19 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 8, 2018
Slide 1: 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 2: Fourth Quarter 2017 Results
FOURTH QUARTER 2017 RESULTS. Oslo, 8 February 2018 CEO Christiaan Vermeijden, CFO Hege A. Veiseth
Slide 3: Revenues and costs down
Revenues and costs down 2017 Full Year Financials • Revenues of USD 35.9 million (down USD 44.5 million FY 2016) • EBITDA of USD 2.1 million (up from negative USD 8.9 million FY 2016) • Reduction of OPEX to USD 52.7 million (USD 89.6 million in FY 2016) 2017 Sales & Operations • Dominated by multi-c
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Fourth quarter performance
Fourth quarter performance Key financial metrics Quarterly development (USD million) • Revenues 15 Revenues • USD 11.3 million 10 12 • Mainly multi-client revenues in Norway and 5 11 10 11 Canada 4 0 • EBITDA Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Contact sales Multi-client revenues • USD 0.4 million EBITDA
Slide 6: Operational costs
Operational costs Quarterly operational cost base development* (USD million) Comments 15 • Operational costs base in Q4 of USD 11.6 million -19% 0.7 - Thalassa back on charter 1 October 2017 10 1.4 - Capitalised multi-client and JIP mobilisation expenses of USD 0.7 million 4.0 • Cost control 5 - Red
Slide 7: Decrease in free cash in Q4
Decrease in free cash in Q4 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 6.5 million to USD 16.5 million • Trade receivables increased by USD 3.7 million to USD 11.1 million • USD 0.6 million in interest-payment on interest bearing debt of USD 30.6 millio
Slide 8: Multi-client book value of USD 16.3 million
Multi-client book value of USD 16.3 million Multi-client library – NBV (USD million) Comments 30 • Reduction of book value from USD 18.2 million 25 previous quarter to USD 16.3 million 20 • Investments of USD 0.3 million 15 - Barents Sea 10 5 • Amortisation of USD 1.9 million - Straight-line amortis
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Hardware, Imaging & Interpretation improvements
Hardware, Imaging & Interpretation improvements Exploration Solution Rock physics Value 3D sensitivity scanning modeling proposition Well log tool Prospect evaluation 3D Gauss-Newton 3D TTI anisotropy Up-down separation Updated regularization Deep Blue More powerful BFGS source model update JIP sea-
Slide 11: Troll & Fram: CSEM data acquired in 2005 vs 2014
Troll & Fram: CSEM data acquired in 2005 vs 2014 2005: Troll 2D survey with the 1,000 amp source 2014: Troll & Fram 3D survey with 7,200 amp source Troll Represents CSEM Data and the bump is the EM anomaly CSEM data overlaid 3D semsic data. High temperature color represent EM anomalies
Slide 12: Are there more CSEM anomalies hiding here?
Are there more CSEM anomalies hiding here?
Slide 13: Operations and selection of current opportunities
Operations and selection of current opportunities Norway: • CSEM part of several work commitments following the APA awards • Upcoming event: 24th round awards in Q2 2018 • DeepBlue providing the potential to open up new markets for CSEM Global: • Thalassa committed in Indonesia through mid February
Slide 14: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Work awarded in Q4 2017 will keep the Thalassa 25 busy through the middle of Q1 2018 • Prospects being developed in- and outside of Norway 20 to keep the vessels utilized • Some early signs that MC ma
Slide 15: Revenues and costs down
Revenues and costs down 2017 Full Year Financials • Revenues of USD 35.9 million (down USD 44.5 million FY 2016) • EBITDA of USD 2.1 million (up from negative USD 8.9 million FY 2016) • Reduction of OPEX to USD 52.7 million (USD 89.6 million in 2016) 2017 Sales & Operations • Dominated by multi-clie
Slide 16: Questions?
aw emegs Questions? Spot the difference.
Slide 17: Consolidated Income Statement
Consolidated Income Statement Q4 2017 Q4 2016 2017 2016 Amounts in USD 1 000 Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 965 7,953 2,583 21,797 Multi-client pre-funding 2,787 579 13,256 579 Multi-client late sales 6,869 3,438 19,132 22,151 Other revenue 667 0 886 0 Total
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2017 31 December 2016 31 December 2017 31 December 2016 Amounts i n USD 1 000 Unaudited Audited Amounts i n USD 1 000 Unaudited Audited ASSETS EQUITY Non-current assets Capital and reserves attributable to equity holders Share capital, share p
Slide 19: Largest shareholders as of 7 February
Largest shareholders as of 7 February # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 21,869,450 23.92 2 PERESTROIKA AS 20,560,847 22.49 3 MORGAN STANLEY & CO. LLC 18,074,938 19.77 4 BÆKKELAGET HOLDING AS 3,010,00 3.29 5 SPORTSMAGASINET AS 2,575,001 2.82 6 ROSENFONN INVESTERING 1,500,000 1.64 7