Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q2 2010 Earnings Presentation
22 slides from Electromagnetic Geoservices Asa's earnings presentation, Aug 26, 2010
Slide 1: EMGS ASA – Second Quarter Presentation 2010
EMGS ASA – SECOND QUARTER PRESENTATION 2010 CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 26 August 2010
Slide 2: Highlights
HIGHLIGHTS This eventful quarter represents a turning point for EMGS USD 150 million contract with PEMEX Delivering on our long-term strategy of targeting NOCs and major oil companies Strengthened financial position Favourable court ruling in patent dispute launched by Schlumberger INTEGRATED EM SYS
Slide 3: Financials
FINANCIALS 6} Clearplay memes
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS USD million Q2 2010 financial results • Revenues: USD 14.7 million 40 • EBITDA: USD 1.2 million 30 Vessel utilisation at 66% in Q2 20 PEMEX contract triggered increased working capital needs 10 Completed USD 30 million private 0 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 placemen
Slide 5: Capital Structure
CAPITAL STRUCTURE Assets as of 30.06. Equity and liabilites as of 30.06. (in USD million) (in USD million) 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 2010 2009 2010 2009 Non-current assets Shareholders equity Cash Liabilities Current assets other than cash Convertible loans
Slide 6: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Q2 2010 Q2 2009 Unaudited Unaudited USD million Revenues 14.7 30.8 Charter hire, fuel and crew expenses 5.0 12.0 Employee expenses 5.9 7.6 Other operating expenses 2.7 3.2 EBITDA *) 1.2 8.1 Depreciation and ordinary amortisation 4.9 5.9 Multi-client amortisation 2.1 - E
Slide 7: Operational Costs
OPERATIONAL COSTS USD million Vessel status 30 Charter Vessel Status Q2 expiration 25 BOA Thalassa In operation Dec. 2013 BOA Galatea In operation July 2014 20 Siem Mollie - Cold stacked in Sept. 2010 April 15 - Subleased 2 first weeks of May 10 - Rigged and in operation for the remainder of Q2 5 At
Slide 8: Operations & Market Update
OPERATIONS & MARKET UPDATE 6} Clearplay memes
Slide 9: Large Scale Commercial Adoption of 3D EM
LARGE SCALE COMMERCIAL ADOPTION OF 3D EM The PEMEX contract win is a result of a focused marketing strategy • Targeting national and major oil companies • Extensive customer training and sales effort • Competent local partner • Strong patent position 3D EM as an integrated part of PEMEX’s exploratio
Slide 10: PEMEX Contract Worth Minimum USD 150 Million
PEMEX CONTRACT WORTH MINIMUM USD 150 MILLION Multi-year contract lasting through 2012 Will generate 2010 revenues in the range of USD 20 – 25 million Remaining contract value recognized in 2011 and 2012 3D EM vessel BOA Thalassa will operate continuously throughout the contract period Purpose-built
Slide 11: Sales and Marketing Focus
SALES AND MARKETING FOCUS Barents Sea 2010 multi-client campaign • Pre-funding and sales year to date: USD 5.9 milllion • Significant late-sales potential Building backlog for BOA Galatea in Asia • Extensive sales and marketing activity • Fugro/EMGS delivered first joint tender and pursuing multi-cl
Slide 12: Vessel Activity & Backlog
VESSEL ACTIVITY & BACKLOG Q2 Q3 Q4 Q1 2010 April May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar BOA Thalassa • Norway, Rocksource • Barents Sea MC • In transit • PEMEX BOA Galatea • West Africa • In transit • Asia • Off-hire/maintenance • Contract negotiations Mobile Acquisition Set • Barents Sea MC •
Slide 13: Summary & Outlook
SUMMARY & OUTLOOK 6} Clearplay memes
Slide 14: Summary and Outlook
SUMMARY AND OUTLOOK Financial results showing gradual quarter- by-quarter improvements Award of PEMEX contract provides backlog for one vessel through 2012 BOA Galatea positioned for major campaign in Asia Investments in 3D EM data library with significant late sales potential Strengthened balance s
Slide 15: Q&A
O&A 6} Clearplay memes
Slide 16: Appendix
APPENDIX 6} Clearplay memes
Slide 17: Condensed Balance Sheet
CONDENSED BALANCE SHEET Half year ended Year ended USD million 30 June 2010 31 December 2009 ASSETS Intangible assets 6.1 2.9 Property, plant and equipment 28.9 32.1 Assets under construction 8.7 10.5 Investment in joint venture 3.0 3.0 Total non-current assets 46.8 48.5 Trade receivables 6.6 9.9 Ot
Slide 18: Condensed Statement of Cash Flow
CONDENSED STATEMENT OF CASH FLOW Half year ended Year ended USD million 30 June 2010 31 December 2009 Net cash flow from operating activities (15.0) (35.4) Net cash flow from investing activities (8.1) (7.3) Net cash flow from financial activities 27.9 44.2 Net profit (loss) before income taxes (18.
Slide 19: Ownership (as of 24 August 2010)
OWNERSHIP (AS OF 24 AUGUST 2010) Shareholder Shares Holding 1 WARBURG PINCUS 61 873 434 40.29 % 2 ODIN NORGE 9 186 914 5.98 % 3 DNB NOR SMB, VPF 4 500 000 2.93 % 4 SISSENER SIRIUS ASA 4 441 355 2.89 % 5 ODIN OFFSHORE 3 860 000 2.51 % 6 SUNDT AS 3 175 000 2.07 % 7 BRUHEIM, BJARTE HENRY 3 000 088 1.95
Slide 20: EMGS Experience & Presence
EMGS EXPERIENCE & PRESENCE INTEGRATED EM SYSTEM
Slide 21: The Value of EM
THE VALUE OF EM A clearer, more complete understanding of the subsurface Reduces risk and finding costs per barrel Represents an additional measurement to the existing portfolio of sub-surface measurements INTEGRATED EM SYSTEM
Slide 22: EMGS's Services
EMGS’S SERVICES Three Clearplay service offerings have been designed to support operators during the exploration phase INTEGRATED EM SYSTEM
Electromagnetic Geoservices ASA (EMGS) — Q2 2010 Earnings Presentation on 6ix