Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q2 2020 Earnings Presentation
13 slides from Electromagnetic Geoservices Asa's earnings presentation, May 23, 2020
Slide 1: Q2 2020 Results
Q2 2020 RESULTS Oslo, 23rd of May 2020 Bjørn Petter Lindhom, CEO Anders Eimstad, 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: Q2 2020 Operational and financial highlights
Q2 2020 Operational highlights • Completed fully prefunded multi-client survey over the Martin Linge area • Completed multi-client survey in the Liatårnet area • Renegotiated the Atlantic Guardian charter party agreement • Redelivered the Petrel Explorer Financial highlights • Revenues of USD 7.5 mi
Slide 4: Operations, Market and Outlook
Operations, Market and Outlook
Slide 5: Transition to low cost setup on schedule
Transition to low cost setup on schedule • Based on constructive discussions with vessel owners we have renegotiated the Atlantic Guardian charter agreement • Substantially lower cold-stack rate for up to 12 months • Lower operational rate • 12 months extension of firm charter period • Petrel Explor
Slide 6: Market outlook and technology update
Market outlook and technology update • CSEM market expected to remain challenging for the remainder of 2020 • EMGS working towards restarting data acquisition in 2021, first on the NCS and thereafter internationally • Lead inventory remains intact, but most projects are being delayed • Expect Norway
Slide 7: Wells drilled this year with CSEM Multi-Client coverage
Wells drilled this year with CSEM Multi-Client coverage • 3 wells are drilled within CSEM MC coverage so far DRY this year • All 3 wells were targeting prospects without any CSEM anomalies, and all came in unsuccessful (dry) • Grind (6507/8-10S) - Dry DRY • Gabriel (35/10-5) - Dry • Sandia 7321/8-2S
Slide 8: Financial review
awemegs Spot the difference.
Slide 9: Second quarter 2020 performance: Development in revenues and EBITDA
Second quarter 2020 performance I Development in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues Revenues 40 37 • USD 7.5 million 30 27 • USD 3.1 million prefunding 20 14 11 10 8 • USD 1.9 million late sales 0 • Vessel utilisation of 23% Q2'19 Q3'19 Q4'19 Q1'
Slide 10: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 20 • Operational costs base in Q2 20 of USD 9.5 million 15 4.8 • USD 2.6 million lower than Q1 20 • Petrel Explorer redelivered end May 10 0.6 0.4 • Atlantic Guardian cold stacked since early April 3.0 5 0.8 • Targ
Slide 11: Decrease in free cash in Q2 2020
Decrease in free cash in Q2 2020 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 6.2 million to USD 16.0 million • Trade receivables decreased by USD 7.7 million to USD 6.5 million • Continued delays in some of the payments under on-going contract for the qu
Slide 12: Summary, Q&A
Summary, Q&A awemegs Spot the difference.
Slide 13: Summary
Summary • Cost reduction program on target and on schedule • EMGS expects a quarterly operational cost base of USD 3 million in 2021 (with vessel in cold-stack) • Challenging short to medium term financial outlook, but with significantly reduced cost base and increased flexibility in the long term
Electromagnetic Geoservices — Q2 2020 Earnings Presentation on 6ix