ABG Sundal Collier Oil Service Conference Jon Erik Reinhardsen, President & CEO London, February 27, 2014
Cautionary Statement This presentation contains forward looking information Forward looking information is based on management assumptions and analyses Actual experience may differ, and those differences may be material Forward…
Leading Marine Geophysical Company Imaging & Marine Contract MultiClient Operations Engineering Marine market Diverse Productivity Technology leadership MultiClient library leadership differentiation 45% of 2013 Revenues 45% of…
2008 2015 First Phase of the Industrial Approach: Performance Through the Cycle - Getting it Right 3D fleet renewal and growth Average vessel age reduced from 16.2 to 9.2 years Average streamer per vessel increased from 8.5 to 12.9…
2016 and Beyond: Becoming Fully Industrialized Financial focus on profit, free cash flow and ROCE - not vessel market share growth Leveraging GeoStreamer equipped fleet and increased productivity differentiation Continued…
Investing in a Growth Case 4.0 EPS gaining momentum 3.5 EPS growth in focus going 3.0 forward 2.5 EPS 2.0 Good potential for further growth 1.5 in profitability from current levels 1.0 0.5 Dividend growth will be a…
Ramform Titan-class Delivers Attractive Returns PGS has historically strong returns on capital employed over the cycle Targeting average returns of 5% in excess of weighted average cost of capital (WACC) over the cycle WACC…
Contributes to Increased ROCE: PGS Fleet Provides Downside Protection in a Weaker Market Relative cash cost efficiency per streamer per day PGS fleet is positioned to generate the industrys best margins Source: The cash cost curve…
Contributes to Increased ROCE: MultiClient Stabilizes Earnings Through the Cycle 900 800 Strong sales progress for all 700 vintages 600 Moderate net book values (NBV) for surveys completed 2008- USD Millions 500 2013…
Contributes to Increased ROCE: The GeoStreamer Technology Platform Increases Margin Differentiation Shallow hazard Improved depth surveys imaging More reliable SWIM: GeoStreamer GS: GeoStreamer Full Waveform Offers the full…
Significant Free Cash Flow Potential 1000 Cash flow from operations covers ECF facility and net MultiClient investments, change in cash maintenance CAPEX, interest & NB CAPEX financing/debt service, dividends and a significant…
New Cost and Quality Initiatives Implemented 30 35 15 1200 90 100 Significant cost reductions 1000 achieved for 2012 and 2013 800 USD million Further cost reductions 600 initiated with target USD 30 million run rate by…
Strong Order Book 800 700 Order book of USD 669 600 million by the end of Q4 2013 500 USD million 400 Vessel booking* 100% booked for Q1 2014 300 95% booked for Q2 2014 70% booked for Q3 2014 200 20% booked for Q4…
Bidding Activity 3 500 3 000 Increase in All Sales Leads 2 500 Expected to impact the Active Tenders positively USD million 2 000 Industry order book duration 1 500 significantly increased 1 000 Survey size continues…
Global Supply and Demand Trends 600 Total 3D volume in '000 of sq. km 500 Growth in sq.km. flattened out from 400 2012 to 2013 300 From 2006 to end 2013 demand for 200 seismic grew by approximately 100 120% measured in…
PGS Strategic Ambition To Care For our employees For the environment and society at large For our customers success To Deliver Productivity Leadership Ramform platform + GeoStreamer Reducing project turnaround time To Develop…
Market Outlook Sustainable high oil price Deep water attractive for E&Ps Playing to PGS strengths Customer focus on preserving dividend capacity Pricing for booked 2014 work is unchanged from average 2013 level, with the…
In Conclusion: A Well Positioned Focused Marine Seismic Company Improving productivity & scale Building four new Ramform Titan-class vessels, of which two are delivered Strong 3D MultiClient library returns GeoStreamer delivers…
The PGS Fleet: Delivers Productivity Leadership Ramforms Other vessels Ramform fleet is Titan-class improving further Ramform Titan Ramform Atlas 2 Titan Class for 2015 delivery PGS Apollo with 4 new Titan- class vessels…
Main Yard Stays Next 6 Months Vessel When Expected Type of Yard Stay Duration Ramform March 2014 Approximately Upgrade to Sovereign 10 days GeoStreamers Ramform April 2014 Approximately Renewal class Vanguard 20 days Ramform…
Attractive Debt Structure Long term Credit Lines and Interest Nominal Total Financial Covenants Bearing Debt Amount at Credit Line December 31, 2013 USD 470.5 million Term Loan (TLB), Libor + USD 470.5 None, but incurrence 175 basis…
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