Sed Energy Holdings Plc · OSL:ENH
Sed Energy — SeaBird Exploration — Q1 2021 Earnings Presentation
34 slides from Sed Energy's earnings presentation, May 25, 2021
Slide 1: SeaBird Exploration First quarter 2021 presentation
SeaBird Exploration First quarter 2021 presentation 25 May 2021 Chairman, Ståle Rodahl CEO, Gunnar Jansen CFO, Erik von Krogh
Slide 2: Forward-looking statements
Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an
Slide 3: Agenda
Agenda 1 Rebranding Q 1 2 0 2 1 - VA LUE BY BUSI N ESS A REA Operational update (EST ) 2 •Marine Minerals •Seismic SEISMIC 25% 3 Financial review MARINE MINERALS 75% 4 Summary 5 Q&A 3
Slide 4: Green Energy Group
Green Energy Group Energy is our roots. Green is our future. 4
Slide 5: We build sustainable businesses
We build Mission sustainable businesses 5
Slide 6: Strategy
Capitalize on • Entrepreneurial culture and spirit • Marine minerals and energy market know-how • Research and M&A • Funding access • 6500 shareholders Strategy Start-and-build Buy-and-build Transform-and-build DaaS 6
Slide 7: DaaS
•Environmental impact •Social costs •Geopolitics Minerals •Lower cost of capital •«Super-ore» • Lifetime extension DaaS • Profitability Disruption as a Strategy •Asset-light •Growth through alliances & partnerships Seismic •Flexible charters •Lean&cost efficient services •Leverage up on key competen
Slide 8: Organization
Organization BOARD OF DIRECTORS OSLO STOCK EXCHANGE Initiatives GREEN ENERGY Business Development GROUP FINANCE ADMIN Capital allocation Finance, admin 2021 2022 100% XX % 55% XX % XX % SEABIRD GREEN MINERALS BUSINESS AREA X BUSINESS AREA Y Partners Fulmar Consolidation Partners Petrel STOCK EXCHANG
Slide 9: Relocation from Cyprus to Norway
SeaBird Exploration Plc is domiciled in Cyprus Connections to Norway are stronger Relocation from Listed on the Oslo Stock Exchange & Administration and board located in Tax resident in Norway and subject to Norwegian bank finance Norway; all operations out of Norway Norwegian taxation Cyprus to Nor
Slide 10: Conversion to SE and relocation
Conversion to SE and relocation Two step process with SE model maintains the expected completion legal entity November 2021 • Simplifies the process • Resolve conversion to SE in towards the stock Annual General Meeting 25 exchange (notification rather July 2021 than new • Resolve relocation from pr
Slide 11: Highlights Q1 2021
Highlights Q1 2021 Key financial & operational figures • Revenues of $3.7 million ($25.3 million Q1 2020) • EBITDA of -$0.5 million ($1.8 million Q1 2020) • 33% fleet utilization • Equity ratio of 64% Major events • Completed listing of Green Minerals AS • Distributed shares in Green Minerals to SBX
Slide 12: Green Minerals
sf GREEN MINERALS Enabling the green shift Io] GREEN MINERALS
Slide 13: Creating an industry bellwether
1 Introduction 2 3 4 Creating an industry bellwether 3 Well-defined roadmap and string of newsflow Near term updates: − Partner/cooperation agreements; LOI with Oil States Industries (UK) Ltd signed on March 23rd − Additional key hires, targeting 4 PhD`s giving impetus to our industry leading 2 po
Slide 14: Massive global demand for new metals sources
1 2 Market backdrop 3 4 Massive global demand for new metals sources Commentary >$1trn in key metals capex needed by 2035 Cumulative capex: current commitments and AET-2 scenario Massive need for new source of metals as the world requirements, USDbn electrifies and digital technology becomes avail
Slide 15: Emerging copper supply gap
1 2 Market backdrop 3 4 EMERGING COPPER SUPPLY GAP Global copper market balance Copper supply gap vs price S Source: Goldman Sachs Investment Research 15
Slide 16: Impact of minerals to 1bn electric cars
1 2 Market backdrop 3 4 Traditional mining vs deep sea mining Onshore mining Deep sea mining Change C02 equivalent emissions (Gt.) 1.5 0.4 -70% Impact of minerals to 1bn electric cars Ore use (Gt.) 25 6 -75% Deforestation (Sqm) 66,000 5,200 -92% Solid waste (Gt.) 64 0 -100% Freshwater ecotoxicity (1
Slide 17: Partners and affiliations
1 2 3 Company overview 4 Partners and affiliations Onshore processing Exploration Offshore production Offshore logistics facility To be named Potential universal partners Battery Copper end- Academia producers users 17
Slide 18: Aspirational targets (II)
