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Q3 2013 EARNINGS CALL – Polarcus

Polarcus · Oct 31, 2013 · 34 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. Q3 2013 EARNINGS CALL – Polarcus – slide 1
    Polarcus Limited 31 October, 2013 Rolf Ronningen, CEO Tom Henrik Sundby, CFO 1
  2. Q3 2013 EARNINGS CALL – Polarcus – slide 2
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 Summary & Q&A 5 Appendices 3
  3. Q3 2013 EARNINGS CALL – Polarcus – slide 3
    Polarcus today Fleet of 7 uniform seismic vessels 6 vessels operate in seismic contract and multi-client market 1 vessel on 5 years bareboat charter at USD 25m per year Seismic management of 1 vessel Multi-Client library NBV…
  4. Q3 2013 EARNINGS CALL – Polarcus – slide 4
    Third quarter 2013 Solid operational performance High contract day rates achieved EBIT margin improved to 27% Low Multi-Client pre-funding due to ongoing delay of block awards in UK Backlog of USD 150m by end of October USD…
  5. Q3 2013 EARNINGS CALL – Polarcus – slide 5
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 Summary & Q&A 5 Appendices 6
  6. Q3 2013 EARNINGS CALL – Polarcus – slide 6
    Financial results Quarter ended Year ended (In millions of USD) 30-Sep-13 30-Sep-12 31-Dec-12 Low reimbursable revenue and Revenues 133.7 174.6 529.3 reduced fleet capacity Vessel operating expenses (69.4) (103.8) (312.7) EBITDA…
  7. Q3 2013 EARNINGS CALL – Polarcus – slide 7
    8 97 CLOSING CASH BALANCE 11 97 INTEREST PAYMENTS 108 12 35 LOAN REPAYMENTS 153 2 RESTRICTED CASH 153 11 MC INVESTMENTS 164 20 CAPEX 184 19 W ORKING CAPITAL Cash flow Q3 145 57…
  8. Q3 2013 EARNINGS CALL – Polarcus – slide 8
    9 97 CLOSING CASH BALANCE 49 97 INTEREST PAYMENTS 201 146 LOAN REPAYMENTS 254 93 NEW FINANCING 254 2 RESTRICTED CASH 256 40 MC INVESTMENTS 128 168 SALE OF ASSETS Cash flow YTD Q3…
  9. Q3 2013 EARNINGS CALL – Polarcus – slide 9
    Key financials historic development Revenues EBIT 200.00 50.00 30% 25% 150.00 40.00 20% 30.00 15% 100.00 10% 20.00 5% 50.00 10.00 0% -5% - - -10% Q4-11 Q4-10 Q1-11 Q2-11 Q3-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13…
  10. Q3 2013 EARNINGS CALL – Polarcus – slide 10
    Fleet Utilization 83% in Q3 - 13 100% 1% 2% 2% 1% 2% 2% 1% 3% 5% 3% 4% 6% 10% 7% 13% 7% 13% 14% 90% 13% 16% 18% 6% 19% 11% 25% 8% 80% 8% 3% 13% 13% 10% 70% 16% 30% 60% Standby Yard stay (including shakedown) 50% Transit 89%…
  11. Q3 2013 EARNINGS CALL – Polarcus – slide 11
    Debt maturity profile Bank debt Sale leaseback USD 125m CB USD 95m bond NOK 230m bond The Company repaid the USD 35m 2008/2013 Convertible bond end July 2013. Improved terms on sale lease- back from 12% to 10.8% 125 implied…
  12. Q3 2013 EARNINGS CALL – Polarcus – slide 12
    Covenant amendments from Jan 2014 Last twelve month debt service MUSD Reduced Debt Service ratio requirement (EBITDA/Cash 108 108 104 98 91 89 87 86 Interest + Cash repayments) to 2.25x in Q1 and Q2 2014 and to 43 44 2.5x in Q3…
  13. Q3 2013 EARNINGS CALL – Polarcus – slide 13
    Settlement of lawsuit Worldwide license for WesternGeco patents relating to steering marine seismic streamers and arrays License fee of USD 40m, payable in three equal installments Installments to be paid with cash from…
  14. Q3 2013 EARNINGS CALL – Polarcus – slide 14
    Polarcus share information Top 20 Shareholders (as per 21 October) Listed on the Oslo Stock Shareholder ZICKERMAN HOLDING LT Share 40,571,476 % 8.00 Exchange VARMA MUTUAL PENSION 23,648,025 4.66 ZICKERMAN GROUP LTD 23,178,081…
  15. Q3 2013 EARNINGS CALL – Polarcus – slide 15
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 Summary & Q&A 5 Appendices 16
  16. Q3 2013 EARNINGS CALL – Polarcus – slide 16
    Operational performance Q3 2013 End Oct Technical downtime < 4% Completion of operations in North West Europe and Sakhalin ahead of plan Polarcus Samur Polarcus Amani Polarcus Naila 40 days off hire due to thruster Polarcus…
  17. Q3 2013 EARNINGS CALL – Polarcus – slide 17
    Multi-client library in the making 10% MC vessel utilization in Q3 11.3m cash investment in Q3 and 40.2m YTD Q3 4,500 sq.km new project library added in second core area of UKCS Project library NBV at USD 85m 18
