Skip to main content Q4 2014 EARNINGS CALL – Polarcus Investor Presentation | Shale Experts
Loading...
Database
Slide Database

Q4 2014 EARNINGS CALL – Polarcus

Polarcus · Feb 10, 2015 · 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. Q4 2014 EARNINGS CALL – Polarcus – slide 1
    Polarcus Limited Fourth Quarter and Preliminary Full Year 2014 10 February 2015 Rod Starr, CEO Tom Henrik Sundby, CFO Duncan Eley, COO 1
  2. Q4 2014 EARNINGS CALL – Polarcus – slide 2
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 2015 Agenda 3
  3. Q4 2014 EARNINGS CALL – Polarcus – slide 3
    A challenging market Global market landscape Rapid decline in oil price to lowest level since 2009 Pressure on margins across the whole E&P industry Exploration spend down as oil companies drive cost savings Polarcus response…
  4. Q4 2014 EARNINGS CALL – Polarcus – slide 4
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 2015 Agenda 5
  5. Q4 2014 EARNINGS CALL – Polarcus – slide 5
    Key financials : P&L (In millions of USD) Q4 Q4 FY FY Revenue down 25% year-on-year 2014 2013 2014 2013 Lower utilization Lower day rates Revenues 93.3 123.3 466.7 532.2 Cost of sales down 6% year-on-year Cost of sales (61.7)…
  6. Q4 2014 EARNINGS CALL – Polarcus – slide 6
    Key financials : Balance Sheet & Cash Flow (In millions of USD) Q4 Q4 FY FY Cash flow from operations in Q4 2014 2013 2014 2013 affected by increased working capital Total assets 1,245.8 1,314.7 1,245.8 1,314.7 Capital discipline…
  7. Q4 2014 EARNINGS CALL – Polarcus – slide 7
    Oil price decline impedes Q4 utilization 100% 2% 2% 1% 1% 2% 6% 4% 5% 7% 3% 5% 10% 13% 14% 90% 19% 2% 11% 14% 12% 16% Low utilization driving revenue decline 80% 13% 13% 10% 19% 18% 6% Standby time incurred between surveys 16%…
  8. Q4 2014 EARNINGS CALL – Polarcus – slide 8
    Increased headroom on DSR covenant LTM EBITDA Debt service ratio (DSR) covenant Required EBITDA 1.60x from Q4 2014 Required EBITDA from operations 198 197 1.75x from Q2 2015 183 2.00x from Q4 2015 192 187 157 172 USD 35…
  9. Q4 2014 EARNINGS CALL – Polarcus – slide 9
    Addressing the capital structure Debt maturity profile Q4 2014 Transactions in Q4 2014: Bank debt Sale leaseback USD 125m CB USD 95m bond Remaining amount of NOK 230m bond NOK 230m bond NOK 350m bond Nadia upgrade repaid on…
  10. Q4 2014 EARNINGS CALL – Polarcus – slide 10
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 2015 Agenda 11
  11. Q4 2014 EARNINGS CALL – Polarcus – slide 11
    Industry leading assets Youngest and most uniform 3D fleet with unique environmental capabilities A-Class 12 - 14 streamers Industrys highest ICE class N-Class Polarcus Naila upgraded in H1 14 12 streamers Equivalent capabilities…
  12. Q4 2014 EARNINGS CALL – Polarcus – slide 12
    Clients recognizing outstanding fleet performance Strong operational performance across Vessel locations 05 February 15 the fleet in 2014 fleet technical downtime: 2.2% Polarcus Adira Polarcus Nadia Large footprint exploration…
  13. Q4 2014 EARNINGS CALL – Polarcus – slide 13
    Optimizing oil company exploration New service line: fast-track advanced broadband processing. Launched Q4 2014 Managed and staffed by Polarcus geophysicists, powered by DUGs advanced processing software Delivering fully…
  14. Q4 2014 EARNINGS CALL – Polarcus – slide 14
    Environmental differentiator delivering results Baffin Bay, West Greenland. 2012 Projects where Polarcus Explore Green has been part of evaluation success The Twelve Apostles, Australia. 2014 Increasing demand for…
  15. Q4 2014 EARNINGS CALL – Polarcus – slide 15
    Disciplined approach to multi-client Multi-Client library assets at end Q4 Solid year-end sales from UK 28th Round New Multi-Client Projects (First Tranche) awards Impairments taken in Q4, driven by two 4m projects in legacy…
  16. Q4 2014 EARNINGS CALL – Polarcus – slide 16
    Cost management plan delivering results Focus area Tactics Saving Streamlined support structure Human capital cost Adjustment to compensation & benefits 17m Insourcing of onboard processing geophysicists Operating cost Field…
  17. Q4 2014 EARNINGS CALL – Polarcus – slide 17
