Slide 1: SeaBird Exploration Second Quarter Presentation
SeaBird Exploration Second Quarter Presentation 18 August 2017 CEO Christophe Debouvry CFO Nils Haugestad
Slide 2: Forward-looking statements
Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an
Slide 3: Agenda
Agenda • Q2 highlights • Restructuring and cost reduction • Q2 operational review • Q2 financial review • Summary and outlook • Q&A 3
Slide 4: Q2 highlights
Q2 highlights
Slide 5: Highlights
Highlights Financial results • Revenues of $2.6 million ($8.4 million Q1 2017) • Adjusted EBITDA of negative $6.1 million (negative $0.1 million Q1 2017) • Adjusted EBIT of negative $9.5 million (negative $3.6 million Q1 2017) • Cash and cash equivalents of $3.3 million ($8.8 million in Q1 2017) • N
Slide 6: Restructuring and cost reduction
Restructuring and cost reduction
Slide 7: SeaBird restructuring approved
SeaBird restructuring approved • Restructuring proposal approved by bondholders on 6 June and by shareholders on 13 June; all remaining consents received on 1 August • Agreement with SBX04 tranche B bondholders and Glander to convert ~81.5% of outstanding claim to equity, extend maturity date for re
Slide 8: Restructuring summary
Restructuring summary • Reduced debt and extended maturities – Total nominal debt and charter hire obligations reduced by $37.5 million – Remaining financial debt of $5.7 million – No significant debt maturities until 30 June 2020 – Interest payment in kind – Option to postpone payment of remaining
Slide 9: Reduced commitments
Reduced commitments Pre restructuring Post restructuring 25.9 Restructured debt obligations 6.01) 3.0 2.9 2.9 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2017 Q3 2017 ... Q2 2020 Interest Principal 4.8 3.9 4.0 Charter hire 2.4 obligations May-Dec 2018 2019 2020 May-Dec 2018 2019 2020 2017 2017 Note: 1) Inclu
Slide 10: Significant cost reductions fully implemented by end of 2016
Significant cost reductions fully implemented by end of 2016 Continuous cost focus… …leads to margin improvement SG&A 50% 2014 SG&A expenses (USDm) Onshore headcount (#) 2016 43.3% 19.4 78 -31% -24% Target 13.3 59 40% 30% 2014 2016 2014 2016 25.0% 23.4% Operating expenses 20% Daily opex/vessel (inde
Slide 11: Highly flexible cost structure in place by end of 2016
Highly flexible cost structure in place by end of 2016 Cost flexibility 100% Improved cost elasticity; ~100% ~100% warm-stacking instruction Standard flexible employment contract costs contract costs 0% Previous model Current model Targeting 100% of crew cost on flexible contracts 100% -71.0% Abilit
Slide 12: Further cost reductions implemented in 2017
Further cost reductions implemented in 2017 SG&A costs (USDm) Vessel opex (Indexed) 19.4 100 -30% -56% 74 13.3 70 -5% -36% 8.5 Dec-14 Dec-16 Run rate Q4-17 Dec-14 Dec-16 Run rate Q4-17 Onshore headcount (#) Warm stacking costs (Indexed) 78 100 90 -10% 19 -55% 59 22 -41% 35 2 Dec-14 Dec-16 Reduction
Slide 13: Operational review
Operational review
Slide 14: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region (USD millions) (USD millions) 30 30 25 25 21,4 21,4 20,1 20,1 20 20 15 15 13,3 10 21,3 8,0 10 21,3 8,0 16,3 2,2 5 2,6 5,9 5 2,6 2,4 2,4 6,9 5,9 1,7 2,2 2,4 1,9 2,0 0 0 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q2 201
Slide 15: Vessel utilization
Vessel utilization Vessel utilization 100% 3% • Q2 utilization of 18% 10 % 16% 90% 8% ‒ One vessel working in the EAME region 80% 5% 7% ‒ One vessel completing a project in the 70% 61% NSA region early in the quarter 71% 60% 82% 50% 40% 79% 75% 30% 7% 20% 36% 10% 22% 18% 0% Q2 16 Q3 16 Q4 16 Q1 17 Q
