Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2007 Earnings Presentation
27 slides from Electromagnetic Geoservices Asa's earnings presentation, May 25, 2007
Slide 1: emgs quarterly presentation
emgs quarterly presentation First quarter 2007 CEO Terje Eidesmo CFO Svein Knudsen Hotel Continental May 25, 2007
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: Agenda
Agenda Group highlights Financial highlights Market development The seabed logging industry Financials Outlook Appendix
Slide 4: Group highlights
Group highlights Strong market development Breakthrough for seabed logging on the Norwegian Continental Shelf Vessels, equipment and people to support growth plan through 2008 Capital for future growth secured Listing on Oslo Stock Exchange Expect second quarter of USD 35 March 30, 2007 to 40 millio
Slide 5: Financial highlights
Financial highlights Q1 revenues of USD 25.9 million Q1 influenced by non-recurring cost items of USD 8.6 million EBITDA of minus USD 8.0 million
Slide 6: Market development
Market development
Slide 7: A fast growing oil segment
A fast growing oil segment More and more companies adopt the USD million seabed logging technology 450 400 Anticipated market potential USD 200 350 million in 2007 300 250 In emgs’ opinion the market could 200 potentially double annually beyond 150 2007 100 50 Seabed logging can reach the size of 0
Slide 8: Long term customer relations
Long term customer relations Accumulated no of clients 40 36 35 29 30 25 23 20 14 15 10 10 5 5 3 1 0 2000 2001 2002 2003 2004 2005 2006 2007
Slide 9: The Aker Exploration contract
The Aker Exploration contract Minimum value of USD 30.8 million Option for USD 6.7 million in 2007 Annual options contract for 2008-2011 Maximum value of USD 196 million Barents Sea, Norwegian Sea and North Sea A complete seabed logging package – from pre-survey to interpretation
Slide 10: The Rocksource contract
The Rocksource contract Minimum value USD 12 million 25 survey lines (maximum 50) Approximately three months Large upside potential Seabed technology will be used by Rocksource in early exploration phase
Slide 11: The seabed logging industry
The seabed logging industry
Slide 12: Evolving exploration beyond seismic
Evolving exploration beyond seismic Seismic The emgs solution • Detects structure but not fluid content • Remote detection of offshore hydrocarbons • Long turnaround time – 6+ months • Rapid turnaround – days ~25% exploration > 90% technical success rate success rate • High uncertainty before drilli
Slide 13: Technology leader with control of vital resources
Technology leader with control of vital resources All hardware, software and methodology in-house Ownership of all products Highly experienced group of geologist and geophysicists More than 30 employees with Ph.D and MSc Collaboration with a range of research institutes and organizations R&D agreeme
Slide 14: The seabed logging applications
The seabed logging applications Prospect finding Prospect ranking Prospect/field appraisal Relevant to frontier, young and Relevant to known prospects Relevant to known prospects mature basin exploration & fields Single or multiple survey lines Coarse grid of survey lines crossing a prospect Fine gr
Slide 15: Operational experience and a fully integrated offering
Operational experience and a fully integrated offering Data Pre-survey processing Output and Contracting Surveying modeling and advice interpretation
Slide 16: A Global Platform
A Global Platform Trondheim Stavanger Oslo London Paris Houston Rio Kuala Lumpur
Slide 17: Proven track record
Proven track record Over 200 commercial surveys Southeast Asia Over 40 oil companies More than 90% success rate Demonstrated ability to growth Norway (Troll)
Slide 18: Emgs' strong and unique position
Emgs’ strong and unique position Breakthrough for seabed logging technology with a strong and growing market Strong proprietary position across the value chain, from concept to technology and application Unique operational experience and years ahead of competition Highly profitable and scalable busi
Slide 19: Financials
Financials
Slide 20: Condensed Income Statement
Condensed Income Statement USD Million Quarterly Year to date Full year Q1 2007 Q1 2006 2007 2006 2006 Revenues 25.9 25.6 25.9 25.6 117.7 Charter hire, fuel and crew expenses 18.8 13.4 18.8 13.4 62.7 Employee expenses 11.1 2.7 11.1 2.7 18.2 Other operating expenses 3.9 2.3 3.9 2.3 16.2 EBITDA (8.0)
Slide 21: Balance Sheet
Balance Sheet USD Million Quarter ended Quarter ended 31 Year ended March 2007 31 March 2006 31 December 2006 ASSETS Cash and cash equivalents 12 834 2 578 20 485 Trade receivables 24 309 15 751 31 910 Other current assets 138 606 2 856 8 767 Total current assets 175 750 21 185 61 162 Intangible ass
Slide 22: Condensed Statement of Cash Flow
Condensed Statement of Cash Flow USD million Quarterly Full year Q1 2007 Q1 2006 2006 Net cash flow from operating activities (3 001) (5 731) (4 017) Net cash flow from investing activities (4 087) (2 216) (14 352) Net cash flow from financial activities (563) 7 976 36 305 Net profit (loss) (7 651)
Slide 23: Outlook
Outlook Continue to develop new contracts to secure the 2007 revenue goals and a good start of 2008 Summer season looks promising with the fifth vessel for mobilization in Q3 Revenue expected to be USD 160- 170 million in 2007 Seabed logging breakthrough with a strong market outlook 1997 2007 2017
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Management team
Management team Terje Eidesmo President and CEO CFO QHSE Svein Knudsen Jørn Hausmann Global Sales Global Marketing Odd Tjelta Ken Feather Administration R&D Jo Temre Svein Ellingsrud Geology & Asia Pacific Operations North Business Unit South Business Unit Geophysics Business Unit Erik Skogen Odd Tj
Slide 27: Ownership (as of May 14)
Ownership (as of May 14) Shareholder Shares Holding Warburg Pincus 46,307,312 63.05% State Street Bank & Trust 2,477,031 3.37% Bjarte Bruheim 1,410,302 1.92% JP Morgan Chase 1,214.100 1.65% Fortis Bank Luxembourg 1,196,058 1.63% Morgan Stanley & Co. 1,035,011 1.41% Investors Bank and Trust Company 1
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