    Industry tendering activity Received contract tenders in USD million (As of end Jan) 450 Millions Oil company response to lower oil 400 price drives slowdown in tenders 350 300 Tenders continue to be competitively 250…
  18. Q4 2014 EARNINGS CALL – Polarcus – slide 18
    Market hotspots 2015 Project activity and new opportunities focused predominantly on Asia Pacific and the Americas Canada: Newfoundland GoM: Myanmar US and Mexico Large block awards India ONGC Malaysia Caribbean / Central…
  19. Q4 2014 EARNINGS CALL – Polarcus – slide 19
    Market discipline reducing 3D fleet capacity 700 Available fleet in 2015 smaller 600 than 2014 500 Towed Streamers 3D Stacked vessels expected not to 400 return until market improves 300 Seismic sector 3D new build…
  20. Q4 2014 EARNINGS CALL – Polarcus – slide 20
    Good visibility entering 2015 Q1: 90% Q2: 45% Q3: 55% Q4: 25% 100% 90% Backlog USD 280m 80% Fleet 55% booked for 2015 70% 60% 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bareboat Booked…
  21. Q4 2014 EARNINGS CALL – Polarcus – slide 21
    Agenda 1 Highlights 2 Financials 3 Operations & Market update 4 2015 Agenda 22
  22. Q4 2014 EARNINGS CALL – Polarcus – slide 22
    The 2015 Agenda Revenue Generation Regionalize sales resources. Penetrate new markets Cost Management Execute & expand cost reduction plans Balance Sheet Management Manage debt. Enhance stakeholder value Positioning for…
  23. Q4 2014 EARNINGS CALL – Polarcus – slide 23
    Appendices 24
  24. Q4 2014 EARNINGS CALL – Polarcus – slide 24
    Polarcus in brief Polarcus Limited Ticker Oslo stock exchange PLCS Fleet of 7 high-end 3D seismic vessels 6 vessels operating globally in Contract and Multi-Client markets Shares issued, million 669,8 1 vessel on 5 year bareboat…
  25. Q4 2014 EARNINGS CALL – Polarcus – slide 25
    Income statement Quarter ended Year ended (In thousands of USD) 31-Dec-14 31-Dec-13 31-Dec-14 31-Dec-13 Revenues Contract revenue 72,337 111,155 419,185 496,422 Multi-client revenue 21,075 10,634 44,535 33,748 Other income (65) 1,547…
  26. Q4 2014 EARNINGS CALL – Polarcus – slide 26
    Balance Sheet (In thousands of USD) 31-Dec-14 31-Dec-13 ASSETS Non-current Assets Property, plant and equipment 927,815 972,802 Multi-client project library 88,731 88,704 Investment in joint ventures 2,317 2,483 Intangible assets 31,969…
  27. Q4 2014 EARNINGS CALL – Polarcus – slide 27
    Cash flow Quarter ended Year ended (In thousands of USD) 31-Dec-14 31-Dec-13 31-Dec-14 31-Dec-13 Cash flows from operating activities Profit/(loss) for the period (73,245) 7,401 (71,958) 43,466 Adjustment for: Depreciation and…
  28. Q4 2014 EARNINGS CALL – Polarcus – slide 28
    Key financials : Historical perspective Revenues EBITDA Margin 160 60 56.6 50% 140.4 50.4 140 123.1 50 40% 120 93.3 40 100 30% 80 30 23.7 60 20% 20 40 10 10% 20 - - 0% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14…
  29. Q4 2014 EARNINGS CALL – Polarcus – slide 29
    Debt overview as of 31 December 2014 Balance Debt Security Size Tenure Maturity Interest % 31 Dec 2014 Unsecured bond Unsecured NOK 350m NOK 350m 5 years Jul-19 7.73% Unsecured bond Unsecured USD 95m USD 86m 5 years Jun-18 8.00%…
  30. Q4 2014 EARNINGS CALL – Polarcus – slide 30
    The Polarcus share Top 20 Shareholders (as per end January 2015) Shareholder Share % OEP POLARCUS HOLDING 142,366,033 21.25 Listed on the Oslo Stock DNB NOR BANK ASA EGE ZICKERMAN HOLDING LT 51,372,548 49,862,476 7.67 7.44…
  31. Q4 2014 EARNINGS CALL – Polarcus – slide 31
    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…
  32. Q4 2014 EARNINGS CALL – Polarcus – slide 32
    Environmental leadership Polarcus has the only vessels in the world with DNV- GL Triple-E Level 1 rating The Triple-E Environmental & Energy Efficiency rating initiative: Applicable for all ships A tool for environmental…
  33. Q4 2014 EARNINGS CALL – Polarcus – slide 33
    Polarcus towing configurations optimally positioned Towing configurations are primarily defined by geology 95% of the global fleet towing 12 streamers or less Snapshot of current industry towing configurations (company averages)…
  34. Q4 2014 EARNINGS CALL – Polarcus – slide 34
    35

From the store

Browse maps, data & reports in the Shale Experts store