Thalassa Holdings Ltd · LSE:THAL
Thalassa — Investor Presentation (April 2014)
32 slides from Thalassa's investor presentation, April 2014
Slide 1: Investor Presentation April 2014
INVESTOR PRESENTATION April 2014 Exploration and Beyond… working to increase the value and output of active reservoirs
Slide 2: Disclaimer
Disclaimer • The content of this presenta5on has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on this presenta5on for the purposes of engaging in investment ac5vity may expose an individual to a significant risk of losi
Slide 3: Introduction
Introduc:on Thalassa Holdings Ltd WGP Group GO Science • Thalassa Holdings Ltd (“Thalassa”) is a holding company, registered in the BVI and listed on the London AIM Market, with two opera5ng subsidiaries, WGP Group Ltd and GO Science Group Ltd. • WGP is a marine seismic services company, with par5cu
Slide 4: 2013 WGP Operational Highlights
2013 WGP Opera:onal Highlights • Statoil Contract awarded for the manufacture of a new Dual Portable Modular Source System (“D-‐PMSS™”) for $19.8m and for the provision of long term seismic acquisi5on services for permanent reservoir monitoring of the Snorre and Grane oil fields in the Norwegian sec
Slide 5: 2013 Financial Highlights
2013 Financial Highlights Revenue $m’s $40.0 • Revenue up 119% to $30.6m $30.0 (2012: $14.0m). $20.0 • Opera5ng Profit up 180% to $4.2m $10.0 (2012: $1.5m). $0.0 2010 2011 2012 2013 • Opera5ng Margin up 300 bps to 13.7% (2012: 10.7%). Opera5ng Profit $m’s • Net Profit up 258% to $4.3m (2012: $6.0 $1.2m
Slide 6: 2013 Financial Highlights
2013 Financial Highlights Net Assets $m's • Book value up 397% to $51.2m $60.0 $50.0 (2012: $10.3m). $40.0 $30.0 $20.0 • Debt $nil (2012: $nil). $10.0 $0.0 2010 2011 2012 2013 • Cash up 1,188% to $32.2m (2012 ($2.5m). Net Cash $m's $40.0 $30.0 • Capital Raised £22.5m net ($35.5m) $20.0 through two p
Slide 7: Acquisition of GO Science Business
Acquisition of GO Science Business • Thalassa acquired the intellectual property and other assets of GO Science Limited for considera5on of £1,860,000. • GO Science is developing mobile sensor grid services and products, in the UK and overseas, to mul5-‐na5onal clients in the oil and gas sector. •
Slide 8: GO Science Potential
GO Science Poten:al • Thalassa believes GO Science: – Has a poten5ally significant disrup5ve technology which, having already successfully concluded various tests, will lead to substan5al demand for its products and services. – Is capable of deploying unmanned submersible vessels into deep water or c
Slide 9: 2014 Outlook
2014 Outlook • New contract with SAExplora5on, Inc. to provide shallow water source handling and deployment services for seismic acquisi5on projects in the North Prudhoe Bay, Alaska. • New mul5-‐client contract with TGS-‐NOPEC to collaborate on a project to jointly acquire and own mul5-‐client se
Slide 10: Summary
Summary • Growing market with significant growth drivers • Niche operator providing bespoke solu5ons • Experienced management, opera5ons and R&D teams • P-‐Cable JV extends Group’s technology and target markets • Thalassa has significant compe55ve advantages in its chosen markets • Established custom
Slide 11: Appendices
