Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q2 2017 Earnings Presentation
21 slides from Electromagnetic Geoservices Asa's earnings presentation, Jul 27, 2017
Slide 1: Second Quarter 2017 Results
SECOND QUARTER 2017 RESULTS. Oslo, 27 July 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: Increase in Revenues and Positive EBITDA
Increase in Revenues and Positive EBITDA Operations • Continued multi-client investments in the Barents Sea • Mobilisation of the Deep Blue (JIP) source Financials • Revenues of USD 10.6 million (USD 3.9 million in Q1) • EBITDA of USD 4.5 million (USD -5.7 million in Q1) • Fully underwritten NOK 144
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: Second quarter performance | Increase in revenues and EBITDA
Second quarter performance | Increase in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues 20 Revenues • USD 10.6 million 15 10 12 • Mainly multi-client revenues in Norway 15 5 11 • EBITDA 0 4 4 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 • USD 4.5 million Contact sales Mult
Slide 6: Reduced operational costs
Reduced operational costs Quarterly operational cost base development* (USD million) Comments 30 • Operational costs base of USD 9.2 million 25 - Capitalised multi-client and JIP test expenses of USD 3.0 million 20 - Vessel lease expenses for one vessel (Atlantic 15 Guardian) 10 • Cost control 3 5 2
Slide 7: Small decrease in free cash in Q2
Small decrease in free cash in Q2 Quarterly free cash development (USD million) Comments 20 • Small net decrease in free cash of USD 0.9 18 million to USD 12.1 million 16 14 • Financing activities 12 • USD 8.5 million drawn on credit facility 10 • Fully underwritten NOK 144 million (USD 17.5 Cash co
Slide 8: Multi-client book value of USD 18.9 million
Multi-client book value of USD 18.9 million Overview of book value of multi-client library (USD million) Comments 16 • Reduction of book value from USD 21.6 million 14 previous quarter to USD 18.9 million 12 15.2 • Investments of USD 2.7 million - Barents Sea 10 • Amortisation of USD 2.3 million 8 -
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: Deep Blue Source installed on the Atlantic Guardian
Deep Blue Source installed on the Atlantic Guardian Commercial source system installed Deep Blue enables detection of deeper and smaller targets • First commercial survey started in July • High current output (up to 10,000 A) • Survey progressing as planned • High accuracy of output signal, position
Slide 11: Update on Norway and the 24th Licensing Round
Update on Norway and the 24th Licensing Round • CSEM supported wells in the Barents Sea yet to be drilled in 2017 (Koigen, Gemini North, etc) • Kayak (oil) and Blåmann (gas) are now confirmed as discoveries • 93 blocks are part of the 24th round in the Barents Sea and the multi-client library curren
Slide 12: Nytt oljefunn i Barentshavet (news article)
}@ ceo365.n0 | Nyheter Geojobb Events GEO Geofunn Om oss GEOBUZZ MuttiCueNT GEOPHYSICAL Nytt oljefunn i Barentshavet Statoil fant opp mot 50 millioner fat olje pa Kayak- prospektet i Barentshavet. Da kan vi konkludere med at den sterke EM-anomalien skyldes hydrokarboner. Spot the differer
Slide 13: Mexico's Shallow and Deepwater Rounds progressing
Rounds nd Deepwater Mexico’sin2Mexico are progressing License Round Announced CSEM data calibrated against existing wells shows a similar “Once track record as in the Barents Sea the prospects were drilled, an extraordinary match between proven hydrocarbons and areal distribution of resistivity was
Slide 14: Mexico - CSEM counts towards Minimum Work Program
Mexico - CSEM counts towards Minimum Work Program • CSEM counts as working units for the exploratory work program commitment incl. reprocessed MC • 16,000 sqkm of CSEM MC data available Excerpt from License contract: Source: Official bid-round web site at: http://rondasmexico.gob.mx. 14
Slide 15: Selection of current opportunities
Selection of current opportunities Norway: • Coverage in the Barents Sea expanded in Q2 2017 in anticipation of the nominations and announcements Canada: during the 24th licensing round (60% covered) • MC data covering Flemish Pass basin available for sale • Prefunding received for work outside of t
Slide 16: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Work awarded in Q2 2017 will keep the Guardian 25 busy through the end of Q3 2017 • Prospects being developed to put Thalassa back at 20 work at the commencement date of the firm charter period on 1 O
Slide 17: Increase in Revenues and Positive EBITDA
Increase in Revenues and Positive EBITDA Operations • Continued multi-client investments in the Barents Sea • Mobilisation of the Deep Blue (JIP) source Financials • Revenues of USD 10.6 million (USD 3.9 million in Q1) • EBITDA of USD 4.5 million (USD -5.7 million in Q1) • Fully underwritten NOK 144
Slide 18: Questions?
aw emegs Questions? Spot the difference.
Slide 19: Consolidated Income Statement
Consolidated Income Statement First half year First half year Q2 2017 Q2 2016 2017 2016 2016 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Unaudited Audited Operating revenues Contract sales 474 388 1,175 13,426 21,797 Multi-client pre-funding 4,369 0 5,199 0 579 Multi-client late sales 5,800
Slide 20: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Half year ended Half year ended Year ended Half year ended Half year ended Year ended 30 June 2017 30 June 2016 31 December 2016 30 June 2017 30 June 2016 31 December 2016 Amounts i n USD 1 000 Unaudited Unaudited Audited Amounts i n USD 1 000 Unaudited U
Slide 21: Largest shareholders as of 26 July
Largest shareholders as of 26 July # 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 FA
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