19 slides from Electromagnetic Geoservices Asa's earnings presentation, Feb 9, 2017
Slide 1: Fourth Quarter 2016 Results
FOURTH QUARTER 2016 RESULTS. Oslo, 9 February 2017 CEO Christiaan Vermeijden, CFO Hege A. Veiseth
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: Revenues and costs down
Revenues and costs down 2016 Full Year Financials • Revenues of USD 44.5 million (down 45% from FY 2015) • EBITDA of negative USD 8.9 million (up 47% from FY 2015) Operations • Adjusted the organisation and operational cost level • Maintained a solid presence in key geographies • Good performance on
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 25 • Revenues of USD 12.0 million 20 15 • Vessel utilisation of 89% 14.7 10 - Proprietary work in Malaysia (35%) 5 0 - Multi-client projects in Norway (54%) Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Contact sales Multi
Slide 6: Reduced operational costs
Reduced operational costs Quarterly operational cost base development* (USD million) Comments • Operational costs base of USD 14.3 million 40 - Capitalised multi-client expenses of USD 2.2 million 35 - Provision for onerous contract of USD 1.4 million 30 25 - Write down of obsolete inventory of USD
Slide 7: Free cash development
Free cash development Quarterly free cash development (USD million) Comments 20 18 • Relatively small net decrease in free cash of USD 1.7 million to USD 14.1 million 16 • Cash and cash equivalents at end of Q4 of 14 USD 18.9 million, incl restricted cash 12 Cash covenant of bond loan • Restricted c
Slide 8: Multi-client book value of USD 24.3 million
Multi-client book value of USD 24.3 million Overview of book value of multi-client library (USD million) Comments 16 15.0 • Uplift/late sales revenues of USD 3.4 million 14 • Prefunding revenues of USD 0.6 million 12 • Investments of USD 2.2 million 10 - Barents Sea - Preparations for the APA and 24
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Fourth quarter vessel operations
Fourth quarter vessel operations BOA Thalassa Atlantic Guardian In operation, In operation, MC Q4 activity proprietary survey, Projects in the Barents offshore Malaysia Sea, Norway Vessel owner BOA SBL North Sea Shipping Firm Charter 1 October 2019 1 October 2021 Improved terms, fixed, with Comments
Slide 11: The 24th Round continued…
The 24th Round continued… • Nominations made on or before 30 November 2016. • The announcement of the 24th licensing round is expected before summer 2017. • EMGS is in consultation with partners and customers expanding the library in anticipation. • Healthy interest shown in existing data and expans
Slide 12: JIP test results sneak preview…
JIP test results sneak preview… • Prototype testing successfully executed Conventional Resistivity [ohm. during the summer of 2016 on the 400.0 equipment 250.0 Norwegian Continental Shelf 160.0 100.0 63.0 40.0 • Test results reviewed during Q3/Q4 25.0 16.0 10.0 2016 and original objectives met 6.3 4
Slide 13: Selection of current opportunities
Selection of current opportunities Norway: • Coverage in the Barents Sea expanded in H2 2016 in anticipation of the nominations and announcements during the 24th licensing round • Nominations deadline: November 2016 • Announcements expected: June 2017 Canada: • MC data covering Flemish Pass basin av
Slide 14: Market update
Market update Comments Order backlog - limited earnings visibility 50 • Early signs of improvement noted as earlier dialogues are converted in pricing requests related to work in 45 Norway, the Americas and Africa. Prospect 40 development in APAC ongoing. 35 • Notable difference when compared to the
Slide 15: Summary and outlook
Summary and outlook 2016 Full Year Financials • Revenues of USD 44.5 million (down 45% from FY 2015) • EBITDA of negative USD 8.9 million (up 47% from FY 2015) Operations • Adjusted the organisation and operational cost level • Maintained a solid presence in key geographies • Good performance on exe
Slide 16: Questions?
aw emegs Questions? Spot the difference.
Slide 17: Consolidated Income Statement
Consolidated Income Statement Q4 2016 Q4 2015 2016 2015 Amounts in USD 1 000 Unaudited Audited Unaudited Audited Operating revenues Contract sales 7,953 9,001 21,797 45,008 Multi-client pre-funding 579 - 579 3,546 Multi-client late sales 3,438 11,498 22,151 32,586 Total revenues 11,970 20,499 44,527
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 31 December 31 December 31 December 2016 2015 2016 2015 Amounts in USD 1 000 Unaudited Audited Amounts in USD 1 000 Unaudited Audited ASSETS EQUITY Non-current assets Capital and reserves attributable to equity holders Multi-client library 24,
Slide 19: Largest shareholders as of 8 February
Largest shareholders as of 8 February # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 7,844,249 23.92 2 PERESTROIKA AS 6,993,857 21.33 3 MORGAN STANLEY & CO. LLC 4,507,948 13.75 4 BÆKKELAGET HOLDING AS 1,010,00 3.08 5 STATOIL PENSJON C/O JP MORGAN 701,458 2.14 6 SPORTSMAGASINET AS 575,001 1.75