1 2 3 4 The road ahead Aspirational targets (II) Commentary Key metrics - 30MT deposit example One Green Minerals full scale production system: Metric Unit − Flow rate: min 5-8000 tonnes/day Mineral resources Million tons 30 − Utilisation: min 200+ days/year Enrichment (CuEq) % 5.3 − Annual ore pr
Slide 19: Seismic market and operational review
Seismic market and operational review 19
Slide 20: Flexible fleet: niche streamer and source
Flexible fleet: niche streamer and source 5-7 vessels capable of 2D and source operations EAGLE EXPLORER FULMAR PETREL VERITAS VOYAGER NORDIC EXPLORER EXPLORER EXPLORER VIKING EXPLORER Status Owned Owned Owned Flex TC Flex TC Flex TC Source Yes Yes NA Yes Yes Yes 2D Yes Yes NA Yes Yes Yes Streamer S
Slide 21: Vessel utilization
Vessel utilization Vessel utilization 100% 80% Q1 2021 utilization of 33% 60% 44 % Utilization includes vessels that the 40% 33 % company carries 30 % 28 % 29 % costs on 20% 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 21
Slide 22: Segment operating activity
Segment operating activity Contract revenue by survey type (USD millions) 25,3 25 3,9 20 17,1 8,7 15 2,8 Q1 revenues relates 1,5 to the OBN source 10 contract for Eagle 7,6 Explorer 12,7 12,5 5 4,4 2,6 3,5 1,8 3,2 3,0 3,5 1,8 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 3D 2D Other 22
Slide 23: Operational update
Operational update Two vessels in operation during the quarter Q1 2021 VESSEL JAN JAN JAN JAN FEB FEB FEB FEB M AR M AR M AR M AR Eagle Explorer (US GoM) EAGLE • OBN source contract in GoM • Very good performance – minimal downtime PETREL Petrel Explorer (North Sea) • Lay-up in Norway • Mobilized fo
Slide 24: Market trends
Market trends Ocean bottom seismic • Oil & gas companies’ focus on increased oil recovery on producing fields, as well as near-field exploration Quarter to date • Source vessel market remains competitive, but global fleet reduced Proprietary 2D surveys • Energy security emerging as a demand driver i
Slide 25: Financial review
Financial review 25
Slide 26: Key figures
Key figures Unaudited figures Q1 2021 Q1 2020 FY 2020 Revenues 3 680 25 341 46 537 EBITDA (533) 1 814 (1 399) EBIT (2 177) (734) (15 954) Profit/(loss) (1 972) (334) (14 773) Earnings per share (diluted) (0,07) (0,01) (0,55) Utilization 33 % 44 % 34 % Cash and cash equivalents 3 563 4 081 6 231 Cash
Slide 27: Historical operating comparison
Historical operating comparison Revenues EBITDA (USD millions) (USD millions) 25 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 3 20 2 1,8 1 0,0 15 0 25,3 -1 ( 0,6) ( 0,5) 10 17,1 -2 -3 5 ( 2,7) -4 3,0 3,7 -5 1,9 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 -6 Contract revenues Multi-client revenues Total revenues EBITDA 27
Slide 28: SG&A
SG&A SG&A (USD millions) 1,8 1,7 1,6 1,4 1,4 * 1,2 1,1 * More than 40% 1,0 * reduction from Q1 1,0 0,9 2020 to Q1 2021 0,8 0,6 0,4 0,2 0,0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 *) Expenses are adjusted for expenses related to ther the value of share option program and one-offs 28
Slide 29: Investments
Investments Capital expenditure (USD millions) 2,5 2,3 Remaining outfitting 2,0 of Fulmar Explorer has been postponed and will be subject 1,5 to contract award Outfitting of Fulmar 1,0 Explorer will be covered by USD 16m credit facility 0,5 0,3 0,3 0,2 0,1 0,0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 29
Slide 30: Capital structure
Capital structure Capital Structure 60 50 40 40 38 Equity ratio of 64% USDm 30 Interest-bearing bank debt of USD 20 8.5m 5 10 14 Net interest-bearing 14 debt of USD 5.6m - 4 Assets Equity & liabilities Cash Current liabilities Current assets Non-current liabilities Non-current assets Equity 30
Slide 31: Summary
Summary 31
Slide 32: Summary
Summary Rebranding and reorganizing into Green Energy Group SE Green Minerals listed on Euronext Growth Oslo LOI with OSI for HEDSMS in Norway signed Oil prices and tendering activity turning up Changing focus from restructuring to profitability and growth 32
Slide 33: Why invest in Green Energy Group (SBX Plc)
Why invest in Green Energy Group (SBX Plc) A leading position in marine minerals on the NCS - a new multi-billion dollar industry in the making A company aspiring to help unlock the most serious bottleneck threatening the advancement of the green energy transition The strongest player in the only ni
Slide 34: Q&A
Q&A 34