Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2025 Earnings Presentation
15 slides from Electromagnetic Geoservices Asa's earnings presentation, May 13, 2025
Slide 1: Q1 2025 Results
Q1 2025 RESULTS Oslo, 13th May 2025 Bjørn Petter Lindhom, CEO Anders Eimstad, CFO
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: Q1 2025 Operational summary
Q1 2025 Operational summary • Completed the first of two proprietary acquisitions in India • Started mobilization for the second proprietary acquisitions in India Financial summary of the quarter • Revenues of USD 10 million in the quarter • EBITDA of USD 2.7 million and adjusted EBITDA of USD 2.0 m
Slide 4: Operations and Market
Operations and Market
Slide 5: Operations
Operations • Completed first India contract with revenues of USD 10 million • Started mobilization for 2nd contract in India • Acquisition ongoing with expected completion beginning of June • Vessel to depart India after completion
Slide 6: New subsea construction business platform
New subsea construction business platform Introduction to the transaction About Siem Day – 250t OSCV • EMGS has established new business platform within the offshore subsea construction market • Acquisition of OSCV vessel Siem Day for USD 108.9m • Financed with 5-year bareboat charter to minimize up
Slide 7: Supportive market backdrop
Supportive market backdrop Significant call on new developments Strong growth for key subsea drivers Liquids supply/demand balance Subsea tree installations +45% mb/d 434 110 107 2024 XMTs split by age 106 Age 30-39 Age 40-49 105 Age 20-29 Age 0-4 106 395 99 102 99 100 95 Age 15-19 5,581 XMTs 361 95
Slide 8: Subsea construction fleet market expected to remain strong
Subsea construction fleet market expected to remain strong 2025 construction vessel forecast 2027 construction vessel forecast 85% utilization 89 86% utilization 74 20 76 64 20 69 54 2025 supply 2025 demand 2027 supply 2027 demand 400t 250t Market for construction vessels expected to see strong grow
Slide 9: Deal fundamentals
Deal fundamentals Transaction details Financing • Acquisition of OSCV vessel Siem Day for USD 108.9m • Initial payment of USD 10.9 million (10%) due at bareboat charter commencement • 5-year financing via bareboat charter at attractive rate to EMGS from Siem Day II AS to be owned 80% by the Siem Gro
Slide 10: Financial review
Financial review
Slide 11: First quarter 2025 performance I Development in revenues and EBITDA
First quarter 2025 performance I Development in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues Revenues 15 13.8 • USD 10.0 million total revenue • USD 9.9 million in contract and other revenue 10 9.7 10.0 • USD 150 thousand in multi-client late sales 5 0.2 •
Slide 12: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 8 • Operational costs base in Q1 25 of USD 8.0 million 6 • USD 3.3 million higher than Q4 24 5.6 • USD 1.5 million in transit costs were capitalised in the fourth quarter of 2024. These costs were recognized in the
Slide 13: Decrease in free cash in Q1 2025
Decrease in free cash in Q1 2025 Quarterly free cash development (USD million) Comments 30 • Net decrease in free cash of USD 3.1 million to USD 25 6.0 million • Adjusted EBITDA of USD 2.0 million 20 • Trade receivables increased by USD 8.1 million as compared to the previous quarter 15 • Trade paya
Slide 14: Q&A
Q&A
Slide 15: Q&A
Q&A Please e-mail questions to: emgs@emgs.com
Electromagnetic Geoservices — Q1 2025 Earnings Presentation on 6ix