Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2009 Earnings Presentation
15 slides from Electromagnetic Geoservices Asa's earnings presentation, May 14, 2009
Slide 1: EMGS ASA First Quarter Presentation 2009
EMGS ASA FIRST QUARTER PRESENTATION 2009 Acting CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 14 May 2009 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 actu
Slide 2: Overview
OVERVIEW Q1 09 financial results - Revenues: USD 5.8 million - EBITDA loss: USD 17.6 million Strategic review initiated Global frame agreement with Shell Substantial contracts awarded by supermajors Uplift revenues in excess of USD 10 million from the Barents Sea multi-client campaign Strategic alli
Slide 3: Financial Highlights and Financing
FINANCIAL HIGHLIGHTS USD million Q1 09 financial results - Revenues: USD 5.8 million 35 - EBITDA loss: USD 17.6 million 30 Vessel utilisation at 46% - Vessels in operation: BOA Thalassa, 25 Siem Mollie and Atlantic Guardian 20 Operating expenses reduced to 15 USD 23.4 million 10 Subsequent events wi
Slide 4: Operations: Global Frame Agreement with Shell
OPERATIONS GLOBAL FRAME AGREEMENT WITH SHELL One-year deal with optional extensions for two additional years Shell is one of the most experienced users of EM technology Underlines Shell’s confidence in EM technology Technology adoption Commercial adoption First 3D EM survey in Senegal - Contract wor
Slide 5: Barents Sea Multi-Client Campaign; Gulf of Mexico Potential
BARENTS SEA MULTI-CLIENT CAMPAIGN EMGS’s data library covers all the Barents Sea acreage in the 20th Licensing Round Estimated uplift revenues in excess of USD 10 million More than 80% of our data library in the Barents Sea has become licensed acreage Remaining potential for additional late sales to
Slide 6: Strategy: Status Strategic Review
STRATEGY STATUS STRATEGIC REVIEW Goldman Sachs appointed in January by EMGS and Warburg Pincus Review strategic options available to EMGS in the future commercialisation of its business EMGS has now entered into strategic industry alliance with Fugro Process ongoing Technology Commercial Full Large
Slide 7: Strategic Alliance with Fugro
STRATEGIC ALLIANCE WITH FUGRO Fugro is the world’s leading geotechnical, survey and geoscience company Extensive marine geosciences expertise and global presence EMGS’s technology complements Fugro’s EM airborne and ground EM offerings We are confident this alliance will enhance industry adoption of
Slide 8: Establishing Commercial Focus; Core Vessel Fleet
ESTABLISHING COMMERCIAL FOCUS Develop a more integrated and Stavanger, Norway Trondheim, Norway (Europe, Africa & EMGS Headquarters commercially oriented business at all levels Middle East Business Unit) Strengthen business units to enhance customer interaction Market driven product development and
Slide 9: Workforce Reduction
WORKFORCE REDUCTION Vessel fleet and organisation in line with current demand environment 61 employees affected by the workforce reduction - 29 temporary layoffs - 28 redundancies - 4 consultancy contracts terminated Expect reduction in operating expenses of approximately USD 8 - 10 million per year
Slide 10: Summary
SUMMARY Established significant change of direction Strategic industrial alliance From 2D to 3D Announced contracts year to date: USD 35 million Our strategy of concentrating resources on NOCs/Majors has yielded tangible results Reduced cost base INTEGRATED EM SYSTEM OUTLOOK
Slide 11: Outlook
OUTLOOK Commercial focus Fugro alliance will be a significant contribution towards enhancing industry adoption Opportunity pipeline remains at USD 200 - 300 million INTEGRATED EM SYSTEM Q&A
Slide 12: Consolidated Income Statement
APPENDIX CONSOLIDATED INCOME STATEMENT USD 1 000 Quarterly 01.01 – 31.12 Q1 2009 Q1 2008 2008 2007 Revenues 5 812 43 487 116 177 140 339 Charter hire, fuel and crew expenses 12 189 20 115 70 518 93 816 Employee expenses 7 849 10 230 40 451 32 930 Other operating expenses 3 409 6 336 26 572 25 685 EB
Slide 13: Condensed Cash Flow and Balance Sheet
CONDENSED STATEMENT OF CASH FLOW Quarter ended USD million 31 March 2009 2008 Net cash flow from operating activities (21.9) (10.8) Net cash flow from investing activities (1.0) (5.9) Net cash flow from financial activities 0.6 3.9 Net profit (loss) (24.7) (3.2) INTEGRATED EM SYSTEM CONDENSED BALANC
Slide 14: Capital Structure and Ownership
CAPITAL STRUCTURE Assets as of 31.03. Equity and liabilites as of 31.03. (in USD million) (in USD million) 200 200 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 2008 2009 2008 2009 Non-current assets Cash Current assets excl.cash Shareholders equity Liabilities Interest bearing
Slide 15: EMGS Experience and Presence; Services
EMGS EXPERIENCE AND PRESENCE INTEGRATED EM SYSTEM EMGS’S SERVICES Three Clearplay service offerings have been designed to support operators during the exploration phase INTEGRATED EM SYSTEM
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