Slide 1: SeaBird Exploration Second Quarter Presentation
SeaBird Exploration Second Quarter Presentation 15 August 2019 CEO Hans Petter Klohs 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 • Summary and outlook • Q&A 3
Slide 4: Highlights
Highlights
Slide 5: Q2-19 Highlights
Q2-19 Highlights Key financial & operational figures • Revenues of $9.2 million ($12.3 million Q1 2019) • EBITDA of negative $1.7 million (positive $2.7 million Q1 2019) – Includes loss provision for Q3 on Nordic Explorer of $1.3 million • EBIT of negative $7.2 million (positive $0.1 million Q1 2019
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) (USD millions) 14 14 12.3 12.3 12 12 2.0 10 10 8.3 8.3 8 6.8 9.4 8 6.8 1.0 5.4 6 5.4 6 4.7 4.7 2.6 6.9 10.3 4 2.9 5.3 4 2.2 2.9 3.1 6.4 4.3 2.8 2 4.7 2 0.8 - 2.9 2.9 1.4 1.2 1.4 0.5 2.1 1.4 1.2 0.9 1
Slide 8: Operational issues in West Africa and South America
Operational issues in West Africa and South America • 3D survey in West Africa with Nordic Explorer is estimated to be completed mid September; two months later than the original plan – Acquired with 2 streamers (instead of 4 streamers) – The project will have negative margin of $1.4 million; onerou
Slide 9: "Digistreamer" problems - causes and status
“Digistreamer” problems - causes and status BACKGROUND • The “Harrier Explorer” was reactivated in 2018 and acquired six 2D surveys in the period August 2018 to February 2019 with good operational performance • The “Nordic Explorer” was chartered-in (including streamers) ROOT CAUSE • Increased repai
Slide 10: Fleet overview
Fleet overview Three modern vessels added and one vintage vessel retired last twelve months 2D and source vessels 3D/2D and source vessels EM vessel Harrier Explorer Osprey Explorer Voyager Explorer Eagle Explorer Petrel Explorer 2D - 1 X 12 Km 2D - 1 X 12 Km 3D-SW - 4 X 6 Km 3D - 6 X 8 Km Configure
Slide 11: Strengthened balance sheet
Strengthened balance sheet • Acquired the “Eagle Explorer”, “Boa Thalassa” and “Boa Galatea” for approximately $40 million during the last twelve months – 70-80% discount to new build cost – 100% financed with equity • Significant pool of in-sea equipment worth about $10 -15 million in second hand m
Slide 12: Operational update
Operational update Six vessels in operation during the quarter • Harrier Explorer (NSA) Q2 2019 VESSEL – Completed source project in the US Gulf of Mexico APR APR APR APR M AY M AY M AY M AY JUN JUN JUN JUN – Started on new 2D project in South America VOYAGER OSPREY • Eagle Explorer (GoM) HARRIER –
Slide 13: SeaBird fleet positioning
SeaBird fleet positioning Eagle Explorer Fulmar Explorer North-West Europe North-West Europe Osprey Explorer Transit to North West Europe Harrier Explorer South America Petrel Explorer South-East Asia Nordic Explorer West Africa Voyager Explorer South-East Asia • Fulmar Explorer transited to Norway
Slide 14: Contract update
Contract update • Eagle Explorer – Source contract with CGG in Northern Europe, estimated completion late August – 2D survey in Norway with estimated duration of one month • Petrel Explorer – Contracted with EMGS until March 2020 – Options for EMGS to extend for two periods of six months each • Harr
Slide 15: Market trends
Market trends • Ocean bottom seismic (OBS) market remains in structural growth trend – Demand largely driven by the oil & gas companies’ focus on increased oil recovery on producing fields, as well as near-field exploration – Indications of a busy 2020 for OBS, with a combination of proprietary surv
Slide 16: Tender activity in SeaBird markets
Tender activity in SeaBird markets Logged leads (vessel months) Source 2D 3D 16 27 22 11 20 1 4 1 28 11 34 1 16 3 50 14 30 6 19 20 79 63 53 50 43 44 32 27 26 30 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 • Healthy OBN related tendering activity – Year-over-year g
Slide 17: Financial review
Financial review
Slide 18: Historical operating comparison
Historical operating comparison Revenues EBITDA (USD millions) 14 (USD millions) Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 12 3 2.7 2 2.7 10 0.9 8 1 12.3 0 6 (1.2) -1 (1.4) 4 8.3 (1.7) 6.8 (1.2) 5.4 -2 (2.8) 2 (1.7) 2.9 (2.3) -3 0 (2.8) Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 -4 Contract revenues Multi-client revenues EB
Slide 19: Vessel utilization
Vessel utilization Vessel utilization 100% 3% 7% 8% • Q2 utilization of 68% for whole fleet 90% 24% 80% 24% 42% 36% ‒ Six vessels active 70% 60% 78% 7% 50% 8% ‒ Osprey Explorer and Harrier Explorer in yard during the quarter to upgrade equipment 40% 76% 68% 30% 51% 47% 20% 10% 22% 0% Q2 18 Q3 18 Q4
Slide 20: Income statement Q2 2019
Income statement Q2 2019 CONSOLIDATED INTERIM STATEMENT OF INCOME Q2 2019 Q2 2018 • Revenues negatively affected by project delays All figures in USD millions (except EPS) Actual Actual on Nordic and Harrier Explorer Contract 8.3 2.9 Multi-client 0.9 - Total revenues 9.2 2.9 Cost of sales (9.4) (3.5
Slide 21: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 30 June All figures in USD millions (except for equity ratio) 2019 2018 Property, plant and equipment 47.3 25.3 MultiClient Investment 1.1 0.0 Other non-current assets 0.6 0.1 Inventories 2.1 0.9 Trade receivables 5.5 2.7 Other
Slide 22: Cash flow statement
Cash flow statement CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Quarter ended 30 June All figures in USD millions 2019 2018 Profit / (loss) before income tax (6.5) (4.6) Non-cash effects of restucturing - - Depreciation, amortization and impairment 5.6 1.7 Other items (0.1) 2.1 Movement in provision
Slide 23: Multi-client status
Multi-client status Multi-client revenues (USD millions) 1.0 Multi-client revenues 0.8 • $0.9 million multi-client revenues in the quarter 0.6 0.8 • $0.8 million in recognized 0.4 prefunding from 2018 0.2 projects 0.1 • $0.1 million in additional 0.0 - Q2 2018 - Q3 2018 - 0.0 Q4 2018 - Q1 2019 Q2 20
Slide 24: Summary and outlook
Summary and outlook
Slide 25: Summary & Outlook
Summary & Outlook Q2 revenue and EBITDA hampered by technical issues on two vessels Structural growth in OBN seismic and early cyclical growth in 2D/3D demand Day rates increased 20-30% YoY Fleet renewal completed – enlarged and versatile service offering Strengthened balance sheet 25
Slide 26: SeaBird Exploration Q&A
Q&A a SeaBird Exploration