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PARETO OIL & OFFSHORE CONFERENCE – Polarcus

Polarcus · Sep 10, 2014 · 38 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. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 1
    Polarcus Limited Pareto Oil & Offshore Conference 10-11 September, 2014 Rolf Ronningen, CEO 1
  2. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 2
    Agenda 1 Our company 2 Our financials 3 Our business lines 4 Our market outlook 5 Key takeaways 3
  3. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 3
    Our company 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 507.2 1 vessel on 5 year…
  4. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 4
    Our strengths Youngest and most uniform fleet Full tow capabilities to meet market demand True Arctic capabilities and experience Environmental safeguards by design Competitive broadband offering - RightBAND Acknowledged high…
  5. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 5
    Key developments to date Market Confirmation of fleet capacity reductions Competitive market environment as clients focus on maintaining dividend payouts Arctic emerging as new growth market Polarcus Q3 utilization impacted by…
  6. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 6
    Agenda 1 Our company 2 Our financials 3 Our business lines 4 Our market outlook 5 Key takeaways 7
  7. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 7
    Key financials improved margins QoQ Revenues EBITDA Margin 200 70 50% 60 51 137.6 50 40% 150 130.5 50 114.3 43 40 30% 100 30 20% 50 20 10% 10 - - 0% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q2-12 Q3-12 Q4-12 Q1-13…
  8. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 8
    Maintaining profitability Despite challenging market conditions and yard stay 16.1 -16.2 14.9 10.2 1.8 -2.7 -3.9 Net profit H1-13 Revenue Operating Depreciation & Net FX Net Interest Net profit H1-14 expenses…
  9. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 9
    Positive cash flow generation H1 14 Operating +101m Investing -45m Financing -43m 11 18 12 15 80 18 25 10 93 81 Change in gross cash USD + 11m Opening Profit Cash WC Naila upgrade CAPEX Multi-Client Loan Interests…
  10. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 10
    Agenda 1 Our company 2 Our financials 3 Our business lines 4 Our market outlook 5 Key takeaways 11
  11. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 11
    Industry leading assets Youngest and most uniform 3D fleet with specialized Arctic capabilities A-Class 12-14 streamers Industries highest ICE class N-Class Polarcus Naila upgraded in H1 14 12 streamers Equivalent capabilities to…
  12. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 12
    Marine acquisition Vessel locations 31 August 14 Strong operational performance across the fleet in H1 14 Polarcus Naila Polarcus Nadia 8 x 75m x 6000m HD 12 x 50m x 6000m HD Fleet technical downtime < 2.5% Polarcus Asima 8 x 75m…
  13. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 13
    Integrated broadband processing solutions New service line launching Q4 2014 offering RightFLOW fast-track broadband processing Managed and operated by Polarcus, powered by DUGs advanced processing software Delivering fully…
  14. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 14
    Multi-Client Young, high quality, broadband data library Multi-Client library assets at end H1 over prime acreage Highly valuable shelf library asset at YE of 5m USD 70m NBV, to drive late sales growth 73m Near/mid-term sales…
  15. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 15
    Agenda 1 Our company 2 Our financials 3 Our business lines 4 Our market outlook 5 Key takeaways 16
  16. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 16
    Global fleet capacity stabilizing No. Vessels Company Vessel Streamer cap. 63 Beginning of Year 666 1 PGS Ramform Atlas 16 1 Dolphin Sanco Sword 12 1 Western Geco Amazon Warrior 16 H1 14 influx of capacity offset by 1 Dolphin Polar…
  17. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 17
    A fundamental urgency for exploration World liquids production by source Conventional oil and gas remains 100 90 the backbone of energy supply 80 Further E&P spending growth 70 mb/d projected in 2015 with a renewed 60…
  18. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 18
    Exploration delivery past and future From a clients perspective The emergence of the Arctic: ice-bound offshore The continuing importance of deep-water for next decade Striving for the perfect seismic image 70 60 Liquid fuels…
  19. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 19
    The Arctic opportunity 412 BBOE 20% of global undiscovered resources 85% projected to be offshore Awarded Arctic licenses to date equivalent to 3x area of US GoM 250 52% Oil 200 150 BBOE Gas 100 20% 50 11% 12% 5% High…
  20. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 20
