17 slides from Electromagnetic Geoservices Asa's earnings presentation, Jul 26, 2018
Slide 1: Q2 2018 Results
Q2 2018 RESULTS Oslo, 26 July 2018 Christiaan Vermeijden, CEO Hege Veiseth, CFO
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: Increase in revenues and Comprehensive refinancing completed
Increase in revenues and Comprehensive refinancing completed Operations • Expanded the library in Norway • Completed one prefunded survey in the North Sea • Mobilised for a second prefunded survey in the North Sea Financials • Revenues of USD 7.9 million (USD 4.3 million in Q1) • EBITDA of negative
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Second quarter performance I Increase in revenues and EBITDA
Second quarter performance I Increase in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues 12 Revenues 10 • USD 7.9 million 8 6 11 • New revenue recognition standard 4 8 11 8 implemented last quarter 2 4 0 • Vessel utilisation of 31% Q2'17 Q3'17 Q4'17 Q1'18 Q2'
Slide 6: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q2 18 of USD 10.9 million 10 2.2 • Higher than Q2 2017 as Thalassa was off-hire in Q2 last year 1.5 • Lower than Q1 2018 as a result of Thalassa being 5 3.7 idle and holiday pay in Q2
Slide 7: Increase in free cash in Q2
Increase in free cash in Q2 Quarterly free cash development (USD million) Comments • Net increase in free cash of USD 3.6 million to USD 15.4 million • Comprehensive refinancing completed • USD 11.7 million net proceeds from the rights issue • New convertible bond of USD 32.5 million • Repayment of
Slide 8: Multi-client book value of USD 16.8 million
Multi-client book value of USD 16.8 million Multi-client library – NBV (USD million) Comments • Increase in book value from USD 16.3 million 20 previous quarter to USD 16.8 million 15 • Investments of USD 2.2 million • North Sea and Barents Sea 10 • Amortisation of USD 1.7 million 5 - Straight-line
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: 3D CSEM work commitments 24th round Norway
PL964 3D CSEM MC coverage 3D CSEM work commitments Phase Duration Activity / decision Offered acreage 24th round 24th round Norway 1 (years) 3 Acquire 3D CSEM data Acquire 3D seismic (Across PL963 7 out of 12 licenses have a all prospective area) Reprocess 3D seismic Phase Duration Activity / decisi
Slide 11: Extending the same practice elsewhere..
Extending the same practice elsewhere.. CSEM now counts as work units in: - Mexico - Brazil - Uruguay - Argentina Dialogues ongoing with other Lat-Am countries for possible inclusion ahead of bid-rounds. Mexico & Brazil • CSEM counts as working units for the exploratory work programs • Multi-client
Slide 12: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Prefunded and strategic data acquisition programs in 8 the North Sea will keep the Atlantic Guardian busy 7 through Q3 2018 6 • Well positioned to capitalise on the 24th round in Norway 5 • Upward mom
Slide 13: Increase in revenues and Comprehensive refinancing completed
Increase in revenues and Comprehensive refinancing completed Operations • Expanded the library in Norway • Completed one prefunded survey in the North Sea • Mobilised for a second prefunded survey in the North Sea Financials • Revenues of USD 7.9 million (USD 4.3 million in Q1) • EBITDA of negative
Slide 14: Questions?
aw emegs Questions? Spot the difference.
Slide 15: Consolidated Income Statement
Consolidated Income Statement First half year First half year Q2 2018 Q2 2017 2018 2017 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Unaudited Unaudited Restated* Restated* Restated* Operating revenues Contract sales 197 474 312 1,175 2,583 Multi-client pre-funding 0 1,991 2,540 3,066 11
Slide 16: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 30 June 2018 30 June 2017 31 December 2017 30 June 2018 30 June 2017 31 December 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Amounts i n USD 1 000 Unaudited Unaudited Unaudited Restated* Restated* Restated* Restated* ASSETS EQUITY Non-current
Slide 17: Largest shareholders as of July 2018
Largest shareholders as of 25 July 2018 # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 31 327 467 23.92 2 PERESTROIKA AS 29 452 795 22.49 3 MORGAN STANLEY & CO. LLC 25 891 805 19.77 4 BÆKKELAGET HOLDING AS 5 010 000 3.83 5 SPORTSMAGASINET AS 4 329 090 3.31 6 ROSENFONN INVEST AS 2 148 705 1.64