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THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS

TGS · Mar 20, 2012 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 1
    TGS 2012 The Norwegian Society of Financial Analysts CEO Robert Hobbs, 20 March 2012
  2. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 2
    Forward-Looking Statements All statements in this presentation other than statements of historical fact, are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict…
  3. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 3
    TGS Value Proposition 3
  4. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 4
    Company Milestones 4
  5. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 5
    Attractive returns through the cycles Average EBIT margin above 40% Stable EBIT performance through the cycles Return on Capital Employed (ROCE)* ROCE consistently outperforming peers Surplus capital distributed to…
  6. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 6
    Well positioned in the seismic value chain Multi-client Services Geophysical Data Geological Data Imaging Services Reservoir 2D Seismic Digital well data Seismic processing Integrated Permanent Reservoir Monitoring 3D Seismic…
  7. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 7
    Geographic diversification Revenues 2005 - 2011 7
  8. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 8
    TGS value proposition Strong balance sheet provides flexibility Unique high-quality data in the right place at the right time Multi-client model allows customers to access data at a reduced cost. Vendor neutral philosophy allows…
  9. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 9
    Performance through the cycle TGS multi-client projects return 2-2.5 times cost. Demand for data drives TGS performance TGS best at top of the cycles, but multi- client model also provides protection at the bottom of the…
  10. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 10
    Market drivers and TGS positioning 10
  11. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 11
    Reserves replacement correlate to investment cycles World Liquid Fuel Supply Oil and gas reserves continue to decline More oil produced from existing reserves than we are discovering Political instability and closed markets…
  12. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 12
    Long-term oil supply more expensive to produce Oil and Gas Production and Breakeven Costs Source: IEA World Energy Outlook 2011 Source: IEA World Energy Outlook 2008 Brazil, Canada and Kazakhstan are the only non-OPEC…
  13. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 13
    Global E&P spending expectations According to Barclays 2012 E&P spending survey, global E&P expenditures will increase by 10% to 598 BUSD in 2012 Companies basing 2012 budgets on USD 87 (WTI) and USD 98 (Brent) per barrel Price…
  14. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 14
    License Round Activity and TGS Positioning Norway: 22nd Round nominations due in Northeast Greenland: January 2012 Opens 1 January 2012 22nd Round blocks announced Bids due December 2012 summer 2012 United Kingdom: UK 27th round…
  15. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 15
    Key drivers for continued seismic outperformance Geographic region Share of 2011 revenues Key drivers for future investments and growth EUR Recent discoveries in mature markets in North Sea triggers increased optimism and demand for…
  16. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 16
    Pre-salt discoveries from Brasil to West Africa Recent drilling success mirror deep water pre-salt success in Brazil TGS existing data helps plan future investment Increasing number of active clients Investment growth in…
  17. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 17
    Unconventional oil expected to grow rapidly Unconventional is a key element of future energy supply 45% to 50%* of North American liquids production expected to come from unconventional assets by the end of the decade Customer…
  18. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 18
    Highest ever backlog TGS enters 2012 with the highest backlog in company history providing increased visibility for revenue and investment Prefunding commitments on large 3D-surveys effective from January 2012 will provide…
  19. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 19
    Acquisition capacity secured EUR NSA AMEAP Vessel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Viking Vision NW Australia Geo Atlantic NW Australia. Geco Eagle Angola WG Waz Crew Gulf of Mexico Waz Ramform NW Europe 3D Polar…
  20. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 20
    Outlook 20
  21. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 21
    TGS strategy for further value creation Geophysical Data Geological Data Imaging Services Reservoir Continue proven multi-client Continue to aggressively Develop and apply Leverage global client strategy expand upon leading…
  22. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 22
    Strong balance sheet backing our strategy Other 140 210 Current liabilities Goodwill 86 Cash balance per 31.12.11 represents 142 Non-current USD 336 million, corresponding to NOK liabilities Cash 336 19 per share Receivables 252…
  23. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 23
    Proposed 2011 dividend of NOK 6 per share Strong commitment to return cash to shareholders Dividend 2009 - 2011 Healthy cash generation and strong cash balance Business model proven through the 2 cycles 2 6 Last 3 year average…
  24. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 24
    Summary Our Market Global demand for new oil and gas reserves will grow The oil that has been found was the easy oil new reserves will require new technology in new regions and new plays Our Position TGS is the dominant pure…
  25. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 25
    2012 Guidance Multi-client investments 315 365 MUSD Average pre-funding 50 60% Average multi-client amortization rate 41 47% Net revenues 700 760 MUSD Contract revenues approximately 5% of total revenues 25
  26. THE NORWEGIAN SOCIETY OF FINANCIAL ANALYSTS – TGS – slide 26
    Thank You www.tgsnopec.com 26

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