    Polarcus Arctic strategy pays off Polarcus has: Secured 60% by revenue of all true arctic seismic since 2012 2/3rd of the global High ICE-Class fleet in 2015 In 2015: The Arctic is expected to absorb 10 15% of global seismic…
  21. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 21
    Global seismic opportunities in near/mid term NW Europe: Russia Arctic: 2015 low Expecting min. 6-8 vessels visibility / flat PLCS has an exclusive 3D cooperation agreement with DMNG for all Russia GoM: Expanding leads Med:…
  22. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 22
    Backlog Received contract tenders in USD million (As of end August) USD 235 million backlog* early 450 September 400 350 Booked capacity Q3 2014 - 95% 300 Booked capacity Q4 2014 - 30% 250 200 Booked capacity Q1 2015 -…
  23. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 23
    Adapting to a dynamic market Arctic and environmental offerings delivering awards Contract sales Expanding regional marketing and sales teams Insourcing onboard processing to improve value proposition Disciplined MC investments…
  24. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 24
    Agenda 1 Our company 2 Our financials 3 Our business lines 4 Our market outlook 5 Key takeaways 25
  25. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 25
    Key takeaways Industry leading assets with ultra-wide spread capabilities Strong operational performance with low technical downtime Actions in place to navigate in a challenging market environment in Q4 / Q1 Strong signs of…
  26. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 26
    Appendices 27
  27. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 27
    Key financials Quarter ended Six months ended Year ended (In millions of USD) 30-Jun-14 30-Jun-13 30-Jun-14 30-Jun-13 31-Dec-13 Revenues 137.6 130.5 259.0 275.3 532.2 Cost of sales (80.5) (72.7) (155.1) (157.5) (293.1) EBITDA 49.9 51.1…
  28. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 28
    Income statement Quarter ended Six months ended Year ended (In thousands of USD) 30-Jun-14 30-Jun-13 30-Jun-14 30-Jun-13 31-Dec-13 Revenues Contract revenue 132,237 119,723 248,478 255,521 496,422 Multi-client revenue 5,372 10,758 10,132…
  29. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 29
    Balance Sheet (In thousands of USD) 30-Jun-14 30-Jun-13 31-Dec-13 ASSETS Non-current Assets Property, plant and equipment 959,438 1,000,254 972,802 Multi-client project library 101,329 73,343 88,704 Investment in joint ventures…
  30. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 30
    Cash flow Quarter ended Six months ended Year ended (In thousands of USD) 30-Jun-14 30-Jun-13 30-Jun-14 30-Jun-13 31-Dec-13 Cash flows from operating activities Profit for the period 9,204 6,281 10,166 16,139 43,466 Adjustment for:…
  31. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 31
    Improved financial flexibility Debt maturity profile Q2 2014 Extended maturity and reduced cost Bank debt Sale leaseback USD 125m CB New NOK 350m bond issued and swapped USD 95m bond NOK 350m bond to USD floating interest (currently…
  32. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 32
    Covenant amendments Rolling twelve month debt service MUSD 91 89 87 85 87 85 86 86 Permanent reset of debt service ratio (DSR) to 2.0x 37 37 37 37 37 38 39 38 of bank facility from Q3 onwards 55 53 50 49 48 47 48 47 Actual…
  33. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 33
    The Polarcus share Top 20 Shareholders (as per 01 Sep) Shareholder Share % OEP POLARCUS HOLDING 85,666,033 16.89 Listed on the Oslo Stock SKANDINAVISKA ENSKIL ZICKERMAN HOLDING LTD 51,300,000 40,517,476 10.11 8.00 Exchange…
  34. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 34
    Debt overview as of 30 June 2014 Balance Debt Security Size Tenure Maturity Interest % 30 Jun 2014 Unsecured bond Unsecured NOK 230m NOK 226m 3 years Nov-14 14.00% Unsecured bond Unsecured USD 95m USD 95m 5 years Jun-18 8.00%…
  35. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 35
    Reduced cost of financing Debt Old size USD New size USD Maturity Coupon Old Interest New Interest NOK 350m Unsecured Bond - 58 Jul-19 7.73% - 4.5 NOK 230m Unsecured Bond 37 - Nov-14 14.00% 5.2 - USD 95m Unsecured Bond 95 86 Jun-18…
  36. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 36
    Historical utilization figures 100% 1% 2% 2% 1% 1% 2% 4% 6% 4% 7% 5% 5% 3% 7% 13% 14% 90% 6% 19% 11% 14% 12% 8% 19% 80% 13% 13% 10% 6% 10% 16% 4% 70% 60% 50% 86% 40% 81% 75% 72% 72% 73% 70% 70% 30% 63% 20% 10% 0%…
  37. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 37
    Safety and environmental protections DYNPOS-AUTR Systems redundancy CLEAN DESIGN IMO Green Passport with DP2 High specification DNV-GL Triple-E exhaust catalysts Environmental & Energy Efficiency Sentinel solid streamers…
  38. PARETO OIL & OFFSHORE CONFERENCE – Polarcus – slide 38
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