Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q4 2018 Earnings Presentation
18 slides from Electromagnetic Geoservices Asa's earnings presentation, Jan 30, 2019
Slide 1: Q4 2018 Results
Q4 2018 RESULTS Oslo, 30 January 2019 Bjørn Petter Lindhom, 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: 2018 Highlights
2018 Highlights 2018 Full Year Financials • Revenues of USD 31.6 million (down from USD 33.9 million in 2017) • EBITDA of neg. USD 10.6 million (down from USD 2.9 million in 2017) 2018 Sales & Operations • Dominated by multi-client revenues in Norway • Multi-client surveys in Asia Pacific • Propriet
Slide 4: Financial review
awemegs Spot the difference.
Slide 5: Fourth quarter performance | Increase in revenues and EBITDA
Fourth quarter performance | Increase in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues 15 Revenues • USD 13.4 million 10 13 11 • New revenue recognition standard 5 8 implemented in 2018 4 6 0 • Vessel utilisation of 32% Q4'17 Q1'18 Q2'18 Q3'18 Q4'19 Contact
Slide 6: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q4 18 of USD 13.2 0.4 1.7 million 10 • One-off: USD 1.0 million tax reversal in Brazil 4.0 • Increase in yearly operational cost base to USD 5 7.1 48.2 million (USD 42.0 million in 20
Slide 7: Decrease in free cash in Q4
Decrease in free cash in Q4 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 3.0 million to USD 6.5 million • Trade receivables increased by USD 2.1 million to USD 4.6 million • USD 0.7 million in interest-payments on interest bearing debt • Total investments
Slide 8: Multi-client book value of USD 12.6 million
Multi-client book value of USD 12.6 million Multi-client library – NBV (USD million) Comments • Decrease in book value from USD 14.9 million 20 previous quarter to USD 12.6 million in Q4 2018 15 • Investments of USD 0.4 million in MC data • Research study west of Svalbard 10 • Amortisation of USD 2.
Slide 9: Operations, Market and Outlook
Operations, Market and Outlook
Slide 10: EMGS’ Vision
EMGS’ Vision “Make EM an integral part of the E&P workflow” Oil Company Exploration Workflow (e.g. Shell)* Trap - Reservoir – Charge – Seal Seismic interpretation Lead/play Probability of geological success (Pg) and mapping identification Probability of economic success (Pe) Gross Rock Volume Reserv
Slide 11: Norway
Norway • CSEM continues to become more established in the exploration workflow for oil and gas companies in the Barents Sea • In 2018, a significant number of the licenses awarded in the 24th licensing round had CSEM related work commitments • Additional CSEM commitments were announced in 2018 APA r
Slide 12: Latin America exploration
Mexico Colombia, Trinidad&Tobago, Guyana and Suriname • 16,000km2 of 3D CSEM MC • Hotspot basins with renewed industry interest • Established region for CSEM • Multiple sensitivity modeling studies recently performed for oil and gas companies indicate suitable geology for CSEM surveys • CSEM counts
Slide 13: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Completion of survey in South America 8 • Recent APA awards with EM commitments 7 • Increased tender and request for quotation activity 6 in Asia, Latin America and West Africa 5 • Market expected to
Slide 14: 2018 Highlights
2018 Highlights 2018 Full Year Financials • Revenues of USD 31.6 million (down from USD 33.9 million in 2017) • EBITDA of neg. USD 10.6 million (down from USD 2.9 million in 2017) 2018 Sales & Operations • Dominated by multi-client revenues in Norway • Multi-client surveys in Asia Pacific • Propriet
Slide 15: awemegs Spot the difference
awemegs Spot the difference
Slide 16: Consolidated Income Statement
Consolidated Income Statement Q4 2018 Q4 2017 2018 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Unaudited Restated* Restated* Operating revenues Contract sales 6,296 965 7,176 2,583 Multi-client pre-funding 2,497 2,297 8,804 11,295 Multi-client late sales 3,887 6,869 12,781 19,132 Other
Slide 17: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2018 31 December 2017 31 December 2018 31 December 2017 Amounts in USD 1 000 Unaudited Unaudited Amounts in USD 1 000 Unaudited Unaudited Restated* Restated* ASSETS EQUITY Non-current assets Capital and reserves attributable to equity holders
Slide 18: Largest shareholders as of 29 January 2019
Largest shareholders as of 29 January 2019 # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 31 327 467 23.92 2 PERESTROIKA AS 29 452 795 22.49 3 MORGAN STANLEY & CO. MS & CO LLC 25 891 805 19.77 4 BÆKKELAGET HOLDING AS 5 199 160 3.40 5 SPORTSMAGASINET AS 4 329 090 3.31 6 ROSENFONN INVEST AS 2 14
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