Slide 1: SeaBird Exploration First Quarter Presentation
SeaBird Exploration First Quarter Presentation 6 May 2015 CEO Dag Reynolds CFO Nils Haugestad
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: Highlights
Highlights Financial results • Revenues of $24.2 million ($28.1 million Q4 2014) • Adjusted EBITDA of $3.5 million (negative $7.7 million Q4 2014) • Non-recurring restructuring gain net of advisory fees of $66.0 million Quarterly observations • Financial restructuring completed during the quarter •
Slide 4: Financial summary
Financial summary
Slide 5: Historical operating comparison
Historical operating comparison Revenues EBITDA (USD millions) (USD millions) 50 20 44.7 12.6 10.2 8.2 40 10 33.7 3.5 0 30 28.1 24.2 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 22.7 -10 (2.1) (7.7) 20 41.0 30.5 -20 23.5 23.0 10 16.4 -30 (28.5) 0 -40 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 EBITDA EBITDA adjusted for nonrecu
Slide 6: Vessel utilization
Vessel utilization Vessel utilization • Q1 contract utilization of 58%, up 1% from 52% in Q4 2014 100% 0% 2% 2% 8% 90% • No multi-client projects during the 24% 7% quarter 80% 33% 13% 43% 40% • Transit time 40% of fleet capacity 70% 12% 60% • Yard stays account for 2% of during 0% 5% the quarter 50%
Slide 7: Income statement
Income statement CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended 31 March All figures in USD millions (except for EPS) Adjusted Non-recurring Reported 2015 items 2015 2015 2014 Contract 23.0 - 23.0 30.5 Multi-client 1.2 - 1.2 3.2 Total revenues 24.2 - 24.2 33.7 Cost of sales (17.0) - (17.0) (
Slide 8: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended 31 March All figures in USD millions 2015 2014 Profit/(loss) before income tax 63.8 (0.4) Restructuring gain (66.0) - Other non-cash items 7.1 10.5 Paid income tax (1.1) (0.4) Working capital changes (10.0) 5.2 Net cash fr
Slide 9: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 31 March All figures in USD millions (except for equity ratio) 2015 2014 Property, plant and equipment 75.3 119.6 Multi-client library 14.0 12.3 Other non-current assets 0.1 1.3 Inventories 2.6 4.6 Trade receivables 16.5 27.6 O
Slide 10: Restructuring update
Restructuring update • Reduced debt and extended maturities – Total nominal debt reduced from $96.8 million to $40.0 million – Approximately $17 million in vendor obligations converted into equity, debt or written down – No significant debt amortization until Q2 2017 • Gross additional funds of $16.
Slide 11: Debt profile
Debt profile Funded debt profile (USD millions) 45 40.0 40 6.2 33.7 35 2.1 2.4 4.7 30 1.9 1.9 25 20 15 29.3 25.2 10 5 0 Face value Book value Bond loan - SBX 04 Secured credit facility Unsecured note Hawk Explorer finance lease 11
Slide 12: Funded debt review
Funded debt review Debt instruments SBX04 Main terms Tranche A Tranche B Credit facility Unsecured note Amount in millions 5.0 24.3 2.4 2.1 Maturity Mar-18 Mar-18 Mar-18 Dec-17 Coupon 12.00% 6.00% 6.00% 6.00% Amortization Two years holiday period; Two years holiday period; Nine equal quarterly there
Slide 13: Business review and outlook
Business review and outlook
Slide 14: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region (USD millions) 45 (USD millions) 45 40 40 9.3 35 13.4 35 30 30 10.1 25 10.0 6.8 25 4.6 20 4.4 20 5.7 10.3 6.2 5.0 15 31.7 15 5.8 12.1 6.8 10 20.4 15.0 10 20.8 14.3 2.3 14.1 9.0 5 10.2 5 6.8 7.3 2.3 3.7 0 - - 0.4 0
Slide 15: Update on Mexico
Update on Mexico • Mexico approval process progressing, but still awaiting select permits – CNH permit received • Expected start-up in 1H 2015 – Further delay represents meaningful risk • Up to four vessels active for a period of up to three years 15
Slide 16: Fleet update
Fleet update Northern Osprey Explorer Explorer Hawk Explorer Harrier Explorer Aquila Explorer Munin Explorer Cold stacked: – Voyager Explorer – Geo Pacific 16
Slide 17: Multi-client update
Multi-client update Multi-client revenues by quarter (USD millions) • Multi-client revenues in Q1 of $1.2 million 7 6.3 6 – Revenues predominantly relate to sales of 5 4.6 2014 surveys 4 3.2 3.7 – Late sales negatively impacted by reduced 3 oil company spending 2 1.2 1 0 Q1 2014 Q2 2014 Q3 2014 Q4 2
Slide 18: Cost reduction measures
Cost reduction measures SG&A (USD millions) 18 15.6 • SG&A 16 14 12 – Decrease of approximately $1 million 10 10.9 8 – Number of onshore staff reduced 6 4.9 5.1 5.1 3.8 0.2 0.2 4 – Closing of Dubai office 2 4.8 5.1 4.8 4.7 3.8 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Recurring Non-recurring • Cost
Slide 19: Market outlook
Market outlook • Market uncertainty is continuing to impact spending by oil companies – Reduced tender activity – Increased risk of start-up delays or project cancellations • Significant activity in 2D and source vessel markets. However, still spill over from 3D vessels despite the large number of v