Slide 1: SeaBird Exploration First Quarter Presentation
SeaBird Exploration First Quarter Presentation 6 May 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: Highlights
Highlights Financial results • Revenues of $33.7 million ($38.7 million Q4 2013) • EBITDA of $10.2 million ($3.9 million Q4 2013) Quarterly observations • Earnings increased from previous quarter – Higher utilization and multi-client investment • Vessel utilization for the first quarter was 76% – Ma
Slide 4: Financial summary
Financial summary
Slide 5: Historical operating comparison
Historical operating comparison Revenues EBITDA 70 (USD millions) 16 (USD millions) 60 14 13.2 50.0 50.9 11.5 12 50 10.2 38.7 10 40 37.6 33.7 8 30 49.9 49.1 6 20 3.9 33.6 33.6 4 3.1 30.5 10 2 0 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Contract revenues Multi-client revenues Capi
Slide 6: Vessel utilization
Vessel utilization 1% 100% • Q1 contract utilization of 64%, up 3% 5% 6% 13% from 53% in Q4 90% 7% 24% 4% 15% 4% • Increase in multi-client activity 80% 41% – 12% in Q1 2014 compared to 3% 70% 12% for Q4 2013 22% 60% – Geo Pacific operating on a multi- 3% client survey throughout Q1 50% • Transit ti
Slide 7: Income statement
Income statement CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended Year ended 31 March 31 December All figures in USD millions (except for EPS) Restated Restated 2014 2013 2013 Contract 30.5 49.9 166.3 Multi-client 3.2 0.1 11.0 Total revenues 33.7 50.0 177.3 Cost of sales (19.7) (34.1) (127.8)
Slide 8: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended Year ended 31 March 31 December All figures in USD millions Restated Restated 2014 2013 2013 Profit/(loss) before income tax (0.4) 2.4 (8.3) Non-cash items 10.5 8.8 36.7 Paid income tax (0.4) (0.3) (3.3) Working capital ch
Slide 9: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of As of 31 31 March December All figures in USD millions (except for equity ratio) Restated Restated 2014 2013 2013 Property, plant and equipment 119.6 132.3 122.8 Multi-client library 12.3 2.7 7.1 Other non-current assets 1.4 1.
Slide 10: Multi-client update
Multi-client update • Multi-client revenues in the Multi-client revenues by quarter (USD millions) quarter of $3.2 million 6 5.1 – $2.8 million related to Geo Pacific 5 3D survey 4.0 4 3.2 – Remaining sales primarily relate to pre-2013 surveys 3 1.8 2 1 0.1 • Multi-client investment was $7.8 0 milli
Slide 11: Review of financing
Review of financing CONVENANT RESTRICTIONS USD millions AP + 60 Equity ratio Cash 31 March 2014 $1.4 28.6% $16.0* Restrictions 31 March 2014 <$2.5 25.0% ≥$10.0 *Includes $4.0 million of restricted cash Funded debt profile (USD millions) 120 107.1 8.3 99.5 100 8.3 14.9 14.3 80 60 40 83.9 76.9 20 0 Fa
Slide 12: Operational review
Operational review
Slide 13: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region 60 (USD millions) (USD millions) 60 50 50 6.5 12.2 40 40 18.3 24.6 30 4.5 29.7 16.6 8.6 30 10.1 11.0 10.9 10.0 20 14.3 14.0 20 11.8 23.7 12.0 6.2 18.0 10 20.3 20.4 10 13.7 14.8 11.0 13.5 10.7 14.3 4.6 7.1 0 0 Q1 20
Slide 14: Contract developments
Contract developments 2D vessels • Aquila Explorer continues to operate in the Australasia region • Osprey Explorer commenced a 5,800km 2D survey in South America • Hawk Explorer and Northern Explorer commenced a joint 20,000km survey in East Africa • Harrier Explorer active on a source contract in
Slide 15: Mexico's untapped potential
Mexico’s untapped potential • Energy reform; legislative changes allowing foreign investments in oil & gas sector • Increased foreign interest for License Round Zero • Limited seismic data available – Only 20% of offshore acreage covered – Anticipating increased demand for 2D and source capacity ‘Up
Slide 16: Frontier markets: East Africa project
Frontier markets: East Africa project Project dynamics SeaBird capabilities • 2D acquisition of up to • Ability to effectively operate in a 20,000km by Hawk Explorer challenging operating environment and Northern Explorer over a – High production rates three month period – Minimum downtime – No inci
Slide 17: Pricing environment
Pricing environment 2D High end • Increase in 2D day rates during Q1 (USD thousand) 140 2014 $125 120 $110 $110 $110 $110 • 3D rates remain stable at 2013 100 levels 80 $90 $90 $90 $90 60 $70 • Pricing environment is expected to 40 remain stable through the first half 20 of 2014 0 Q1 13 Q2 13 Q3 13
Slide 18: Market outlook
Market outlook • Increased 2D and source market demand for the first half of 2014 • Improved backlog – Current demand needs to continue before we feel comfortable that the market has fully stabilized • Niche 3D market has been slower to recover • Increased lead time to secure prefunding may delay ne