  18. Q3 2013 EARNINGS CALL – Polarcus – slide 18
    Multi-client portfolio well positioned for sales 74% of projects library processed and available for year-end sales 5m Sales triggers for Q4 revenue 56m 1. Data availability of West Africa projects 2. New Permian play in Barents…
  19. Q3 2013 EARNINGS CALL – Polarcus – slide 19
    Global 3D Seismic Fleet Capacity No. Vessels Company Vessel Streamer cap. Estimated seismic fleet growth 2013 2015 net 2% YOY assuming vessel retirement 1 PGS Ramform Titan 16 1 Dolphin Sanco Swift 12 2013 1 PGS Ramform Atlas…
  20. Q3 2013 EARNINGS CALL – Polarcus – slide 20
    Robust offshore seismic E&P demand Barclays Research expects global E&P upstream CAPEX to further increase to 2015 Capital Spending (USD Millions) Marine seismic representing 3% of Global Offshore E&P spend Robust E&P growth…
  21. Q3 2013 EARNINGS CALL – Polarcus – slide 21
    Global seismic outlook North America: Increased focus NW Europe: Good MC and Russian Arctic: Rosneft & from Supermajors and new WAZ contract outlook for 2014 Gazprom awarded extensive surveys in Nova Scotia acreage Central America:…
  22. Q3 2013 EARNINGS CALL – Polarcus – slide 22
    Polarcus contract revenue split 2013 True global footprint Diversified revenue portfolio 80m Repeat business awards from the major OilCos 80m 141m 84m 23
  23. Q3 2013 EARNINGS CALL – Polarcus – slide 23
    Backlog Received contract tenders in USD million (As of end Oct) USD 150 million contract backlog* end 400 Millions October 350 High competition for Q4 2013 300 Improved tender activity for Q1 2014 250 Booked capacity…
  24. Q3 2013 EARNINGS CALL – Polarcus – slide 24
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 Summary & Q&A 5 Appendices 25
  25. Q3 2013 EARNINGS CALL – Polarcus – slide 25
    RIGHTSIZE, RIGHTDESIGN, RIGHTPLAN Strong operational performance Improved margins Focus on generating cash 26
  26. Q3 2013 EARNINGS CALL – Polarcus – slide 26
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 Summary & Q&A 5 Appendices 27
  27. Q3 2013 EARNINGS CALL – Polarcus – slide 27
    Key financials Quarter ended Nine months ended Year ended (In millions of USD) 30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12 31-Dec-12 Revenues 133.7 174.6 408.9 388.9 529.3 Vessel operating expenses (69.4) (103.8) (224.8) (237.2) (312.7)…
  28. Q3 2013 EARNINGS CALL – Polarcus – slide 28
    Income statement Quarter ended Nine months ended Year ended (In thousands of USD) 30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12 31-Dec-12 Revenues Contract revenue 129,746 170,232 385,266 374,528 495,338 Multi-client revenue 3,305 3,943…
  29. Q3 2013 EARNINGS CALL – Polarcus – slide 29
    Cash flow Quarter ended Quarter ended Year ended (In thousands of USD) 30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12 31-Dec-12 Cash flows from operating activities Profit/(loss) for the period 19,926 21,074 36,065 13,083 9,829 Adjustment for:…
  30. Q3 2013 EARNINGS CALL – Polarcus – slide 30
    Debt overview Balance Debt Security Size Tenure Maturity Interest % 30 Sep 2013 Unsecured bond Unsecured NOK 230m NOK 230m 3 years Nov-14 14.00% Unsecured bond Unsecured USD 95m USD 95m 5 years Jun-18 8.00% Senior secured…
  31. Q3 2013 EARNINGS CALL – Polarcus – slide 31
    RIGHTSIZE RIGHTDESIGN RIGHTPLAN Polarcus Nadia Polarcus Naila Polarcus Asima Polarcus Alima Type 3D Vessel Type 3D Vessel Type 3D Vessel Type 3D Vessel Design Ulstein SX124 Design Ulstein SX124 Design Ulstein SX134 Design Ulstein…
  32. Q3 2013 EARNINGS CALL – Polarcus – slide 32
    Awards through RIGHTDESIGN DYNPOS-AUTR Systems redundancy CLEAN DESIGN IMO Green Passport with DP2 High specification Triple E exhaust catalysts Environmental & Energy Efficiency Sentinel solid streamers ULSTEIN X-BOW…
  33. Q3 2013 EARNINGS CALL – Polarcus – slide 33
    Pioneering environmental leadership DNVs Triple-E is a voluntary environmental performance rating scheme for ships, independent of class, age and flag 1 Key measures of Energy & Environmental Efficiency : 2 Leading Environmental…
  34. Q3 2013 EARNINGS CALL – Polarcus – slide 34
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