Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — Q1 2018 Earnings Presentation
21 slides from Electromagnetic Geoservices Asa's earnings presentation, May 3, 2018
Slide 1: First Quarter 2018 Results
FIRST QUARTER 2018 RESULTS. Oslo, 3 May 2018 CEO Christiaan Vermeijden, CFO Hege A. Veiseth
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: Comprehensive refinancing approved, seasonally weak quarter
Comprehensive refinancing approved, seasonally weak quarter Operations • Completed multi-client surveys in Indonesia • Expanded the library in the Barents Sea Financials • Revenues of USD 4.3 million • EBITDA of negative USD 6.4 million • Rights issue of up to USD 12.5 million approved • Fully under
Slide 4: Financial review
Financial review Spot the difference.
Slide 5: First quarter performance
All 2017 financial figures in this presentation are restated applying IFRS 15 First quarter performance Key financial metrics Quarterly development (USD million) • Revenues 12 Revenues 10 • USD 4.3 million 8 11 11 6 • New revenue recognition standard 4 8 implemented 2 4 4 0 • EBITDA Q1'17 Q2'17 Q3'1
Slide 6: Operational costs
Operational costs Quarterly operational cost base* development (USD million) Comments 15 • Operational costs base in Q1 18 of USD 12.4 million 1.7 - Comparable to Q1 last year 10 1.3 • Cost control 5.1 5 - Cost control focus continues - Target the 2018 cost base around USD 50 million, 4.3 subject to
Slide 7: Decrease in free cash in Q1
Decrease in free cash in Q1 Quarterly free cash development (USD million) Comments • Net decrease in free cash of USD 4.7 million to USD 11.8 million • Trade receivables decreased by USD 7.6 million to USD 3.5 million • USD 0.6 million in interest-payment on interest bearing debt of USD 33.5 million
Slide 8: Multi-client book value of USD 14.6 million
Multi-client book value of USD 14.6 million Multi-client library – NBV (USD million) Comments 25 • Reduction of book value from USD 17.3 million previous quarter to USD 16.3 million 20 15 • Investments of USD 1.7 million • Indonesia and Barents Sea 10 5 • Amortisation of USD 2.7 million - Straight-l
Slide 9: Comprehensive refinancing
Comprehensive refinancing Rights issue Convertible bond issue • Gross proceeds of up to USD 12.5 million • Fully underwritten convertible bond with nominal • USD 10 million underwritten amount of USD 32.5 million • Subscription price of NOK 2.45 per share • Conversion price of USD 0.42677 • Up to 39
Slide 10: Operations, Market and Outlook
Operations, Market and Outlook
Slide 11: Hardware, Imaging & Interpretation improvements
Hardware, Imaging & Interpretation improvements Exploration Solution Rock physics Value modeling 3D sensitivity scanning proposition Well log tool Prospect evaluation 3D Gauss-Newton 3D TTI anisotropy Up-down separation Updated regularization Deep More powerful BFGS Coarse CSEM + model update JIP se
Slide 12: Are there more CSEM anomalies hiding here?
Are there more CSEM anomalies hiding here?
Slide 13: Grane: Revisiting 2003 data
Grane: Revisiting 2003 data 2003 MVO Plot Interpretation Method 2018 Imaging and well correlation Represents CSEM Data and the «bump» between the purple lines is the EM Inverted 2003 CSEM data. High temperature color represent CSEM anomalies matching Grane field anomaly over the Grane field outline
Slide 14: Applying CSEM in the North Sea
Applying CSEM in the North Sea 4C seismic (Diskos) 4C seismic (Diskos), with CSEM ) OBC seismic shows the shale-sand contrast and the Heimdal sands can be The same OBC seismic section, now with CSEM data. Charge, seal and imaged. Traditional streamer seismic struggles to show the Heimdal volume pote
Slide 15: Operations and selection of current opportunities
Operations and selection of current opportunities Norway: • CSEM part of several work commitments following the APA awards • Upcoming event: 24th round awards and uplifts expected in Q2 2018 • DeepBlue providing the potential to open up new markets for CSEM. Surveys underway. Global: • MC and propri
Slide 16: Market update | Continued limited visibility
Market update | Continued limited visibility Comments Order backlog - limited earnings visibility • Strategic data acquisition programs in Norway will 8 keep the Atlantic Guardian busy through Q2 2018 7 • Prospects being developed outside of Norway to 6 keep the vessels utilized during Q3 and Q4 201
Slide 17: Comprehensive refinancing approved, seasonally weak quarter
Comprehensive refinancing approved, seasonally weak quarter Operations • Completed multi-client surveys in Indonesia • Expanded the library in the Barents Sea Financials • Revenues of USD 4.3 million • EBITDA of negative USD 6.4 million • Rights issue of up to USD 12.5 million approved • Fully under
Slide 18: Questions?
aw emegs Questions? Spot the difference.
Slide 19: Consolidated Income Statement
Consolidated Income Statement Q1 2018 Q1 2017 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Restated* Restated* Operating revenues Contract sales 114 701 2,583 Multi-client pre-funding 2,540 1,075 11,295 Multi-client late sales 963 2,386 19,132 Other revenue 679 0 886 Total revenues 4,296
Slide 20: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 March 2018 31 March 2017 31 December 2017 31 March 2018 31 March 2017 31 December 2017 Amounts i n USD 1 000 Unaudited Unaudited Unaudited Amounts i n USD 1 000 Unaudited Unaudited Unaudited Restated* Restated* Restated* Restated* EQUITY ASSETS Capital
Slide 21: Largest shareholders as of 2 May
Largest shareholders as of 2 May # Shareholder Shares Holding 1 SIEM INVESTMENTS INC. 21 869 450 23.92 2 PERESTROIKA AS 20 560 847 22.49 3 MORGAN STANLEY & CO. LLC 18 074 938 19.77 4 BÆKKELAGET HOLDING AS 3 010 000 3.29 5 SPORTSMAGASINET AS 2 575 001 2.82 6 ROSENFONN INVEST AS 1 500 000 1.64 7 NHO -
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