Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2021 Earnings Presentation
14 slides from Electromagnetic Geoservices Asa's earnings presentation, May 12, 2021
Slide 1: Q1 2021 Results
Q1 2021 RESULTS Oslo, 12th May 2021 Bjørn Petter Lindhom, CEO Anders Eimstad, CFO
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: Q1 2021 Operational and financial highlights
Q1 2021 Operational highlights • Successful mobilisation of the Atlantic Guardian after extended period in cold-stack • Release of USD 7.3 million held in pledged account • Payment of all past due invoices related to Pemex project received • Contract award for proprietary survey in Southeast Asia Fi
Slide 4: Operations, Market and Outlook
Operations, Market and Outlook
Slide 5: Mexico Multi-Client project completed
Mexico Multi-Client project completed • Fully prefunded Multi-Client 3D CSEM project completed on time • Significant challenges due to the ongoing Covid-19 pandemic • Minimal technical downtime despite vessel being cold-stacked for a long period of time • Limited weather-related downtime Needs to be
Slide 6: EMGS company update
EMGS company update • Transformation to low-cost setup completed • Atlantic Guardian back in operation after nearly one year in cold-stack • Successful execution of the Mexico Multi-Client project is a testament to the motivation, dedication and experience of the EMGS staff and contractors • Current
Slide 7: Emerging Marine Minerals market
Emerging Marine Minerals market • Marine minerals or seabed minerals have been identified as a potential supply source for minerals needed in the energy transition • Norwegian Parliament has enacted a law governing the exploration and exploitation of seabed minerals and the NPD has announced an inte
Slide 8: Commercial CSEM system for marine mineral detection
Commercial CSEM system for marine mineral detection • Electromagnetic methods are widely used in the onshore mining business to locate ore deposits • The use of CSEM to map marine mineral deposits has been demonstrated on research surveys • However, these systems are not fit for large scale explorat
Slide 9: Financial review
awemegs Spot the difference.
Slide 10: First quarter 2021 performance: Development in revenues and EBITDA
First quarter 2021 performance I Development in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues 11 Revenues 12 • USD 1.6 million total revenue 10 8 8 • USD 1.4 million other revenue 6 4 4 2 2 • Vessel utilisation of 6% 2 0 • Atlantic Guardian mobilised, trans
Slide 11: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q1 21 of USD 3.1 million 4.8 • USD 340 thousand lower than Q4 20 • Charter hire, fuel and crew expense remains low 10 • Increase in vessel and office lease expense in the first quarte
Slide 12: Increase in free cash in Q1 2021
Increase in free cash in Q1 2021 Quarterly free cash development (USD million) Comments • Net increase in free cash of USD 7.9 million to USD 12.1 million • Change in other working capital includes USD 7.3 million released from the pledge account • Change in trade receivables positively affected by
Slide 13: Summary
awemegs Spot the difference.
Slide 14: Summary
Summary • Improved cash position • Release of USD 7.3 million held in pledged account • Payment of all past due invoices related to Pemex project received • Completion of multi-client project in Mexico • EMGS expects to recognize approximately USD 7 million in 2nd Quarter • Contract award for propri
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