24 slides from Electromagnetic Geoservices Asa's earnings presentation, May 8, 2014
Slide 1: Electromagnetic Geoservices ASA First Quarter 2014 Results
ELECTROMAGNETIC GEOSERVICES ASA FIRST QUARTER 2014 RESULTS CEO, Roar Bekker CFO, Svein Knudsen 8 May 2014
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: Highlights First Quarter 2014
HIGHLIGHTS FIRST QUARTER 2014 Operational highlights • Two vessels operating for Pemex • Contract in Morocco for new customer • North Energy strategic agreement – Barents Sea multi-client library sale – Two contracts in the North Sea • Commenced fully funded multi-client campaign US Gulf of Mexico F
Slide 4: Financial Overview
FINANCIAL OVERVIEW mwemgs
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Key figures Q1 Revenues and revenues/costs per vessel month (USD Million) • Revenues of USD 61.3 million 60.00 8.0 50.00 6.0 • EBITDA of USD 20.4 million 40.00 30.00 4.0 • Net income of USD 8.2 million 20.00 2.0 10.00 Multi-client Q1 0.00 0.0 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 • Sale
Slide 6: Vessel Utilisation
VESSEL UTILISATION • Fleet utilisation at 66% 100 - Contract: 56% 90 - Multi-client: 10% 80 • BOA Thalassa (27%) - Completed contract in Australia 70 - Commenced contract in Morocco 60 • BOA Galatea (91%) 50 - Operating for Pemex 40 • Atlantic Guardian (83%) - Operating for Pemex until 22 March 30 -
Slide 7: Capital Structure
CAPITAL STRUCTURE Balance sheet as at 31.03.14 (USD million) Cash and working capital 250 • Cash at USD 48.1 million, down from USD 56.5 million at 31 December 200 • Trade receivables increased by USD 61.3 million USD 10.2 million to USD 41.8 million 150 • Other receivables increased by USD 11.8 mil
Slide 8: Operational Overview
OPERATIONAL OVERVIEW mwemgs
Slide 9: Strategic Agreement with North Energy
STRATEGIC AGREEMENT WITH NORTH ENERGY Multi-client agreement NOK 100 million (USD 16.1 million) • Sale of Barents Sea EM data library – payment in convertible bond – Booked value of conversion right of USD 2.5 million at 31 March – Financial gain of USD 1.6 million booked in Q1 – If fully converted,
Slide 10: Mexico Update
MEXICO UPDATE Status on Pemex contract • Value of USD 100 million • Est. USD 36 million in backlog at 31 March • Possible extensions of 2 x USD 25 million • Pursuing new opportunities for shallow water and structural imaging Opening of the Mexican continental shelf • CNH to manage licensing rounds •
Slide 11: Multi-Client Project in the US Gulf of Mexico
MULTI-CLIENT PROJECT IN THE US GULF OF MEXICO Daybreak project • EMGS’ first major MC project in the US • Extention of the Perdido trend • First phase of 80 blocks in 2014 – Strong industry funding – proves interest – Access to 2D seismic from TGS – Lease sale Fall 2014 • Deliveries include both CSE
Slide 12: East Canada Multi-Client Program
EAST CANADA MULTI-CLIENT PROGRAM • Expect to launch a 13,500 km2 multi-year, multi-client campaign in July 2014 • 4 months, ~4,000 km2 in 2014 • Currently soliciting additional partners for the program • Large virgin territories • Competitive advantage to subscribers exploring for the next high impa
Slide 13: EMGS Barents Sea Program
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Slide 14: Exciting Opportunities in Uruguay
EXCITING OPPORTUNITIES IN URUGUAY • New agreement with ANCAP - the regulating authority for oil and gas exploration • Licensing of EM count as working units • Strengthens potential for use of EM over both licensed and open acerage • New bid round in 2015 14
Slide 15: Vessel Schedule
VESSEL SCHEDULE Expected vessel schedule as of 7 May 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec BOA Thalassa Au Morocco NO Norway/ Greenland/ Canada West Africa BOA Galatea Mexico Mexico Mexico Atlantic Guardian Mexico NE Norway Norway EM Leader US GoM Eq
Slide 16: Market Update
MARKET UPDATE Order book (USD Million) Contract opportunities • Contract negotiations in Norway, Brazil, Angola, 140 India and Southeast Asia • Opportunity in Uruguay strengthened 120 • Targeting to close 1-2 major contracts in 2014 • Continued focus on large NOC contracts 100 • New energy reform in
Slide 17: Summary and Outlook
SUMMARY AND OUTLOOK Best quarterly revenue so far • Two vessels working for Pemex • Contracts in Australia, Morocco and Norway • Strategic agreement with North Energy • Strong support for multi-client investment US GoM • Important partner agreements with regulating authorities Outlook • Q2 expected
Slide 18: Q&A
O&A mwemgs
Slide 19: Appendix
APPENDIX mwemgs
Slide 20: Vessel Charters and Yard Stays
VESSEL CHARTERS AND YARD STAYS BOA Thalassa BOA Galatea Atlantic Guardian EM Leader EM Express Firm Charter December 2015 July 2015 1 March 2016 Charter until 8 June Standby in Bergen 2014 at no cost to EMGS. Options 1 x 1 year 2 x 1 year 3 x 1 year Optional 1-, 3-, 6- or Optional 3-, 6- or 12-month
Slide 21: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT USD million QUARTER ENDING YEAR ENDING 31.03.2014 31.03.2013 31.12.2013 31.12.2012 Contract sales 46.4 20.1 111.3 176.1 Multi-client sales 14.9 11.6 33.3 24.7 Total revenues 61.3 31.7 144.6 200.8 Charter hire, fuel and crew expenses 20.6 10.3 51.2 68.8 Employee expenses
Slide 22: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION USD million QUARTER ENDING 31.03.2014 31.03.2013 ASSETS 14.4 14.2 Goodwill 1.9 - Deferred tax asset 28.0 19.8 Multi-client library 2.9 4.6 Intangible assets 24.3 29.0 Property, plant and equipment 20.9 14.9 Assets under construction 4.0 - Total non-curren
Slide 23: Consolidated Statement of Cash Flow
CONSOLIDATED STATEMENT OF CASH FLOW USD million PERIOD ENDING 31.03.2014 31.03.2013 Net cash flow from operating activities (0.7) 15.7 Net cash flow from investing activities (9.7) (13.3) Net cash flow from financial activities 2.2 (1.4) Net increase in cash (8.2) 1.0 23
Slide 24: Largest Shareholders (as of 6 May)
LARGEST SHAREHOLDERS (AS OF 6 MAY) SHAREHOLDER SHARES HOLDING 1 MORGAN STANLEY & CO S/A MSCO CLIENT EQUI 18 033 336 9.03 % 2 SKAGEN GLOBAL 10 124 112 5.07 % 3 FIDELITY FUNDS 8 853 307 4.43 % 4 ODIN OFFSHORE 8 473 631 4.24 % 5 VERDIPAPIRFONDET DNB 7 545 383 3.78 % 6 CLEARSTREAM BANKING 6 168 757 3.09