Appendices • Background • Corporate Structure • Key Management • What WGP does? • What is seismic data acquisi5on? • Portable Modular Seismic Source (PMSS™) • WGP’s Compe55ve Advantages • Seismic Data Acquisi5on Market • Significant Projects • Strategy • Industry Landscape • Key Sta5s5cs • Historical
Slide 12: Background
Background Year Milestone 1994 • WGP business incorporated 2003 • WGP commences development work with BP on LoFS 2007 • Thalassa founded • Thalassa admiTed to AIM (with 5cker symbol THAL.L & THAL:LN) raising gross proceeds of $8.5m 2008 • First PMSS™ equipment acquired and assembled for $5.8m 2010 •
Slide 13: Corporate Structure
Corporate Structure Thalassa Holdings Ltd (Holding Company) 100% 100% WGP Group Ltd GO Science Group Ltd 100% 100% 100% 100% 50% 100% WGP WGP WGP WGP Energy Explora:on Ltd Professional WGP Survey GO Science Technical Services Ltd (Acquired on 16 Nov Services Ltd Ltd 2013 Ltd 2011) Services Ltd • Tha
Slide 14: Key Management
Key Management Duncan Soukup, Chairman: Mr Soukup has over 25 years of investment experience. Having worked in investment banking for 10 years (1984-‐1994), laTerly with Bear Stearns as managing director in charge of the company's non-‐US equity business, Mr Soukup set up his own investment manage
Slide 15: Key Management: Executive & Non-Executive Directors
Key Management: Execu>ve & Non-‐Execu>ve Directors Francis Smulders, Execu:ve Director: Mr Smulders, brings 22 years of experience in a wide range of industries from a strategic consul5ng perspec5ve, including Oil & Gas, FMCG and financial services. He started his career with Allseas, a supplier of
Slide 16: What WGP Does?
What WGP Does? • WGP provides bespoke seismic solu5ons to explore for and enhance hydrocarbon recovery • Areas of specialist ac5vity: • 4D Life of Field Seismic (exis5ng fields) • Marine 2D Towed Streamer & Seabed Seismic (explora5on) • High Resolu5on 3D Towed Streamer (explora5on, shallow target) •
Slide 17: What is Seismic Data Acquisition?
What is Seismic Data Acquisi:on? Towed Streamer 2D/3D Seismic Ocean BoSom 4D Seismic Fibre op5c to Shore • Cable towed behind vessel along with a single source Seabed seismic receivers Cross -‐ reservoir Seismic Data • Used in fron5er explora5on areas • Used for reservoir monitoring • To extend the
Slide 18: Portable Modular Seismic Source (PMSS)
Portable Modular Seismic Source (PMSS™) • Provides the seismic source -‐ the “seismic boom” • Comprises modular units designed: – for temporary use on plaxorm supply vessels – to be transportable for mobilisa5on worldwide • Able to provide bespoke solu5ons, including layout, design, PMSSTM installa
Slide 19: WGP's Competitive Advantages
WGP’s Compe::ve Advantages • Portable modular seismic source system (PMSSTM) • Provides bespoke solu5ons to E&P majors • 10 years experience in LoFS 4D opera5ons • High end precision engineering • Deployment capability and experience in challenging loca5ons 19
Slide 20: Seismic Data Acquisition Market
Seismic Data Acquisi:on Market • Market es5mated to be growing at 10-‐15% per annum • Discovering new fields and enhancing recovery becoming increasingly important • Statoil looking to enhance underwater field recovery to c60% compared to an industry average of 35% • 2D/3D Towed Streamer solu5on enab
Slide 21: Significant Projects - Statoil
