Electromagnetic Geoservices Asa · OSL:EMGS

Electromagnetic Geoservices Asa — Q4 2010 Earnings Presentation

13 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 10, 2011

  1. Slide 1: EMGS ASA – Fourth Quarter & Full Year Presentation 2010

    EMGS ASA – FOURTH QUARTER & FULL YEAR PRESENTATION 2010 CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 10 February 2011 DISCLAIMER This quarterly presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that cou

  2. Slide 2: Highlights; 2010 – A Turning Point

    HIGHLIGHTS Continued revenue growth • Revenues of USD 27.2 million • Negative EBITDA of USD 2.4 million Key projects for repeat customers • 3D EM campaign for Shell: Brunei, Philippines, New Zealand • Global campaign for major oil company Major contracts awarded for H1 2011 • Mozambique: USD 8.5 mil

  3. Slide 3: Financial Overview: Financial Highlights Q4

    FINANCIAL OVERVIEW FINANCIAL HIGHLIGHTS Q4 Financial results Revenues (USD Million) • Revenues at USD 27.2 million 35 30 • Negative EBITDA of USD 2.4 million 25 • Cash position: USD 39.6 million 20 15 Vessel utilisation at 74% 10 5 • BOA Thalassa: 67% 0 • BOA Galatea: 81% Q4'09 Q1'10 Q2'10 Q3'10 Q4'

  4. Slide 4: Operational Cost Level; Bridge Analysis (Extraordinary Items Q4)

    OPERATIONAL COST LEVEL Adjusted operational cost level Operational costs (USD Million) • Capitalization of multi-client costs 35 • BOA Thalassa’s mobilisation to Mexico 30 capitalized: USD 1.3 million in Q3 • Credit of USD 3.4 million from Schlumberger 25 in Q3 20 15 Quarterly cost base 2011 10 • US

  5. Slide 5: Capital Structure

    CAPITAL STRUCTURE Assets (USD million) Equity and liabilities (USD million) 140.0 140.0 Effect of conversion. All else equal 120.0 120.0 100.0 100.0 80.0 80.0 60.0 60.0 40.0 40.0 20.0 20.0 0.0 0.0 31.12.2009 31.12.2010 31.12.2011 (E) 31.12.2009 31.12.2010 31.12.2011 (E) Non-current assets excl. cash

  6. Slide 6: Vessel Activity & Backlog; Update on Contract with PEMEX

    VESSEL ACTIVITY & BACKLOG Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec BOA Thalassa • Mexico, PEMEX BOA Galatea • Malaysia, Petronas • Brunei, Shell • Philippines, Shell • Australia, Woodside • New Zealand, Shell • Steaming • Mozambique • Steami

  7. Slide 7: De-risking a Portfolio of Prospects; Adding Value in Exploration and Production

    DE-RISKING A PORTFOLIO OF PROSPECTS Pg Prospect portfolio Pre-EM Prospect portfolio Post-EM 100% EM Positives 50% EM Negatives 0% Drilling success : No EM Drilling success : EM Positives Pg 100% 25-35% 50-70%* Discovery Dry hole 50% Undrilled 0% * Hesthammer et al First Break, Jan 2010 (Study of 86

  8. Slide 8: Expanding the Application Window Through Customer Collaboration; Market Update

    EXPANDING THE APPLICATION WINDOW THROUGH CUSTOMER COLLABORATION Creates new market opportunities • Improved shallow water technology launched in 2010 • Several shallow water surveys performed of late (New Zealand, Nigeria, Malaysia, UK) JIP: Next generation EM System • See deeper targets • Higher re

  9. Slide 9: Summary and Outlook

    SUMMARY AND OUTLOOK SUMMARY Continued revenue growth Financial position strengthened Significant contracts awarded 75% contract coverage in 2011 Partnering with customers to enhance industry adoption and technology development

  10. Slide 10: Outlook; Q&A

    OUTLOOK Backlog currently stands at USD 155 million Growing opportunity pipeline PEMEX contract has triggered interest from other NOCs Expect to re-mobilise the mobile acquisition set in H1 2011 Foresee Positive Net Income for 2011 and improved balance sheet through the year Q&A

  11. Slide 11: Appendix: Consolidated Income Statement

    APPENDIX CONSOLIDATED INCOME STATEMENT USD million YEAR ENDING YEAR ENDING 31.12.2010 31.12.2009 31.12.2010 31.12.2009 Revenues 27.2 7.0 75.4 59.0 Charter hire, fuel and crew expenses 14.9 13.4 32.9 55.2 Employee expenses 9.9 8.5 30.5 30.2 Other operating expenses 4.8 3.8 14.5 13.3 EBITDA (2.4) (18.

  12. Slide 12: Consolidated Balance Sheet; Statement of Cash Flow

    CONSOLIDATED BALANCE SHEET USD million PERIOD ENDING 31.12.2010 31.12.2009 ASSETS Intangible assets 7.8 2.9 Property, plant and equipment 23.1 32.1 Assets under construction 9.1 10.5 Investment in joint venture 3.0 3.0 Restricted cash 7.3 - Total non-current assets 50.4 48.5 Trade receivables 20.6 9

  13. Slide 13: Largest Shareholders (as of 8 February)

    LARGEST SHAREHOLDERS (AS OF 8 FEBRUARY) SHAREHOLDER SHARES HOLDING 1 WARBURG PINCUS 61 873 434 40.262% 2 ODIN NORGE 7 509 924 4.88 % 3 ODIN OFFSHORE 3 860 000 2.51 % 4 DNB NOR SMB 3 700 000 2.41 % 5 JPMORGAN CHASE BANK 3 249 182 2.11 % 6 SISSENER SIRIUS ASA 3 100 000 2.02 % 7 SUNDT AS 2 200 000 1.43

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