Fjord Defence Group Asa · OSL:DFENS
Fjord Defence Group Asa — Carbon Transition — Q3 2022 Earnings Presentation
14 slides from Fjord Defence Group Asa's earnings presentation, Nov 9, 2022
Slide 1: Carbon Transition Q3 2022
08.11.2022 Carbon Transition Q3 2022 9 November 2022
Slide 2: Disclaimer
Disclaimer • The information in this presentation has been prepared by Carbon Transition ASA (the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presentation has be
Slide 3: Quarterly highlights
Quarterly highlights • First multi-client late sale of USD 1.6 million from Gulf of Suez survey o Significantly earlier than anticipated o Data processing recently completed • Fair value of multi-client library USD 31.9 million • Fair value of investments of USD 11.1 million o Includes new USD 2.0 m
Slide 4: High-value seismic business
High-value seismic business Maximizing value of seismic operations • Specialize in multi-client data for near-field exploration where production infrastructure is in place o E&P companies need high quality seismic data to unlock existing potential o In areas where resources can be developed with low
Slide 5: Seismic market observations
Seismic market observations Significant improvement in market conditions • EU energy security is emerging as a mega trend for North Sea E&P investments • Licensing rounds, M&A, new entrants and increased drilling activity near existing infrastructure to support activity and multi-client revenues • M
Slide 6: Multi-client portfolio: Norwegian North Sea – Utsira OBN
Multi-client portfolio Norwegian North Sea – Utsira OBN • Estimated fair value of USD 21.9 million • Near-field survey located to the west of the Utsira high in the Norwegian North Sea • Covers approximately 2,000 square kilometers of highly prospective acreage with high-definition 3D seismic ocean
Slide 7: Multi-client portfolio: Egypt
Multi-client portfolio Egypt – Gulf of Suez • Estimated fair value USD 9.9 million • Inaugural late sale USD 1.6 million in Q3 2022 • Drilling campaigns underway • Prolific petroleum basin o Exploration historically impeded by complex geology and presence of salt bodies o Multi-client data structure
Slide 8: Investment in the quarter
Investment in the quarter Dolphin Drilling • Invested USD 2.0 million in Dolphin Drilling o The share price closed at NOK 11.85 per Q3 2022 o Significant appreciation following quarter end • Providing drilling services to the harsh environment and mid-water market for the oil and gas industry • Comp
Slide 9: Net asset value
Net asset value Summary NAV per share review USD NOK per Observations millions share • Legacy business represents largest share of NAV Multi-client library 31.9 1.47 o Multi-client investments Financial assets 3.0 0.14 Legacy business 34.9 1.61 o Node equipment earn-out agreement • Investment portfo
Slide 10: Comprehensive income
Comprehensive income USD millions Comprehensive income Q3 2022 Observations • Frist Gulf of Suez late sales of USD 1.6 million Revenue 1.6 • Non-cash reduction in value of investments of USD 3.4 Changes in fair value of investments (3.4) million Cost of sale (non-cash reclass cost KUSD 150) (0.2) Se
Slide 11: Financial position
Financial position Observations • Utsira at USD 21.9 million, Gulf of Suez at USD 9.9 USD millions million ASSETS 30.9.2022 • NPV node equipment earnout - financial assets of USD 3.0 million Multi-client library 31.9 • Trade receivable from multi-client late sales; Investments 11.1 collected subsequ
Slide 12: Cash flow
Cash flow USD millions Cash flow Q3 2022 Observations • Trade receivables of USD 1.6 million collected in Q4 Profit (loss) before tax (3.8) Taxes paid (0.0) • Investment in own shares of USD 0.5 million Changes in fair value for investments 3.4 • Invested in Dolphin Drilling AS of USD 2.0 million Am
Slide 13: Outlook
Outlook • Global uncertainty likely to result in continued volatility in energy prices • Expect oil and gas prices to remain at historically high levels for foreseeable future o Attractive pricing will encourage capital expenditures o Reliable energy supply will remain a focal point and support capi
Slide 14: Investing in a sustainable future
Investing in a Askekroken 11 carbn.no sustainable future. 0277 Oslo Copyright © 2021 Norway Carbon Transition