Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2019 Earnings Presentation
15 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 7, 2019
Slide 1: Company Update and Q3 2019 Results
COMPANY UPDATE AND Q3 2019 RESULTS Oslo, 7 November 2019 Bjørn Petter Lindhom, CEO Hege Veiseth, 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: Operations, Market and Outlook
Operations, Market and Outlook
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights Operational highlights • Ongoing USD 24 million proprietary survey offshore Borneo for Petronas • Commencement of the Pemex contract in Mexico • Backlog end Q3 of USD 78 million, whereof USD 37 million is firm Financial highlights • Revenues of USD 26.9 million • EBITDA of USD 15.
Slide 5: Vessel Update and Backlog
Vessel Update and Backlog Comments Order backlog (USD million) • Order backlog at USD 78 million at end of Q3 2019, 100 whereof USD 37 million is firm 90 • Atlantic Guardian will acquire data in Mexico for the 80 remainder of the year 70 • Thalassa is currently acquiring data for Petronas 60 41 offs
Slide 6: Strong operational performance for both vessels
Strong operational performance for both vessels • Despite both vessels operating under challenging conditions, both are delivering outstanding operational performance • The Atlantic Guardian has been operating in ultra shallow waters, with towing as shallow as 11 meters and Rx deployment as shallow
Slide 7: Global exploration success is low
Global exploration success is low Only 8% of 110 frontier wells in the Atlantic Margin were considered commerical (from 2007-2015) 92% were non-commercial or dry Atlantic margin Source: Richmond Energy Partners / Westwood Group
Slide 8: Value of CSEM in exploration
Value of CSEM in exploration • EMGS internal, and previously published external, 100% calibration studies estimate CSEM to be able to correctly Probability of at least one commercial discovery 90% predict large discoveries 8 out of 10 times, i.e. a prediction strength of around 80% 80% 70% • Assumin
Slide 9: Well calibration studies
Well calibration studies “Qualitative correlation with the well results approximately support the 80% published success rates.” “These results can clearly modify the probability of success in an exploration context” Seismic data courtesy of Building Confidence in CSEM for Exploration – Benchmarking
Slide 10: Financial review
awemegs Spot the difference.
Slide 11: Third quarter 2019 performance: Increase in revenues and EBITDA
Third quarter 2019 performance I Increase in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues Revenues 30 27 • USD 26.9 million 25 20 14 14 • Proprietary work in South East Asia and Mexico 15 11 10 6 5 0 • Vessel utilisation of 73% Q3'18 Q4'18 Q1'19 Q2'19 Q3'1
Slide 12: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 20 • Operational costs base in Q3 19 of USD 15.3 million 15 • Higher than Q3 2018 and Q2 2019 as a result of 5.0 higher activity level 10 • Supply vessels in Mexico and Malaysia (USD 0.7 million) 4.1 1.1 • Withhold
Slide 13: Decrease in free cash in Q3 2019
Decrease in free cash in Q3 2019 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 2.0 million to USD 3.8 million • EBITDA of USD 15.7 million, with an adjusted EBITDA of USD 11.6 million • Trade receivables increased by USD 12.1 million to USD 20.0 million •
Slide 14: Summary, Q&A
Summary, Q&A awemegs Spot the difference.
Slide 15: Summary
Summary • Strong quarter with revenues of USD 26.9 million and adjusted EBITDA of USD 11.6 million • Cash position adversely affected by delayed payments • Order backlog at end of Q3 of USD 78 million, of which USD 37 million is firm
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