28 slides from Electromagnetic Geoservices Asa's earnings presentation, Aug 22, 2007
Slide 1: emgs quarterly presentation Second quarter 2007
emgs quarterly presentation Second quarter 2007 CEO Terje Eidesmo CFO Svein Knudsen Hotel Continental August 22, 2007
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: Group highlights
Group highlights Q2 revenues in line with forecast Successful scanning product launch Major contract in India R&D agreement with Statoil Even stronger market outlook Maintains top line outlook for 2007
Slide 4: Financials
Financials
Slide 5: Financial highlights
Financial highlights USD million M/V Sasha in full production Revenues increased by 46.1 per cent from Q1 and by 26.2 per cent from Q2 2006 Deferred revenues of USD 4.5 million Positive EBITDA
Slide 6: Consolidated income statement
Consolidated income statement USD million Quarterly Year to date Full year Q2 2007 Q2 2006 2007 2006 2006 Revenues 37.8 30.0 63.7 55.6 117.7 Charter hire, fuel and crew expenses 24.7 14.4 43.6 27.8 62.7 Employee expenses 6.7 2.9 17.9 5.5 18.2 Other operating expenses 5.8 2.6 9.7 4.9 16.2 EBITDA 0.5
Slide 7: Condensed balance sheet
Condensed balance sheet USD million Half year ended Half year ended Year ended 30 June 2007 30 June 2006 31 December 2006 ASSETS Cash and cash equivalents 89.5 7.3 20.5 Trade receivables 41.8 20.2 31.9 Other current assets 13.5 8.0 8.8 Total current assets 144.9 35.5 61.2 Intangible assets 2.2 1.2 2
Slide 8: Operations
Operations
Slide 9: Operational development
Operational development Recently announced major contracts (larger than USD 10 million contracts) USD 74 million Not announced smaller contracts (smaller than USD 10 million contracts): USD 20 million Fifth vessel in operations from August Improved utilization in Q2 and further improvement expected
Slide 10: Current fleet
Current fleet Date of refurbishment Charter expiration Operational review Operational in August and commence operations in Siem Mollie August 2007 August 2010 North Sea Steaming from Africa to Relume August 2006 August 2008 Norway in first part of quarter. Operations in North Sea Operations in Asia
Slide 11: Fleet expansion program
Fleet expansion program EMGS will take delivery of two purpose-built vessels in 2008 Long term charter contracts set to expire in 2013 Option for three additional one- years periods Current growth plan secured through 2008
Slide 12: Markets
Maret Markets
Slide 13: Strong market fundamentals
Strong market fundamentals Hunger for energy, high oil prices Cost of dry wells tripled over the last few years Need for smarter exploration Exploration without drilling Perfect positioning in market environment in the foreseeable future
Slide 14: Market development
Market development Seabed logging penetration across the industry Oil majors National oil companies Independant oil companies Governmental Wide geographic reach Present in all major oil regions Discussions on many new frontier areas EMGS possesses information of strategic importance
Slide 15: The India contract
The India contract A large seabed logging project offshore India Repeat business for an independent oil company Value of no less than USD 13.9 million A large scanning component EMGS has s strong position in one of the world’s fastest growing economies
Slide 16: Technology
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Slide 17: Scanning – The future of exploration
Scanning – The future of exploration Scanning is performed in a early phase to generate leads rapidly, and Target further exploration activity in the most prospective areas More prospects, fewer dry wells and reduced finding costs Scanning Additional acquisition
Slide 18: A compelling case
A compelling case 2D seismic Leads Seabed logging scan New Abandoned
Slide 19: Operational experience and a fully integrated offering
Operational experience and a fully integrated offering Data processing Output and Contracting Surveying Pre-survey interpretation advice modeling
Slide 20: Conclusion
CONCLUSION
Slide 21: EMGS' competitive advantage
EMGS’ competitive advantage Strong balance sheet for further growth Seven vessels with equipment on schedule Employed and educated 250 specialists Heavy R&D investments in game changing technology Strong product pipeline Proven track record with oil companies worldwide EMGS is acknowledged as the #
Slide 22: Outlook
Outlook Strongly improved EBITDA from Q1 and further improvement expected in Q3 New products, and improved market in Q2 Further improvement in operational and financial performance in second half Maintains revenue expectation of USD 160- 170 million in 2007
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Condensed statement of cash flow
Condensed statement of cash flow USD million Year to date Full year 2007 2006 2006 Net cash flow from operating activities (15.4) (4.3) (4.0) Net cash flow from investing activities (14.6) (4.6) (14.4) Net cash flow from financial activities 99.0 13.6 36.3 Net profit (loss) 69.1 4.7 17.9
Slide 26: A global platform
A global platform Trondheim Stavanger Oslo London Paris Houston Rio Kuala Lumpur
Slide 27: Management team
Management team Terje Eidesmo President and CEO CFO QHSE Svein Knudsen Jørn Hausmann Global Sales Global Marketing Odd Tjelta Ken Feather Administration R&D Jo Temre Svein Ellingsrud Geology & Asia Pacific Operations North Business Unit South Business Unit Geophysics Business Unit Erik Skogen Odd Tj
Slide 28: Ownership (as of August 15)
Ownership (as of August 15) Shareholder Shares Holding Warburg Pincus 46,307,312 62.85% State Street Bank & Trust 3,751,323 5.09% UBS AG, London branch 2,258,228 3.06% JP Morgan Chase Bank 1,978,800 2.69% Investors Bank and Trust Company 1,506,500 2.04% Bjarte Bruheim 1,460,302 1.98% Fortis Bank Lux