2013 – 12.0 million new shares at a subscription price of NOK 3.00 per share – Total gross proceeds NOK 36.0 million ($5.9 million) • The company was in compliance with all covenants as of 31 December 2013 • Debt and
Slide 14: Operational review
Operational review
Slide 15: Segment operating activity
Segment operating activity 2D/3D contract revenues Contract revenues by region (USD millions) (USD millions) 60 60 50 50 35.7 27.7 18.4 40 40 22.9 30 23.5 18.7 30 18.4 12.7 22.4 10.4 20 20 12.2 23.7 22.4 18.9 10.8 10 17.5 10 10.9 11.0 12.8 13.4 10.9 9.7 5.2 4.6 8.0 0 0 Q4 2012 Q1 2013 Q2 2013 Q3 201
Slide 16: Contracts update
Contracts update 2D vessels • Aquila Explorer working for oil major in New Zealand • Harrier Explorer active in the North Sea; well positioned for 2014 summer season • Hawk Explorer and Northern Explorer conducting a survey in East Africa that will keep the vessels active until mid Q2 2014 • Munin E
Slide 17: Q4 multi-client developments
Q4 multi-client developments North Sea • Harrier Explorer completed a 1,500 km survey – First significant data acquisition to take place in this area for over a decade – Optimized data quality and resolution as a result of broadband acquisition and processing technique as well as extreme deep tow (6
Slide 18: Multi-client library
Multi-client library 2013 surveys Pre 2013 surveys Ongoing survey 18
Slide 19: Market developments
Market developments
Slide 20: Challenging Q4 for the seismic industry
Challenging Q4 for the seismic industry “Demand in the seismic market has fallen away in the fourth quarter, dropping down to an average of just 67 vessels in November, the lowest point since October 2009” Source: Petrodata January 2014 “With a steady fleet size of 142 vessels these fluctuations in
Slide 21: Seismic market expected to continue to expand
Seismic market expected to continue to expand • Seismic spending estimated to show moderate growth, albeit at a slower rate • Seismic survey tenders expected to stabilize; delays possible – Local political situation – Environmental permits – Regional climates • Growing source market is contributing
Slide 22: Day rates remain stable
Day rates remain stable 2D High end • Day rates are largely expected to (USD thousands) 140 remain in line with current market 120 $110 $110 $110 $110 $110 100 • Pricing during the fourth quarter 80 $90 $90 $90 was stable 60 $70 $70 40 20 0 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Low High 3D Low end 3D Med en
Slide 23: Market outlook
Market outlook • Experiencing improvement in demand – Improving backlog • Europe, Africa and the Middle East accounting for a substantial portion of current vessel utilization – Seasonal recovery – Four vessels active in this region in Q1 2014 • Asia Pacific is expected to continue to be a core geog
Slide 24: Taking 2D to the next level
Taking 2D to the next level Cable profiles ; iP ee ee 5 15 NS Cable depth [m] 45 65 t . " uy r i 0) 1000 2000 3000 4000 5000 Offset [m] 6000 SeaBird Exploration
Slide 25: SeaBird going forward..
SeaBird going forward.. • Smarter Multi-Client • Several areas of significant cost cuts have been identified • Establishing the role as the 2D market leader • Refinancing of debt is high on the agenda 25