23 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014 Results
THIRD QUARTER 2014 RESULTS. Oslo, 6 November 2014, CEO Roar Bekker and CFO Svein Knudsen
Slide 2: Disclaimer
Disclaimer This quarterly presenta3on includes and is based, inter alia, on forward-‐looking informa3on and statements that are subject to risks and uncertain3es that could cause actual results to differ. Such forward-‐looking informa3on and statements are based on current expecta3ons, es3mates and
Slide 3: Highlights third quarter 2014
Highlights third quarter 2014 OperaIonal highlights • Contracts with Petrobras, Statoil, OMV (Norge) and Norske Shell • Completed mul3-‐client survey in US GoM and commenced new survey in Canada • Recently announced contract with IOC in Malaysia and LOI from PTTEP in Thailand Financial highlights •
Slide 4: Financial overview
aw emegs Financial overview Spot the difference.
Slide 5: Financial highlights
Financial highlights Revenues and revenues/costs per vessel month (USD Million) Key figures Q3 60.00 7.0 • Revenues of USD 41.7 million 6.0 50.00 • EBITDA of USD 11.0 million 40.00 5.0 4.0 • Net income of USD 7.0 million 30.00 3.0 20.00 2.0 10.00 1.0 MulI-‐client Q3 0.00 0.0 • Sales of USD 11.9 mill
Slide 6: Vessel utilisation
Vessel u3lisa3on 31% 12% 65% 63% BOA Thalassa BOA Galatea 38% 69% Fleet uIlisaIon Contract: 31% MulI-‐client: 38% 91% 55% Steaming: 12% AtlanIc Guardian EM Leader
Slide 7: Capital Structure
Capital Structure Balance sheet as at 30.09.14 (USD million) • Cash at USD 42.5 million, up from USD 40.4 million 250 end of previous quarter • Trade receivables increased by USD 6.7 million 200 USD 57.0 million to USD 41.4 million • Trade payables decreased by USD 6.5 million 150 to USD 14.6 millio
Slide 8: Cost flexibility
Cost flexibility • Charter hire, crew and fuel largest cost component 250 • Immediate cost saving effect of reducing to 3 vessels 200 • Non-‐growth scenario; capex reduced 150 • Clear strategy to keep a flexible cost structure, reflected by the current charter agreements 100 • Ramp-‐up to 5 vessels ma
Slide 9: Operational overview
awemegs Operational overview Spot the difference.
Slide 10: High activity on the Norwegian shelf in 2014
High ac3vity on the Norwegian shelf in 2014 • Most ac3ve year in the Norwegian waters • Several new customers and new projects awarded from exis3ng customers • Experience a «break-‐through» -‐ resul3ng from the unmatched predic3on success in the Barents Sea • Q3 revenues of USD 35 million and YTD
Slide 11: Multi-client project in the US Gulf of Mexico
Mul3-‐client project in the US Gulf of Mexico Daybreak project • Project completed 20 August • EMGS’ first major MC project in the US • Covering approximately 156 blocks and 3,600 km2 -‐ Different survey layout; denser and deeper than Barents -‐ Tailored survey to geology and customer preferences -
Slide 12: East Canada Multi-Client Program
East Canada Mul3-‐Client Program • Acquisi3on commenced on 25 July • Expect to complete mid-‐November (vs late Oct) • Approximately ~2,500 km2 covered (vs 4,000) -‐ Challenging weather condi3ons • Calibrate survey to Flemish Pass Basin Statoil discoveries • First licencing round expected mid-‐20
Slide 13: Vessel schedule
Vessel schedule Expected vessel schedule as of 5 November 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 July Aug Sept Oct Nov Dec Jan Feb March April May June BOA Thalassa Norway Asia Asia BOA Galatea Canada Mexico/ GoM Mexico/ GoM AtlanIc Guardian OMV Norway Statoil/NE Norway Africa Norway EM Leader GoM Pet
Slide 14: Market update
Market update Order book (USD million) Contract opportuniIes 140 • Good start in Asia confirming previous guiding • Expect to keep one vessel in Asia in 2015 120 • Tender for EM campaign in Uruguay 100 • High demand for EM from NOCs • Opening up of Mexican shelf expected to increase ac3vity 80 60 Mul
Slide 15: Summary and outlook
Summary and outlook Summary • Awarded and completed mul3ple new contracts • Investments in mul3-‐client libraries in the US Gulf of Mexico, the Barents Sea and Canada • EM technology predic3on strength demonstrated through drilling results • Solid balance sheet and flexible cost structure Outlook •
Slide 16: Questions?
aw emegs Questions? Spot the difference.
Slide 17: Appendix
SPOT THE DIFFERENCE
Slide 18: Income statement
Income statement USD million Quarter ending Nine months ending 30.09.2014 30.09.2013 30.09.2014 30.09.2013 Contract sales 29.8 21.5 111.7 71.2 Mul3-‐client sales 11.9 2.1 33.8 28.5 Total revenues 41.7 23.6 145.5 99.7 Charter hire, fuel and crew expenses 11.1 8.9 45.5 30.9 Employee expenses 14.6 13.
Slide 19: Financial position
Financial posi3on USD million Period ending ASSETS 30.09.2014 30.09.2013 Goodwill 14.4 14.4 Deferred tax asset 1.9 -‐ Mul3-‐client library 35.9 31.0 Other intangible assets 2.2 3.8 Property, plant and equipment 22.1 25.9 Assets under construc3on 26.0 18.3 Financial assets 7.6 -‐ Total non-‐curre
Slide 20: Cash flow
Cash flow USD million Nine months ending 30.09.2014 30.09.2013 Net cash flow from operaIng acIviIes 23.6 39.1 Net cash flow from invesIng acIviIes (20.0) (43.3) Net cash flow from financial acIviIes (1.3) 10.9 Net increase in cash 2.2 6.6
Slide 21: Largest shareholders (as of 5 November)
Largest shareholders (as of 5 November) Shareholder Shares Holding 1 MORGAN STANLEY & CO S/A MSCO CLIENT EQUI 18 576 200 9.30 % 2 PERESTROIKA AS 17 889 449 8.96 % 3 SKAGEN GLOBAL 9 673 473 4.84 % 4 MOMENTUM INVESTMENTS 9 604 920 4.81 % 5 ODIN OFFSHORE 9 585 051 4.80 % 6 VERDIPAPIRFONDET DNB 8 000 00
Slide 22: Vessel charters and yard stays
Vessel charters and yard stays BOA Thalassa BOA Galatea Atlan3c Guardian EM Leader EM Express Firm Charter December 2015 July 2016 1 March 2016 28 July 2014 Standby in Bergen at no cost to EMGS. Op3ons 1 x 1 year 1 x 1 year 3 x 1 year Op3onal 1-‐, 3-‐, 6-‐ or 12-‐month charters un3l 9 March 2015
Slide 23: Electromagnetics in the E&P workflow
Electromagne3cs in the E&P workflow Gravity/ Magne3cs Detailed 2D seismic 3D seismic Produc3on data Regional 2D seismic Lease Sale Borehole data 4D seismic Basin Fron3er Explora3on Development Produc3on Abandonment Evalua3on Explora3on Develop play concepts Drilling risk reduc3on Near field explora3on