Slide 1: SeaBird Exploration Fourth Quarter Presentation
SeaBird Exploration Fourth Quarter Presentation 23 February 2018 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 • Highlights • Market and operational review • Financial review • Strategy and outlook • Q&A 3
Slide 4: Highlights
Highlights
Slide 5: Q4-17 Highlights
Q4-17 Highlights Financial results • Revenues of $5.5 million ($2.7 million Q3 2017) • Adjusted EBITDA of negative $1.5 million (negative $5.0 million Q3 2017) • Adjusted EBIT of negative $3.6 million (negative $8.2 million Q3 2017) • Equity of gross NOK 105 million raised in private placement and r
Slide 6: Market and operational review
Market and operational review
Slide 7: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region (USD millions) 10 (USD millions) 10 8.0 8.0 8 8 5.5 6 5.5 6 5.9 4 4 2.5 2.6 2.7 2.6 2.4 2.7 2.4 5.9 5.3 2 2 2.4 2.4 2.2 2.4 2.0 0.9 0 - 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2
Slide 8: Operations & commercial activity
Operations & commercial activity • Voyager Explorer currently operating on a 8 month seabed seismic project in APAC, and is expected to remain on contract at least through Q1-18. Work scope was extended 3 months beyond original schedule. • Osprey Explorer successfully completed a source contract in
Slide 9: Tender and bid activity
Tender and bid activity Continued Q4 tendering activity in line with prior quarters 9
Slide 10: Fleet overview
Fleet overview A fleet of 4 vessels adapted to flexible service offering and matching industry technical requirements 2D and source vessels SW1)-3D vessels Aquila Explorer Osprey Explorer Harrier Explorer Voyager Explorer 2D - 1 X 12 Km 2D - 1 X 12 Km 2D - 1 X 12 Km 3D-SW - 4 X 6 000m Source Source
Slide 11: Financial review
Financial review
Slide 12: Historical operating comparison
Historical operating comparison Revenues EBITDA (USD millions) (USD millions) 9 8.4 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 8 0 (1.9) (0.1) (1.5) 7 -2 (5.0) (2.1) 6 5.5 -4 (2.9) (2.8) (6.3) 5 -6 (6.3) 4 8.0 -8 3.4 3 2.6 2.7 -10 5.5 2 -12 2.6 2.4 2.7 1 -14 0 -16 (14.4) Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA adju
Slide 13: Vessel utilization
Vessel utilization Vessel utilization 100% • Q4 utilization for available vessels of 90% 42% 80% • 100% utilization on two active vessel 70% 61% 58% in the quarter 71% 60% 78% 82% ‒ Osprey Explorer active in South 50% America 40% ‒ Voyager Explorer active in Southeast Asia 30% 7% 20% 36% 42% • North
Slide 14: Income statement Q4 2017
Income statement Q4 2017 CONSOLIDATED INTERIM STATEMENT OF INCOME Non- Quarter ended recurring 31 December Adjusted items All figures in USD millions (except EPS) 2017 2017 2017 2016 Contract 5.5 - 5.5 2.6 Multi-client - - - 0.9 Total revenues 5.5 - 5.5 3.5 • Adjusted cost of sales Cost of sales (4.
Slide 15: Summary non-recurring charges
Summary non-recurring charges OVERVIEW OF ADJUSTMENTS USD millions Cost of sales Northern Explorer transit costs 0.4 Munin Explorer charges 0.1 SG&A Office closing costs and restructuring 0.2 Operational restructuring gain Loss from increase in amortized cost of debt 0.1 1) Gain from return of multi
Slide 16: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended 31 December All figures in USD millions 2017 2016 Profit / (loss) before income tax (5.8) (6.9) Depreciation, amortization and impairment 2.7 3.6 Movement in provision (0.4) (2.3) Working capital (4.3) 10.2 Increase/(decre
Slide 17: Cashflow and liquidity observations
Cashflow and liquidity observations • Cash use in quarter four largely attributable to operational optimization and one- time items KEY Q4 OPERATIONAL CASH FLOW ITEMS USD millions Decommissioned vessels 1.1 Payable unwind 3.7 Financial advisory expenses 1.4 SG&A at previous levels 0.6 Total 6.8 • Wi
Slide 18: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 31 December All figures in USD millions (except for equity ratio) 2017 2016 Property, plant and equipment 28.4 47.5 Multi-client library - 3.1 Other non-current assets 0.1 0.1 Inventories 1.0 1.3 Trade receivables 1.2 2.1 Other
Slide 19: Multi-client update
Multi-client update Multi-client revenues (USD millions) 1.0 0.9 • No multi-client revenues in the 0.8 quarter 0.6 0.6 • Major part of multi-client library 0.4 exchanged for Tranche A SBX04 0.4 0.3 bonds during quarter three 0.2 0.3 0.3 • Three surveys to remain with 0.0 0.0 0.0 company Q4 2016 Q1 2
Slide 20: Termination of Munin Explorer charter agreement
Termination of Munin Explorer charter agreement • Agreed termination of the charter party agreement and redelivery of the vessel subsequent to quarter end • The transaction is conditional on the fulfilment of certain preconditions and is expected to be approximately cash neutral to the company in 20
Slide 21: Strategy and outlook
Strategy and outlook
Slide 22: Company positioning
Company positioning Targeting growing niche segments • 2D, source & shallow-water 3D specialist addressing exploration and production needs across cycles • Production-enhancement seismic – Increasing demand for OBS (ocean bottom seismic) will create a growth cycle for source vessel providers – SeaBi
Slide 23: A global multi-service offering
A global multi-service offering Servicing customers globally Scale & scope in operations Aquila Explorer Harrier Explorer Voyager Explorer Osprey Explorer Multi client library and surveys 23
Slide 24: A diversified blue-chip client base
A diversified blue-chip client base • History of operational excellence ensures blue-chip client base • Leading QHSE systems prequalifies the company to work with most oil majors, which sets SeaBird apart from competitors Major oil National oil Independent oil Seismic Surface Seabed 24
Slide 25: Market trends
Market trends 2D • Traditionally muted demand for frontier exploration during downturns • Competitive pressure from 3D vessel owners has eased • Potential opening of US offshore should create significant 2D demand Source • Structural demand growth within ocean bottom seismic potentially creating a s
Slide 26: Source vessel demand expected to rise
Source vessel demand expected to rise • Ocean Bottom Seismic is expected to OBS expected market growth see strong growth going forward • Source vessel demand is tied to the growth in OBS – Used to send signals to the ocean bottom receivers – Needed regardless of OBS technology choice • Different typ
Slide 27: Strategy going forward
Strategy going forward • Continue to develop a market leadership position in targeted niche markets – Exploration-oriented 2D acquisition – Production-oriented Source services (seabed nodes, undershoot, wide azimuth) – Niche shallow-water 3D acquisition (4-6 streamers) • Address both contract seismi
Slide 28: Summary
Summary • The company has completed the in-depth operational and financial reorganization of its historical organization. As the cost structure, asset base and liquidity runway is now aligned with current market conditions, SeaBird is well poised to benefit from future market uptick and evolving tec
Slide 29: TTT \ PULA "3h
TTT \ 0 PULA 280 "3h SeaBird Exploration