Slide 1: SeaBird Exploration Third Quarter Presentation
SeaBird Exploration Third Quarter Presentation 28 November 2014 CEO Dag Reynolds 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: Highlights
Highlights Financial results • Revenues of $22.7 million ($44.7 million Q2 2014) • EBITDA of negative $2.1 million (positive $12.6 million Q2 2014) Quarterly observations • Market softness impacting results and utilization – Reduction in contract revenue – 65% fleet utilization in the third quarter
Slide 4: Financial summary
Financial summary
Slide 5: Historical operating comparison
Historical operating comparison Revenues EBITDA 60 (USD millions) 15 (USD millions) 50,9 13,2 12,6 50 12 44,7 10,2 40 38,7 33,7 9 30 22,7 6 49,1 3,9 20 41,0 3 33,6 30,5 10 0 16,4 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 0 -3 (2,1) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Contract revenues Multi-client revenues Capital ex
Slide 6: Vessel utilization
Vessel utilization 100% 1% 3% 0% 2% • Increased multi-client utilization 8% 13% 90% 24% 7% ‒ 30% in Q3 2014 compared to 13% 4% 33% in Q2 2014 80% 13% 41% 70% 12% • Q3 contract utilization of 35%, down from 72% in Q2 60% 3% • Transit time 33% of fleet capacity 50% 30% 40% 82% • Yard stays account for
Slide 7: Improving backlog
Improving backlog Firm contracts1) Backlog Vessel Expected Expected Amount (USD (USD millions) Vessel Client/Project months start-up completion millions) TGS Nopec - Mexico / US East coast (MIN program) 40 Q1 2015 88 Up to 6 vessels 300 1 vessel Caribbean 5 Feb-15 Jul-15 12 264 Aquila Explorer Austr
Slide 8: Income statement
Income statement CONSOLIDATED INTERIM STATEMENT OF INCOME Quarter ended Nine months ended 30 September 30 September All figures in USD millions (except for EPS) Restated Restated 2014 2013 2014 2013 Contract 16.4 49.1 87.9 132.6 Multi-client 6.3 1.8 13.3 5.9 Total revenues 22.7 50.9 101.2 138.5 Cost
Slide 9: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended Nine months ended 30 September 30 September All figures in USD millions Restated Restated 2014 2013 2014 2013 Profit/(loss) before income tax (19.5) 3.4 (26.9) 0.1 Non-cash items 16.6 8.9 45.1 26.0 Paid income tax (0.4) (0
Slide 10: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of As of 30 September 31 December All figures in USD millions (except for equity ratio) Restated Restated 2014 2013 2013 Property, plant and equipment 112.9 129.4 122.8 Multi-client library 21.1 6.6 7.1 Other non-current assets 1.
Slide 11: Multi-client update
Multi-client update • Multi-client revenues in Q3 of $6.3 million Multi-client revenues by quarter 8 (USD millions) 6,3 – Revenues from eight different projects 6 5,1 – Predominantly relates to prefunding for 3,7 4 3,2 2014 surveys 1,8 2 • Multi-client investment1) was $15.1 0 Q3 2013 Q4 2013 Q1 201
Slide 12: Refinancing update
Refinancing update Status update • Hawk Explorer lease extended to 29 February 2016 • Perestroika convertible bond ($14.9 million) and SBX03 bond ($81.9 million) classified as short term debt due to breach of covenants – Revaluation of SBX03 principal from amortized costs to nominal value; impacting
Slide 13: Review of financing
Review of financing COVENANT RESTRICTIONS Equity USD millions AP +60 ratio Cash 30 September 2014 $6.8 16.1% $10.0* Restrictions 30 September 2014 < $2.5 25.0% ≥$10.0 *Includes $3.5 million of restricted cash Funded debt profile (USD millions) 120 103,0 103,0 100 6,2 6,2 14,9 14,9 80 60 40 81,9 81,9
Slide 14: Restructure to improve efficiency and reduce costs
Restructure to improve efficiency and reduce costs Restructuring of onshore activities Targeted savings (USDm) • Consolidate offices to improve efficiency and cost structure – “One company” with primary functions in Oslo Run-rate • Removing costly expat set-up in Dubai savings of $10 million per yea
Slide 15: Operational review
Operational review
Slide 16: Segment operating activity
Segment operating activity Contract revenue by survey type Contract revenue by region 60 (USD millions) (USD millions) 60 50 12,2 50 40 9,3 40 18,3 30 16,6 8,6 13,4 10,1 30 10,9 20 10,0 6,8 14,0 20 23,7 31,7 12,0 6,2 5,8 10 20,3 20,4 6,8 10 20,8 2,3 11,0 10,2 10,7 14,3 7,1 7,3 0 - - 0,4 0 Q3 2013 Q4
Slide 17: Excess 3D supply in 2D market
Excess 3D supply in 2D market • Approximately thirteen vessels up to Vessels removed or converted to source in 2013 Vessel Owner/Operator Operational streamer capacity 12-streamers operating in SeaBird's Geo Barents CGG 8 core segments during 2014 Western Pride Western Geco 8 Western Patriot Western
Slide 18: Fleet review
Fleet review • SeaBird natural market leader in 2D and niche 3D • Vessel lease agreements extended – Hawk Explorer lease extended until February 2016; the remaining principal of $6.2 million to be repaid over the remaining lease period – Bareboat charter agreement for Voyager Explorer renewed for tw
Slide 19: TGS letter of award
TGS letter of award • Expected start-up in 1H 2015 • Up to six vessels active for a period of up to three years • Revenues estimated at $88 - $176 million – Minimum 150,000 km, up to 300,000 km – Approximately 40-80 vessel months 19
Slide 20: Multi-client developments
Multi-client developments • Increased multi-client activity in the quarter • Three multi-client projects completed and two commenced in the third quarter – Geo Pacific completed 3D project in West Africa early September – Voyager Explorer completed the Pinatubo survey in the Philippines late August
Slide 21: Philippines multi-client surveys
Philippines multi-client surveys • Pinatubo broadband 2D seismic survey in the West Luzon Basin North-West of the Philippines – 3,474 km of seismic data aquired Pinatubo – Survey completed August 2014 – Includes coverage over the PECR5 bid round blocks 8,9,10 & 11. Philippines • Mialara broadband 2D
Slide 22: Rockall multi-client survey
Rockall multi-client survey • 2D broadband seismic survey in the North Rockall Basin West of the Hebrides – 4,775 km of seismic data aquired in two phase – Survey compeleted August 2014 • Seismic survey is matching the 28th UK offshore licensing, announced in mid November 22
Slide 23: South Porcupine multi-client survey
South Porcupine multi-client survey • 2D broadband seismic survey in the South Porcupine Basin offshore South-West Ireland – 4,878 km of seismic data aquired – Survey compeleted October 2014 • Final processed data available to clients in February for the upcoming Q2-2015 Ireland Licensing Round 23
Slide 24: Multi-client library
Multi-client library 2014 surveys 2013 surveys Pre 2013 surveys Ongoing surveys 24
Slide 25: Market outlook
Market outlook 2D High end (USD thousand) • Current market softness likely to impact 140 $125 $125 120 rates and earnings for remainder of 2014 $110 $110 $110 $110 100 – 2D market demand substantially weaker; 80 $90 $90 $90 $90 $90 however, seeing healthy interest in long term 60 $80 2D contract opp