Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2020 Earnings Presentation
13 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Results
Q3 2020 RESULTS Oslo, 5th November 2020 Bjørn Petter Lindhom, CEO Anders Eimstad, 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: Q3 2020 Operational and financial highlights
Q3 2020 Operational highlights • Atlantic Guardian cold stacked for the entire quarter • Continue transition towards low-cost set-up Financial highlights • Revenues of USD 2.1 million • EBITDA of negative USD 0.2 million • Adjusted EBITDA of negative USD 1.2 million Subsequent events • Multi-client
Slide 4: Operations, Market and Outlook
Operations, Market and Outlook
Slide 5: Market outlook and industry collaborations
Market outlook and industry collaborations • CSEM market expected to remain challenging • Transition to low-cost setup on schedule • EMGS working towards restarting data acquisition in 2021 • EMGS signed a collaboration with Ocean Floor Geophysics (OFG) to collaborate on CSEM opportunities worldwide
Slide 6: Norwegian Multi-Client library and 25th License Round
Norwegian Multi-Client library and 25th License Round • Proposed areas for the 25th round includes 9 areas and a total of 136 blocks, of which 125 are in the Barents Sea and 11 in the Norwegian Sea • EMGS expects that the round will generate both late sale and new acquisition opportunities • EMGS, i
Slide 7: Wells drilled this year
Wells drilled this year DRY • A 4th well (Mist) has been drilled where EMGS has multi- client coverage • It did not have a CSEM anomaly and was announced as dry • All 4 wells were targeting prospects without any CSEM DRY anomalies, and all came in unsuccessful (dry) • Grind (6507/8-10S) – Dry • Gabr
Slide 8: Financial review
awemegs Spot the difference.
Slide 9: Third quarter 2020 performance I Development in revenues and EBITDA
Third quarter 2020 performance I Development in revenues and EBITDA Key financial metrics Quarterly development (USD million) • Revenues Revenues 40 37 • USD 2.1 million total revenue 30 27 • USD 0.6 million contract sales 20 11 10 8 2 • USD 0.1 million late sales 0 • Vessel utilisation of 0% Q3'19
Slide 10: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q3 20 of USD 3.3 million 4.8 • USD 6.3 million lower than Q2 20 • Atlantic Guardian cold stacked the entire quarter at reduced rate 10 5 0.3 • Q4 operational cost base expected to be
Slide 11: Decrease in free cash in Q3 2020
Decrease in free cash in Q3 2020 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 5.5 million to USD 4.3 million • Trade receivables decreased by USD 0.2 million to USD 6.3 million • Continued payment delays under the completed Pemex contract • Adjusted EBITD
Slide 12: Summary
awemegs Spot the difference.
Slide 13: Summary
Summary • Cost reduction program on schedule and on target • The prediction strength of the CSEM method further documented with the Mist well • Significant multi-client data coverage in the Hoop area of the Barents Sea (proposed included in Norway's 25th licensing round) EMGS well predictions on Lin
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