Fjord Defence Group Asa · OSL:DFENS
Fjord Defence Group Asa — Axxis Geo Solutions — Q3 2019 Earnings Presentation
21 slides from Fjord Defence Group Asa's earnings presentation, Nov 13, 2019
Slide 1: Third quarter 2019
Third quarter 2019 Axxis Geo Solutions Lee Parker, CEO and Svein Knudsen, CFO 13 November 2019
Slide 2: Disclaimer
Disclaimer • The information in this presentation has been prepared by Axxis Geo Solutions ASA (“AGS” or the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presenta
Slide 3: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 3
Slide 4: Axxis Geo Solutions in brief
Axxis Geo Solutions in brief Axxis Geo Solutions’ competitive edge in the OBS market • An ocean bottom node (OBN) seismic service company • Multi-client and contract seismic • Experienced management and organizational core • Headquarter at Lysaker, Norway • Listed on Oslo Axess (ticker AGS) Asset li
Slide 5: Flexible and cost efficient asset light leasing model
Flexible and cost efficient asset light leasing model Vessels Nodes Crews ▪ Flexibility on vessel type and ▪ Lease nodes based upon demand ▪ Possible to adjust number of crews capacity ▪ Multiple node suppliers can be used ▪ Flexibility proven in the North Sea ▪ Adjust fleet capacity to survey backl
Slide 6: Strong market forces driving OBS market growth
Strong market forces driving OBS market growth USDm • Rapidly growing USD >1 billion OBS 2 500 market 2 000 • Shallow and midwater – 60-70% of the OBS market O&G companies demands 1 500 high resolution data • Demand for high resolution data 1 000 • OBS cost coming down driving demand increase 500 •
Slide 7: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 7
Slide 8: Q3 Highlights
Q3 Highlights Strong operational progress • Completion of merger with Songa Bulk ASA, listing of Axxis Geo Solutions ASA on Oslo Axess • Safe operations with record acquisition efficiency on Utsira multi-client 3D seismic • Awarded first contract in the growing Brazilian OBN market • Letter of inten
Slide 9: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 9
Slide 10: AGS reporting going forward
AGS reporting going forward Segment reporting (internal reporting) IFRS reporting • Gives a conventional representation of underlying • Due to IFRS15 revenue recognition, revenues operational performance and value creation related to multi-client projects are postponed until projects are ready to be
Slide 11: Third quarter segment financial review
Third quarter segment financial review • Revenues mainly driven by pre-funding from multi- Third quarter Segment P&L client programme at Utsira of NOK 91 million and In NOK million the Brazilian contract of NOK 9 million • Cost of sales related to India and Brazil contract work • Other OPEX inflated
Slide 12: Financials segment overview
Financials segment overview In NOK million Revenue EBITDA and EBIT YTD Q3 highlights 350 327 160 144 • Segment revenue derives from 300 140 134 both contact and multi-client 251 120 activity 250 100 • 30% EBITDA margin 200 80 69 60 • 16% EBIT margin 150 40 100 100 20 0 50 -1 -20 -9 0 -40 -25 Q1 19 Q
Slide 13: Financing and segment financial position
Financing and segment financial position • Significant investments in multi-client library YTD In NOK million with prospects for late sales Assets position - Segment reporting 800 749 765 • Total liabilities of NOK 527 million: 700 124 • Account payable NOK 299.1 million 26 600 571 342 • Interest be
Slide 14: Investor communication
Investor communication • AGS will present interim results on a quarterly basis going forward • External presentations related to the interim result will focus on the Segment reporting • AGS intend to provide relevant, accurate, timely and equal information to investors and stakeholders • Main channe
Slide 15: Agenda
Agenda 1. About AGS 2. Highlights 3. Financials 4. Operations and outlook 15
Slide 16: Mobilizing to Middle East Q4-Q1 project
Mobilizing to Middle East Q4-Q1 project • Contract about to be signed • The initial phase has a scope of 18 vessels months, out of total of 28 vessel months (as per the LOI) • The survey is due to commence late November or early December • Requires modern OBN imaging and processing techniques • The
Slide 17: Utsira multi-client survey
Utsira multi-client survey • Successfully completed the North Sea’s largest OBN multi-client survey in October • Prospects for late sales in Q4 2019 ~1,600 km2 • Processing completion in Q1 2020 • Well positioned for future opportunities on NCS • Interest for additional surveys in 2020-2022 • Potent
Slide 18: Step-change in productivity
Step-change in productivity Km2 of acquired data per day Utsira 3D OBN productivity • Record productivity in source and receiver operations 14-20km2 • Safe operations with technical down time on nodal operations of only 1.2% • Possible to move Supporting customers as a one-stop-shop 2 up to 24km of
Slide 19: Backlog and outlook
Backlog and outlook 2019 2020 2021 Q3 Q4 Q1 Q2 Q3 Q4 North Committed Utsira Brazil Sea LOI Middle East Middle East Tenders North Sea North Sea West Africa North Sea India Pipeline GOM West Africa ~ USD 70 million backlog1 as of Q4 and ~USD 900 million tenders / pipeline 2019 / 2020 19 1) Backlog inc
Slide 20: Q&A
Q&A Lee Parker, CEO and Svein Knudsen, CFO 20
Slide 21: Office locations
US Office Norway Office Indonesia Office 14511 Old Katy Road Strandveien 50 Beltway Office Park Tower B, Suite 150 1366 Lysaker Floor 5 Suite 562, Houston, TX 77079 Norway Jl TB Simatupang No 41, United States Kel Pasar Minggu, +47 480 95 555 Kec. Ragunan +1 281 810 2550 South Jakarta +62 21 2985 74