Sed Energy Holdings Plc · OSL:ENH
Sed Energy — SeaBird Exploration — Q1 2024 Earnings Presentation
23 slides from Sed Energy's earnings presentation, May 14, 2024
Slide 1: SeaBird Exploration Q1 2024 presentation
SeaBird Exploration Q1 2024 presentation
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 / Presenters
Agenda / Presenters • Introduction • Key developments • Contract and outlook • Financial • Summary • Q&A Ståle Rodahl Finn Atle Hamre Sveinung Alvestad Executive Chairman CEO CFO 14.5.24 – Page 3
Slide 4: SeaBird Exploration Plc
SeaBird Exploration Plc • Only pure play OBN source company listed globally • Headquarter in Bergen • Listed in Oslo under ticker SBX NO Eagle Fulmar Equipment • Market Cap.: USD 35.4m Explorer Explorer • NIBD: USD 13.1m OBN Source OBN Source Can equip one • Positive market outlook 2D 2D and one OBN
Slide 5: Seabird Exploration at a glance
Seabird Exploration at a glance • Provides marine seismic acquisition services to E&P- and integrated seismic companies • Operates within the seismic source vessel market and 2D streamer market • Not active in the Data Processing- or Multi-Client market • Competitive advantages: – Young, state-of-th
Slide 6: Fleet overview
Fleet overview Eagle Explorer (2009) • Designed and built as a 12-streamer 3D vessel • Currently equipped for 2D streamer and source vessel operations • Completed 5-year special periodic survey (SPS) in Q4 2023 (next 2028) • Replacement value estimated to around USD 100m Fulmar Explorer (2009) • Hig
Slide 7: Key events Q1 2024
Key events Q1 2024 Operational Financial • Utilization of 80 % • Revenues of USD 10.3m (Q1/23: USD 9.9m) • LTI of NIL • EBITDA of USD 4.6m (USD 4.4m) • Net profit of USD 2.6m (USD 6.9m) Eagle Explorer – Completed 2D project in Malaysia late February, • Cash flow operating activities of USD 1.7m (USD
Slide 8: Contract overview and outlook
Contract overview and outlook 14.5.24 – Page 8
Slide 9: Contract coverage and utilisation
Contract coverage and utilisation Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 202 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 97% 99% 97% 96% 96% 99% 97% 100% 89% 92% 91% 87% 72% 58% 50% 50% EAGLE FULMAR Under contract Class / yard stay / transit Paid mob / de-mob
Slide 10: OBN
OBN • The OBN market have gained market share of the total seismic market over the last few years • Reasons for the increased adoption is oil companies focus infrastructure led exploration (ILX) and its superior image quality (further enhanced by AI) Source: TGS Q4 2023 presentation Source: Equinor
Slide 11: Source fleet overview
Source fleet overview • Current fleet of active source vessels consists of 16 vessels* 35 • The comparable fleet in 2018/2019 was 35 vessels. • Active fleet reduced by ~60% • Two (2) 3D streamer vessels changed hands in Q1 at an avg. price of approx. USD 43m each** 16 * This is the “free” fleet comp
Slide 12: Financials
Financials 14.5.24 – Page 12
Slide 13: Financial highlights
Financial highlights Q1 2024 Key figures • Revenues of USD 10.3m (Q1/23: USD 9.9m) All figures in USD '000 (except Quarters* Full year* • EBITDA of USD 4.6m (USD 4.4m) EPS and equity ratio) Q1 2024 Q1 2023 2023 2022 • Net profit of USD 2.6m (USD 6.9m) Revenues 10,333 9,906 34,635 20,164 EBITDA 4,648
Slide 14: Quarterly revenue (USDm)
Revenue Revenue • Q1 revenue of USD 10.3m reflected 12.0 40.0 strong production and utilisation on both vessels 10.3 9.9 35.0 10.0 9.7 • Economical utilisation was 80% 8.9 8.5 Quarterly revenue (USDm) 8.4 30.0 – Fulmar Explorer 100% LTM revenue (USDm) 8.0 – Eagle Explorer 60% 7.1 25.0 6.5 • Revenue
Slide 15: Quarterly EBITDA (USDm)
EBITDA Adjusted EBITDA* • Q1 EBITDA of USD 4.6m, up from USD 5.0 4.6 4.6 15.0 4.4m the same period last year 4.4 4.0 • Underlying EBITDA for the last twelve 10.0 months was USD 12.9m, up from a loss Quarterly EBITDA (USDm) 3.0 2.4 of 5.3m the same period last year LTM EBITDA (USDm) 2.0 2.0 1.7 5.0 •
Slide 16: Cash flow bridge
Cash flow bridge Quarterly cash flow (USDk) • Net cash flow for Q1 was USD 0.2m • Cash flow from operation of USD 1.7m was hampered by Working capital build 4,579 -2,850 of USD 2.9m – Cash as of end-April was USD 4.1m • Maintenance capex was USD 0.3m -316 -710 • Debt service cost was USD 1.2m -480 -
Slide 17: Net interest-bearing debt
Net interest-bearing debt NIBD* (USDm) • Net interest-bearing debt was USD 13.1m as of Q1 2024 30 – Bank financing: USD 12.8m – Equipment financing: USD 2.6m 25 24.0 – Cash: USD 2.4m 23.2 20 19.0 17.6 17.8 • Reduced NIBD by ~USD 11m (~45%) since peak 15.0 15.0 15.0 15 14.1 13.1 12.6 • The company is
Slide 18: Summary
Summary 14.5.24 – Page 18
Slide 19: Illustrative dividend capacity
Illustrative dividend capacity Current Fulmar contract + Eagle working: Both vessels at 2013 rate level 2D w/ 70% 2D w/ 90% OBN w/ 70% OBN w/ 90% Assumptions LTM and 100% utilization utilization utilization utilization utilization Vessel EBITDA 45 17 24 32 19 23 SG&A -4 -4 -4 -4 -4 -4 Company EBITDA
Slide 20: Capital Allocation
Capital Allocation Aim to distribute excess cash to shareholders on a quarterly basis without jeopardizing Seabirds sound financial position First dividend of NOK 0.25/share approved by EGM and will be paid in Q2 2024. Ex-date: 10 June 2024 Record date: 11 June 2024 Payment date: 24 June 2024 A prer
Slide 21: Strategy
Strategy • Strong operational performance • Strong market outlook. • Actively monitor value accretive opportunities. Key next 12 months: – New Eagle contract – Capitalize on several 2D opportunities • Fragmented industry in need of further consolidation • Focus on cash conversion and free cash flow
Slide 22: Q&A
Q&A 14.5.24 – Page 22
Slide 23: Adjustments to EBITDA
Adjustments to EBITDA 2021 2022 2023 2024 USDk Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Reported EBITDA -533 -1,420 284 -2,516 106 -1,172 -609 -401 4,376 4,567 2,018 -2,296 4,648 Green Minerals 194 247 269 524 468 268 59 Write down of receivables -2,800 2,800 Legal provisions 3,969 Adjusted EBITDA -33