Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q3 2012 Earnings Presentation
12 slides from Electromagnetic Geoservices Asa's earnings presentation, Nov 15, 2012
Slide 1: EMGS ASA – Third Quarter Presentation 2012
EMGS ASA – THIRD QUARTER PRESENTATION 2012 CEO, Roar Bekker CFO, Svein Knudsen Hotel Continental, 15 November 2012 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: Highlights
HIGHLIGHTS Financial results • Revenues of USD 43.2 million • EBITDA of USD 7.3 million (17%) Investing to expand the EM market • Salt and basalt proof of concept surveys • New acquisition technology Industry interest for EM growing steadily • High industry interest at SEG 2012 • PEMEX publicly endo
Slide 3: Financial Highlights; Maintaining Strong Balance Sheet
FINANCIAL HIGHLIGHTS Key figures Q3 Revenues and revenues/costs per vessel month (USD Million) 60,00 6,0 • Revenues of USD 43.2 million 7.5 50,00 5,0 • EBITDA of USD 7.3 million 40,00 4,0 • Multi-client investments of USD 3.2 million 30,00 3,0 20,00 2,0 • Adjusted EBITDA of USD 4.1 million 10,00 1,0
Slide 4: Barents Sea Data Library
BARENTS SEA DATA LIBRARY Extensive 3D EM coverage • Approximately 24,000 km2 • 79 blocks Key financial figures (as of 30 Sept) • Return on investment: 2.05 • MC sales Q3: USD 4.2 million • Book value: USD 8.4 million Revenues beyond Q3 • Late-sales so far in Q4: USD 4.8 million • Additional late-sal
Slide 5: Vessel Activity and Backlog
VESSEL ACTIVITY AND BACKLOG Vessel schedule as of 15 November 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June West West West BOA Thalassa PEMEX US Gulf of Mexico Ext. Africa Africa Africa BOA Galatea Petrobras Brazil Brazil Brazil Brazil N Barents Basalt Atlanti
Slide 6: Economic Evaluation with CSEM
ECONOMIC EVALUATION WITH CSEM • Addition of CSEM data reduces uncertainty Positive CSEM is likely to: Expected reserves [MMboe] • Increase average reserves • Increase probability of success CSEM positive Uncertainty CSEM negative is likely to: CSEM range • Decrease average reserves negative • Reduce
Slide 7: Shelf Xpress – Deeper EM Imaging on the Continental Shelf
Shelf Xpress – DEEPER EM IMAGING ON THE CONTINENTAL SHELF • Expanding the EM operating envelope on the continental shelf • Technology demonstration on Bøyla – North Sea • Increased CSEM data sensitivity • Six times source output • Broadband source signal – higher resolution • Increase depth of penet
Slide 8: Regional 3D EM Coverage – Reading Between the Lines
REGIONAL 3D EM COVERAGE – READING BETWEEN THE LINES 2D seismic 3D EM 3D seismic Havis Dry hole New lead Seismic data courtesy of Multiclient Geophysical DRILLING PREDICTIONS FROM MULTI-CLIENT 3D EM Norway • Barents Sea has established 3D EM as a key technology in frontier exploration • Successful ma
Slide 9: Market Update
MARKET UPDATE Order book as of 30 Sept 2012 (USD Million) Industry interest steadily increasing • Strong interest at SEG 180 • Gaining access at higher level in oil 160 companies 140 • Client base expanding • Driven by significantly increased access 120 to data examples and case studies 100 • Collab
Slide 10: Summary and Outlook
SUMMARY AND OUTLOOK Q3 • In isolation a disappointing quarter • Investing to expand the EM market through commercialisation of new technology and proof of concept projects • Sustaining strong balance sheet Outlook • Maintaining 2012 guidance • Near-term: Short contracts and limited visibility into Q
Slide 11: Consolidated Income Statement and Financial Position
CONSOLIDATED INCOME STATEMENT USD million QUARTER ENDING NINE MONTHS ENDING 30.09.2012 30.09.2011 30.09.2012 30.09.2011 Contract sales 39.0 45.5 141.5 107.6 Multi-client sales 4.2 - 14.3 7.0 Total revenues 43.2 45.5 155.8 114.6 Charter hire, fuel and crew expenses 17.9 18.6 56.1 45.9 Employee expens
Slide 12: Consolidated Statement of Cash Flow; Largest Shareholders
CONSOLIDATED STATEMENT OF CASH FLOW USD million NINE MONTHS ENDING 30.09.2012 30.09.2011 Net cash flow from operating activities 23.9 0.5 Net cash flow from investing activities (27.6) 1.0 Net cash flow from financial activities (2.7) 19.7 Net increase in cash (6.4) 21.2 LARGEST SHAREHOLDERS (AS OF
Electromagnetic Geoservices ASA (EMGS) — Q3 2012 Earnings Presentation on 6ix