THIRD QUARTER 2014 RESULTS October 23, 2014 Oslo, Norway 1
Challenging Market Good Contract and Cash Flow Performance Q3 2014 performance: Solid marine contract EBIT margin of 27% Weak MultiClient sales due to lack of Triton pre-funding Strong cash flow from operations of USD 231…
Order Book 800 700 600 Order book of USD 466 million by end Q3 2014 500 USD million Vessel booking* 400 90% booked for Q4 2014 50% booked for Q1 2015 300 15% booked for Q2 2015 10% booked for Q3 2015 200…
Financials Unaudited Third Quarter 2014 Results
Condensed Consolidated Statement of Operations Summary Q3 Q3 Nine months Nine months USD million (except per share data) 2014 2013 % change 2014 2013 % change Revenues 394.2 365.6 8% 1 023.6 1 142.1 -10 % EBITDA* 181.7 216.0 -16 %…
MultiClient Revenues per Region Pre-funding and Late Sales Revenues Combined 250 Pre-funding revenues were 200 highest in Europe and North America 150 Good late sales from USD million Europe, Africa and North 100…
Vessel Utilization Seismic Streamer 3D Fleet Activity in Streamer Months 100 % 75% of active 3D capacity 90 % scheduled for contract work in Q4 80 % Steaming expected to 70 % account for approximately 60 % 15% of total vessel time…
Group Cost* Focus Delivers Results Cost increase from Q2 as 300 283 flagged in the Q2 presentation 272 268 271 270 270 265 266 250 240 252 241 Increase is primarily due to increase of expensed steaming cost, less capitalized…
Consolidated Statements of Cash Flows Summary Q3 Q3 Nine months Nine months USD million 2014 2013 2014 2013 Cash provided by operating activities 230.7 189.4 453.0 563.4 Investment in MultiClient library (70.4) (120.9) (286.3) (262.0)…
Balance Sheet Position - Key Numbers September 30 September 30 Full year USD million 2014 2013 2013 Total assets 3 685.5 3 511.2 3 544.3 MultiClient Library 769.8 520.7 576.9 Shareholders' equity 2 018.3 2 041.5 2 065.6 Cash and…
Attractive Debt Structure No Maturities Before 2018 Long term Credit Lines and Interest Nominal Total Financial Covenants Bearing Debt Amount as Credit Line of end September 30, 2014 USD 400.0 million Term Loan (TLB), Libor USD 398.0…
Operational Update and Market Comments Unaudited Third Quarter 2014 Results
Streamer Operations October 2014 Ramform Explorer (Barents Sea) Sanco Spirit 2D Atlantic Explorer 2D (Canada) Ramform Challenger (Steaming to Nigeria) Ramform Atlas (Trinidad & Tobago) PGS Apollo Ramform Titan Ramform…
Low Marine Contract Bidding Activity 3 500 Substantial value of All 3 000 Sales Leads, but delays in conversion to active 2 500 tenders West Africa and Asia Pacific, including Australia USD million 2 000 represents…
Global Supply and Demand Trends 600 From 2006 to end 2012 demand for seismic grew by approximately 120% Total 3D volume in '000 sq.km. 500 measured in sq.km. 400 Annual average growth rate of 12% 300 Growth in sq.km.…
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…
Productivity Leadership is Key for Differentiation Vessel Decommissioning Supportive for Supply/Demand Balance Relative cash cost efficiency per streamer per day PGS vessels Competitors vessels Temporary stacked Recently…
Strong Correlation in MultiClient Sales vs. Net Book Value 800 Sales 700 MultiClient business growing in 600 sales and profitability 500 USD million 400 300 Corresponding NBV growth 200 Varies with annual pre-funding 100…
Solid MultiClient Performance Excluding Triton 3.0 180 % No indication of declining trend 160 % of key MultiClient ratios when 2.46 2.45 2.49 Triton is excluded 2.34 140 % 155% 2.0 1.92 1.95 129 % 120 % Triton sales forecast…
Good MultiClient Sales Performance from All Vintages 1 000 Strong sales progress for all 900 vintages 800 Moderate net book values 700 (NBV) for surveys completed 2009-2014 600 USD million 500 Work In Progress (WIP)…
Response to a Softer Market Fleet Adjustment and CAPEX Reduction Sold Pacific Explorer and decommissioned Nordic Explorer Recurring quarterly cost saving of USD 10 million from Q4 2014 Atlantic Explorer will remain a 2D/source/EM…
Profit Improvement and Cost Initiatives Program Launched Initiatives Goal Status Converted Nordic Explorer to 2D General belt tightening USD 50 million Completed Profit December Yard-stay management: Cost- EBIT run rate year-end…
Dividend Capacity is a Priority 2.5 Solid dividend growth +39% Solid dividend growth since 2 Dividend per share in NOK dividend policy was introduced in 1.5 +50% 2011 1 Dividend capacity is a priority 0.5 0 With current…
Market Outlook Deteriorating market conditions, including a weakening of the oil price Cautious spending pattern among oil companies impacts bidding, pricing and utilization negatively The weak market is expected to continue…
2014 Guidance EBITDA is expected to be approximately USD 725 million MultiClient cash investments of approximately USD 350 million Pre-funding level of approximately 90% Capital expenditures of approximately USD 375 million…
In Conclusion: Robust Balance Sheet - Well Positioned for a Challenging Market Cost effective operations Improved productivity Solid balance sheet No debt maturities before 2018 Solid MultiClient sales performance Returning…
Thank you Questions
Appendix A Fleet of Purpose Built High-end Seismic Vessels Ramforms Other vessels Ramform Titan- class vessels Titan-class accretive to returns Ramform Titan Ramform Atlas 2 Titan Class for 2015 delivery PGS Apollo GeoStreamer…
Appendix Main Yard Stays Next 6 Months Vessel When Expected Duration Type of Yard Stay PGS September /October Approximately 24 Renewal class Apollo 2014 days Ramform November/December Approximately 35-40 Renewal class Explorer 2014…
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