Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2017 Earnings Presentation
20 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 2, 2017
Slide 1: Third Quarter 2017 Results
THIRD QUARTER 2017 RESULTS. Oslo, 2 November 2017 CEO Christiaan Vermeijden, CFO Hege A. Veiseth
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: Revenues of USD 10 m and EBITDA of USD 3 m
Revenues of USD 10 m and EBITDA of USD 3 m Operations • Continued with multi-client investments in Norway • First commercial survey for the Deep Blue (JIP) source completed Financials • Revenues of USD 10.0 million (USD 10.6 million in Q2) • EBITDA of USD 2.9 million (USD 4.5 million in Q2) • Rights
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Third quarter performance
Third quarter performance Key financial metrics Quarterly development (USD million) • Revenues 15 Revenues • USD 10.0 million 10 12 • Mainly multi-client revenues in Norway 5 11 10 • EBITDA 0 4 4 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 • USD 2.9 million Contact sales Multi-client revenues • Vessel utilisation
Slide 6: Reduced operational costs
Reduced operational costs Quarterly operational cost base development* (USD million) Comments 30 • Operational costs base in Q3 of USD 9.2 million 25 - Capitalised multi-client and JIP test expenses of USD 2.2 million 20 - Vessel lease expenses for one vessel (Atlantic 15 Guardian) 10 • Cost control
Slide 7: Increase in free cash in Q3
Increase in free cash in Q3 Quarterly free cash development (USD million) Comments • Net increase in free cash of USD 10.9 million to USD 23.0 million • Financing activities • Rights issue of USD 17.4 million • Repaid credit facility of USD 8.5 million Cash covenant of bond loan 7
Slide 8: Multi-client book value of USD 18.2 million
Multi-client book value of USD 18.2 million Overview of book value of multi-client library (USD million) Comments 18 • Reduction of book value from USD 18.9 million 16 previous quarter to USD 18.2 million 14 15.4 12 • Investments of USD 1.5 million 10 - Norwegian Sea and Barents Sea 8 6 • Amortisati
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Putting CSEM to use
Putting CSEM to use “Providing an example of an integrated solution for improved performance on prospect evaluation” Prospect evaluation for Barents Sea wells posted on LinkedIn pre-well 10
Slide 11: Korpfjell: Well prediction of shallow section by EMGS
Korpfjell: Well prediction of shallow section by EMGS • Seismic suggests the presence of a large volume of hydrocarbons • Large volumes in shallow section not supported by CSEM • CSEM data could be explained by small oil or gas accumulations Prediction by EMGS: Presence of hydrocarbons Low volumes P
Slide 12: Korpfjell: Well result (1st well / shallow well)
Korpfjell: Well result (1st well / shallow well) As reported: • Gas discovery • Much smaller volumes reported than anticipated by seismic Prediction lookback: Presence of hydrocarbons Low volumes Possible pitfalls: Resolved 12
Slide 13: Consistent use of CSEM on a prospect portfolio
Consistent use of CSEM on a prospect portfolio Polarising an oil company’s prospect portfolio provides for: Gemini N • improved decision making and • the potential to increase the return on TBD investment Kayak KORPFJELL for illustrative purpose only 13
Slide 14: Operations and selection of current opportunities
Operations and selection of current opportunities Norway: • Coverage in the Barents Sea expanded in Q3 2017 in Canada: anticipation of the 24th licensing round. Library also • MC data covering Flemish Pass basin available for sale expanded with coverage in the Norwegian Sea • Atlantic Guardian en ro
Slide 15: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Work awarded in Q3 2017 will keep the Guardian 25 busy through the middle of Q4 2017 • Prospects being developed to put Thalassa back at 20 work during Q4 2017 • Pricing requests received in anticipat
Slide 16: Revenues of USD 10 m and EBITDA of USD 3 m
Revenues of USD 10 m and EBITDA of USD 3 m Operations • Continued with multi-client investments in Norway • First commercial survey for the Deep Blue (JIP) source completed Financials • Revenues of USD 10.0 million (USD 10.6 million in Q2) • EBITDA of USD 2.9 million (USD 4.5 million in Q2) • Rights
Slide 17: Questions?
aw emegs Questions? Spot the difference.
Slide 18: Consolidated Income Statement
Consolidated Income Statement Year to date Year to date Q3 2017 Q3 2016 2017 2016 2016 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 443 393 1,619 13,818 21,797 Multi-client pre-funding 5,270 0 10,469 0 579 Multi-client late sales 4,078 4,061
Slide 19: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 30 September 2017 30 September 2016 31 December 2016 30 September 2017 30 September 2016 31 December 2016 Amounts i n USD 1 000 Unaudited Unaudited Audited Amounts i n USD 1 000 Unaudited Unaudited Audited EQUITY ASSETS Capital and reserves attributable t
Slide 20: Largest shareholders as of 1 November
Largest shareholders as of 1 November # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 21,869,450 23.92 2 PERESTROIKA AS 20,560,847 22.49 3 MORGAN STANLEY & CO. LLC 18,074,938 19.77 4 BÆKKELAGET HOLDING AS 3,010,00 3.29 5 SPORTSMAGASINET AS 2,575,001 2.82 6 NHO - P665AK 1,127,686 1.23 7 KRISTIAN
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