Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q2 2015 Earnings Presentation
21 slides from Electromagnetic Geoservices Asa's earnings presentation, Aug 20, 2015
Slide 1: Second Quarter 2015 Results
SECOND QUARTER 2015 RESULTS. Oslo, 20 August 2015 CEO Bjarte Bruheim, CFO Svein Knudsen
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: Overview second quarter 2015
Overview second quarter 2015 • Sales from multi-client data library in Barents Sea • Cost reduction program implemented • Letter of award in Malaysia • Re-start work for Pemex • Received permits for multi-client surveys in Mexico
Slide 4: Second quarter operational overview
Second quarter operational overview BOA Galatea Atlantic Guardian MC in US Gulf of Mexico MC in Norway BOA Thalassa EM Leader MC in Asia Contract for BG Group Offhire from 15 May
Slide 5: 2015 multi-client investments
2015 multi-client investments 2015 multi-client investment (USD million) • Tiddlybank/ Nordkapp US GoM - 50/50 cooperation with TGS - 2.6 USD million revenues YTD - Relevant for 23rd licensing round • Hammerfest/ Froan/ Nyk Norway - Prefunding/ late sale of ~2.3 USD million YTD - Relevant for APA ro
Slide 6: Key financials
Key financials Revenues and revenues/costs per vessel month (USD Million) • 10.5 vessel months in Q2 60 6 • Utilisation of 68%, with 5% contract and 63% MC allocation 50 5 40 4 • Costs include provisions related to cost reduction measures 30 3 • Multi-client investment of USD 14.0 million in the qua
Slide 7: Capital Structure
Capital Structure Balance sheet as at 30.06.15 (USD million) • Cash at USD 39.5 million, up from USD 38.9 million at 31 March 250 - Trade receivables decreased by USD 22.2 million to USD 16.3 million - Trade payables increased by USD 7.1 million 200 to USD 16.5 million USD 47.9 million 150 • Impairm
Slide 8: Cash development
Cash development 70 60 -4.9 7.1 2.2 50 -14.0 22.2 -3.2 40 30 3.3 -25.9 20 38.2 14.4 38.5 10 0 Cash at 31.3 Net loss Goodwill Depreciation and Change trade Change trade Change other Other changes MC investment Other investing Financial activities Cash at 30.6 impairment amortisation receivables payab
Slide 9: Cost reduction program implemented
Cost reduction program implemented • Phase I of cost reduction program implemented in January • Phase II implemented late June with key elements: - Reduction of global headcount (including consultants) by 20% - Reduction of vessel capacity from three to four vessels, EM Leader laid-up - Reduction of
Slide 10: Market and outlook
Market and outlook Spot the difference.
Slide 11: Current market situation
Current market situation Order book as of 30 June After close of quarter • Challenging market - Contract negotiations delayed - Catious spending from oil companies affects EM demand - Low visibility in some regions - Market outlook hard to predict, high uncertainty • Progress on adoption - Good resp
Slide 12: Contract opportunities and projects for 2H 2015
Contract opportunities and projects for 2H 2015 Norway: - MC library performing well - 23rd licensing round, close Dec - Annual APA round, close Sept Canada: - Data available for sale, licensing round in November - No further MC investment in 2015 US: Malaysia: - Attractive US GoM MC investments - L
Slide 13: Strategic multi-client library hubs
Strategic multi-client library hubs Canada Norway ~2,500 sq.km ~60,000 sq.km ~USD 9 million invested ~USD 75 million invested ~USD 1.4 million sold ~USD 194 million sold Customer potential: 10-20 Customer potential: 30-40 US GoM ~10,400 sq.km ~USD 28 million invested ~USD 8 million sold Customer pot
Slide 14: Summary and outlook
Summary and outlook • Increasingly exposed to the challenging market in Q2, resulting in lower utilisation and contract volumes • Still, good progress on adoption with high interest from oil companies and authorities • Multi-client projects expected to yield good return on investments • Cost reducti
Slide 15: Questions?
Questions? Spot the difference.
Slide 16: Appendix
SPOT THE DIFFERENCE
Slide 17: Income statement
Income statement USD million Quarter ending Half year ending Year ending 30.06.2015 30.06.2014 30.06.2015 30.06.2014 31.12.2014 Contract sales 4.8 35.5 26.9 82.0 137.2 Multi-client sales 7.3 7.0 17.4 21.9 60.8 Total revenues 12.1 42.5 44.3 103.8 198.0 Charter hire, fuel and crew expenses 3.7 13.9 11
Slide 18: Financial position
Financial position USD million ASSETS 30.06.2015 31.03.2015 31.12.2014 Goodwill - 14.4 14.4 Deferred tax asset 3.0 3.0 3.0 Multi-client library 51.2 40.1 33.8 Other intangible assets 4.6 3.0 3.2 Property, plant and equipment 14.3 16.8 19.2 Assets under construction 34.0 33.2 31.2 Financial assets 2.
Slide 19: Cash flow
Cash flow USD million Quarter ending Half year ending 30.06.2015 30.06.2014 30.06.2015 30.06.2014 Net cash flow from operating activities 18.4 10.7 46.6 10.1 Net cash flow from investing activities (17.1) (17.1) (31.7) (26.8) Net cash flow from financial activities (1.0) (1.1) (1.5) 1.0 Net increase
Slide 20: Largest shareholders as of 19 August
Largest shareholders as of 19 August Shareholder Shares Holding 1 SIEM INVESTMENTS INC 22,926,866 11.48 2 PERESTROIKA AS 18,889,449 9.46 3 Morgan Stanley & Co. MS & CO LLC MSCO CLI 18,576,200 9.30 4 ODIN OFFSHORE 9,651,299 4.83 5 CLEARSTREAM BANKING 8,160,165 4,08 6 ODIN NORGE 7,522,609 3.77 7 VERDI
Slide 21: Vessel charters
Vessel charters BOA Thalassa BOA Galatea Atlantic Guardian EM Leader Firm Charter December 2015 July 2016 December 2017 December 2016 Options 3 x 1 year 2 x 1 year North Sea Shipping Vessel owner BOA Offshore BOA Offshore Seatrans Rates Fixed Fixed Fixed Flexible
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