Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2020 Earnings Presentation
13 slides from Electromagnetic Geoservices Asa's earnings presentation, May 7, 2020
Slide 1: Q1 2020 Results
Q1 2020 RESULTS Oslo, 7th 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: Q1 2020 Operational and Financial highlights
Q1 2020 Operational highlights • Completion of acquisition work for Pemex • Commencement of fully prefunded Martin Linge multi-client survey in Norway • Start transit towards Norway in preparation of cold stacking the Atlantic Guardian Financial highlights • Revenues of USD 11.3 million • EBITDA of
Slide 4: Operations, Market and Outlook
Operations, Market and Outlook
Slide 5: Contract cancellations and delays
Contract cancellations and delays • Received notification from Pemex that no additional acquisition work would be forthcoming in the short to medium term • BP cancelled the Mauritania and Senegal contract (approx. USD 2 million cancellation fee) • Received notification from BP of cancellation of 202
Slide 6: Restructuring and transition to a low-cost setup
Restructuring and transition to a low-cost setup • Cold stacking of the Atlantic Guardian • Return of the Petrel Explorer at end of firm charter period (end May) • Permanent personnel reductions of approximately 90% (including employees, contractors and consultants) • Closing offices outside of Norw
Slide 7: Challenging financial outlook
Challenging financial outlook • Preservation of liquidity key • Initiated cost reduction process aiming at reducing quarterly cash cost to approximately USD 4 million by end 2020 • Pemex payment delays continues • Future revenue • Working to build 2021 NCS summer campaign • Late sales from existing
Slide 8: Financial review
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Slide 9: First quarter 2020 performance I Development in revenues and EBITDA
First quarter 2020 performance I Development in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues Revenues 40 37 • USD 11.3 million 30 27 • Proprietary work in Mexico 20 14 11 11 10 • Contract termination fee of approx. USD 2 million 0 Q1'19 Q2'19 Q3'19 Q4'19 Q
Slide 10: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 20 • Operational costs base in Q1 20 of USD 12.1 million 15 • USD 4.2 million lower than Q4 2019 4.8 • Reverse bonus accrual (USD -1.6 million) as a result of 10 3,9 cancellation of 2019 bonus • Lower cost associat
Slide 11: Decrease in free cash in Q1 2020
Decrease in free cash in Q1 2020 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 3.7 million to USD 16.0 million • Trade receivables decreased by USD 9.3 million to USD 14.2 million • Continued delays in some of the payments under on-going contract for the q
Slide 12: Summary, Q&A
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Slide 13: Summary
Summary • Initiated cost reduction program and transition to low-cost setup • Building acquisition campaign for 2021 • Challenging short to medium term financial outlook, but with significantly reduced cost base and increased flexibility in the long term
Electromagnetic Geoservices — Q1 2020 Earnings Presentation on 6ix