Significant Projects -‐ Statoil Contract 1 • To provide seismic acquisi5on services over the Snorre and Grane oil fields in the Norwegian sector of the North Sea. • Ini5al fixed term of 5 years with op5on to extend by 2 further terms of 2 years each. • Total contract value, excluding any extensions, i
Slide 22: Other Significant Projects
Other Significant Projects BP (North Sea) SMG (Arc:c) • Long term WGP • Installa5on of PMSS™ and rela5onship with BP da5ng streamer on board ice back to 2003 breaker vessel to conduct • 3.5 year (7 survey) contract 2D survey in Russian Arc5c commenced 2010 • Most recent contract • Provision & opera5o
Slide 23: Strategy
Strategy • Organic Growth – New marine seismic contracts – Further reduce LoFS and seabed explora5on costs – Focus on poten5al clients with major proven reserves where significant capital and opera5onal expenditure is expected (LoFS) – Retain key staff members and hire new talent – Acquire further ope
Slide 24: Industry Landscape
Industry Landscape Current Poten5al Source: WGP 24
Slide 25: Key Statistics
Key Sta:s:cs • Market AIM • Ticker symbol Reuters: THAL.L Bloomberg: THAL:LN • Number of Shares in issue -‐ Basic 25,057,522 • Number of Shares in issue -‐ Diluted 25,397,522 • Number of Shares held in treasury nil • Share Price – 52 week range £3.20 -‐ £1.20 • Current Share Price £2.86 • Market
Slide 26: Share Price - pence
Share Price -‐ pence THAL share price – 5 year chart 26
Slide 27: Financials - P&L ($m's)
Financials -‐ P&L ($m’s) FY13 FY12 FY11 FY10 Revenue 30.6 14.0 2.4 0.4 Cost of Sales -‐21.3 -‐9.1 -‐ -‐0.1 Gross Profit 9.3 4.9 2.4 0.3 Gross Margin 30.4% 35.3% 100.0% 79.7% Admin Expenses -‐4.4 -‐2.9 -‐1.2 -‐0.5 Deprecia5on / Impairment -‐0.7 -‐0.6 -‐0.9 -‐ Opera:ng Profit/(Loss) 4.2 1.5
Slide 28: Financials - Balance Sheet ($m's)
Financials -‐ Balance Sheet ($m’s) FY13 FY12 FY11 FY10 Goodwill 0.4 0.4 0.4 -‐ Intellectual Property 2.8 -‐ -‐ -‐ Property, plant & equipment 8.2 7.9 7.0 7.7 Total non-‐current assets 11.4 8.3 7.4 7.7 Inventory 0.7 0.1 -‐ -‐ Loans & receivables 1.9 -‐ -‐ 0.0 Receivables 7.1 0.6 0.6 0.1 Cas
Slide 29: Financials - Cash Flow ($m's)
Financials – Cash Flow ($m’s) FY13 FY12 FY11 FY10 Net cash flow from opera:ng ac:vi:es -‐0.9 1.9 0.2 0.5 Cash flow from inves:ng ac:vi:es Acquisi5on of IP -‐2.9 -‐ -‐ -‐ Loans -‐1.9 -‐ -‐ -‐ Purchase of equipment -‐0.9 -‐1.4 -‐ -‐ Net cash flow from inves:ng ac:vi:es -‐5.7 -‐1.4 1.6 -‐
Slide 30: Financial Ratios
Financial Ra:os FY13 FY12 FY11 FY10 No. of shares in issue – basic (m’s) 23.9 11.9 9.7 7.2 No. of shares in issue – diluted (m’s) 24.3 12.1 11.9 9.6 Weighted average no. of shares – basic (m’s) 16.4 9.9 7.5 6.8 EPS – Basic (US$) 0.26 0.12 0.04 0.08 Weighted average no. of shares – diluted (m’s) 16.6
Slide 31: Financial Ratios
Financial Ra:os Investment Valua:on Ra:os FY13 FY12 FY11 FY10 P/Sls 2.6x 2.00x 3.40x 19.42x P/EBITDA 15.8x 13.1x 6.7x n/a P/E 18.2x 48.7x 67.9x n/a P/BV 1.5x 2.7x 0.9x 0.8x EV/BV 1.6x 2.5x 0.7x 1.1x EV/EBITDA 17.9x 57.1x 97.1x n/a Profitability Ra:os ROE 18.4% 11.7% 4.0% 7.3% ROA 18.4% 10.5% 3.6% 6.6
Slide 32: www.thalassaholdingsltd.com www.wgp-group.com
www.thalassaholdingsltd.com www.wgp-‐group.com 32
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