Fjord Defence Group Asa · OSL:DFENS
Fjord Defence Group Asa — Axxis Geo Solutions — Q1 2020 Earnings Presentation
19 slides from Fjord Defence Group Asa's earnings presentation, May 27, 2020
Slide 1: First quarter 2020
First quarter 2020 Axxis Geo Solutions Lee Parker, CEO and Nils Haugestad, CFO 27 May 2020
Slide 2: Disclaimer
Disclaimer • The information in this presentation has been prepared by Axxis Geo Solutions ASA (“AGS” or the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presenta
Slide 3: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 3
Slide 4: Axxis Geo Solutions in brief
Axxis Geo Solutions in brief Axxis Geo Solutions’ competitive edge in the OBS market • An ocean bottom node (OBN) seismic service company • Multi-client and contract seismic • Experienced management and organizational core • Headquarter at Lysaker, Norway • Listed on Oslo Axess (ticker AGS) Asset li
Slide 5: Flexible and cost efficient asset light leasing model
Flexible and cost efficient asset light leasing model Vessels Nodes Crews ▪ Flexibility on vessel type and ▪ Lease nodes based upon demand ▪ Possible to adjust number of crews capacity ▪ Multiple node suppliers can be used ▪ Flexibility proven in the North Sea ▪ Adjust fleet capacity to survey backl
Slide 6: Continued focus on existing field and reserves
Continued focus on existing field and reserves • Appraisal • Enhanced Oil recovery • Locations with high ROCR O&G companies demands high resolution data • Maximising production / minimizing costs • Infrastructure led exploration, quick return on capital • An attractive alternative to “high-end” towe
Slide 7: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 7
Slide 8: Q1 Highlights
Q1 Highlights Full quarter operations • In production of the OBN survey in the Middle East • Completed the Brazil source operation campaign with Neptune Naiad • Delivery of milestone Northern Utsira OBN project data in the North Sea • Received LOI from Equinor for a North Sea contract Neptune Naiad
Slide 9: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 9
Slide 10: AGS reporting going forward
AGS reporting going forward Segment reporting (internal reporting) IFRS reporting • Gives a conventional representation of underlying • Due to IFRS15 revenue recognition, revenues operational performance and value creation related to multi-client projects are postponed until projects are ready to be
Slide 11: First quarter segment financial review
First quarter segment financial review First quarter Segment P&L In USD million • Revenues mainly driven by the project in Egypt of USD 42.4 million and the Brazilian campaign of MUSD 2.5 million • Cost of sales related to the project in Egypt and the Brazilian campaign • EBITDA of USD 13.5 million
Slide 12: Financials segment overview
Financials segment overview In USD million In USD million Revenue EBITDA and EBIT Sequential performance 50 46 20 17 15 • Segment revenue derives from 45 13 11 both contract and multi-client 41 8 10 40 activity 35 0 -1 0 • High level of fluctuation quarter 30 -3 26 -10 -6 by quarter 25 20 -20 15 11
Slide 13: Financing and segment financial position
Financing and segment financial position • Amortization of Multi-client library of USD 0.5 million In USD million • Investment in node handling system of USD 0.026 million Assets position - Segment reporting 100 93 • Total current assets of USD 38 million: 89 90 83 80 • Account receivables of USD 10
Slide 14: Financing and segment financial position cont.
Financing and segment financial position cont. In USD million • Equity net of USD 12 million Equity and liabilities - Segment reporting • Non-current liabilities zero as of March • Interest bearing debt reclassed to short-term debt due to not 100 fulfilled covenants to Eksportkreditt 90 • Total liab
Slide 15: Restructuring
Restructuring • Company is continuing discussions with key creditors - Overall terms mutually agreed - Plan will significantly strengthen working capital and improve liquidity • Discussion expected to be completed shortly 15
Slide 16: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 16
Slide 17: Ongoing operations Egypt, Gulf of Suez Q1-Q2 project
Ongoing operations Egypt, Gulf of Suez Q1-Q2 project • The survey commenced early January after testing completed • Requires modern OBN imaging and processing techniques to unlock further hydrocarbon potential • The area is well known to AGS management and is expected to yield future opportunities •
Slide 18: Backlog and outlook
Backlog and outlook 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Egypt Brazil Short Streamer Committed Egypt North Sea North Sea Tenders North Sea Egypt India West Africa Pipeline GOM / Brazil North Sea ~ USD 30 million backlog as of Q2 18 and >USD 500 million tenders / pipeline 2020 / 2021
Slide 19: US Office 14511 Old Katy Road Suite 150
US Office Norway Office 14511 Old Katy Road Strandveien 50 Suite 150 1366 Lysaker Houston, TX 77079 Norway United States +47 480 95 555 +1 281 810 2550 19