Slide 16: Tender and bid activity
Tender and bid activity Number of requests received 50 45 40 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 2015 2016 2017 16
Slide 17: Six new contract awards and LOIs
Six new contract awards and LOIs • 13 vessel months in announced new contract awards and LOIs: – Seismic source vessel contract in the Asia Pacific region (Voyager) with an expected duration of five to six months – 2D contract in West Africa starting in quarter two with a duration of approximately o
Slide 18: Option agreement with TGS
Option agreement with TGS • Signed option agreement with TGS Nopec to provide up to 600 vessel days of seismic services • The agreement offers TGS access to one or more SeaBird vessels to perform seismic services on a global basis • Call-off under the option agreement may be made throughout 2017; ag
Slide 19: Financial review
Financial review
Slide 20: Historical operating comparison
Historical operating comparison Revenues EBITDA 25 (USD millions) (USD millions) 22,2 12 10,7 20,4 10 20 8 6,8 15 6 6,9 6,3 4 10 21,4 20,1 8,4 2 Q4 16 Q1 17 Q2 17 0 5 Q2 16 Q3 16 (1,9) (0.1) 3,4 8,0 2,6 -2 2,6 2,4 -4 (2,9) (2,8) (6,1) 0 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 -6 Contract revenues Multi-client
Slide 21: Income statement Q2 2017
Income statement Q2 2017 CONSOLIDATED INTERIM STATEMENT OF INCOME Non- Quarter ended recurring 30 June Adjusted items All figures in USD millions (except EPS) 2017 2017 2017 2016 Contract 2.4 - 2.4 21.4 Multi-client 0.3 - 0.3 0.8 Total revenues 2.6 - 2.6 22.2 Cost of sales (5.7) (0.1) (5.6) (12.9) S
Slide 22: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended 30 June All figures in USD millions 2017 2016 Profit/(loss) before income tax (11.2) 0.4 Restructuring gain - - Other non-cash items 3.0 3.2 Paid income tax (0.2) (0.3) Working capital changes 3.8 (1.7) (Increase)/decrease
Slide 23: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 30 June All figures in USD millions (except for equity ratio) 2017 2016 Property, plant and equipment 42.4 62.6 Multi-client library 2.3 2.7 Other non-current assets 0.1 0.1 Inventories 1.1 2.9 Trade receivables 3.6 11.7 Other
Slide 24: Preliminary estimated restructuring impact
Preliminary estimated restructuring impact CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 30 June Preliminary All figures in USD millions (except for equity ratio) 2017 Adjustments proforma estimated Multi-client library 2.3 (2.3) - Other assets 53.4 - 53.4 Total assets 55.7 (2.3) 53.4 E
Slide 25: Multi-client update
Multi-client update Multi-client revenues (USD millions) 1,0 • Multi-client revenues in the quarter of 0,8 0,9 $0.3 million relating to late sales 0,8 0,6 0,6 0,7 0,4 • No new multi-client projects 0,4 0,3 0,3 performed in the second quarter 0,2 0,2 0,3 0,3 0,3 0,1 0,1 0,0 0,1 Q2 2016 Q3 2016 Q4 201
Slide 26: Provisions
Provisions • Incurred $1.5 million in operating Provisions costs and $0.1 million in interest USD millions expense that were charged against Opening balance 1 April 2017 3.0 provisions during the quarter Incurred cost (1.5) Interest expense 0.1 Ending balance 30 June 2017 1.6 • Remaining provision o
Slide 27: Summary and outlook
Summary and outlook
Slide 28: Outlook
Outlook • Company reorganization and cost optimization engaged into in H1-17 completed; further cost initiatives under review; EBITDA break-even achievable with two active vessels • Voyager Explorer started its source project in Q3 and Osprey Explorer expected to start on a new project in Q3 as well
Slide 29: SeaBird Exploration
3 Ay SeaBird Exploration