Leading Marine Geophysical Company Imaging & Marine Contract MultiClient Operations Engineering Marine market Diverse Productivity Technology leadership MultiClient library leadership differentiation 47% of revenues LTM 42% of…
Strategy for Taking the Lead Lessons Learned from Previous Downturns Conservative financial gearing creates cyclical robustness Long term financing in place Preserving dividend capacity MultiClient reduces earnings volatility…
Market Context: Low Oil Price Not Sustainable Substantial Incremental Supply At Risk Incremental demand Incremental supply 100/bbl Incremental supply 80/bbl Incremental supply 60/bbl Long term business 3 case still intact 2 Low oil…
Market Context: Low Oil Price Not Sustainable Project Delays Create Supply Shortfall Delays of big-ticket production projects among oil majors would deprive the world of 7.5 million barrels a day of new output over the coming…
Market Context: Low Visibility and Significant Market Uncertainty 60 % Marine contract EBIT margin development 50 % 2015 Marine Contract EBIT margin 40 % expected to be in line with previous trough years 30 % 20 % Seismic…
Decent Booking Low Visibility 3 500 Reduction in leads the last two 3 000 years is primarily due to lower prices 2 500 Good inflow of sales leads in December USD million 2 000 Q1 2015 is expected to be 1 500…
Balance Sheet Well Positioned for a Challenging Market Liquidity reserve of USD 470.4 3600 Goodwill million at end Q3 2014 Other intangible assets Other In addition USD 267 million of liabilities 3200 undrawn Export Credit…
Dividend is a Priority 2.5 50 % Solid dividend growth PGS targets growth of dividend capacity 2 +39% 45 % and dividend over time Dividend per share in NOK Solid dividend growth since dividend policy 1.5 40 % +50% was introduced…
Debt and Facility Maturities Further Extended December 2013 December 2014 -100 Term Loan B Term Loan B Average remaining time to maturity Refinanced 397m 470.5m increased to 5.0 years due June 2021 due June -400 2015 Senior…
Rescheduled Delivery Times for New Builds Delivery times for Ramform Tethys and Ramform Hyperion rescheduled to Q1 and Q3 2016 Reduces 2015 CAPEX by at least USD 160 million compared to previous baseline No cost impact for…
Two Last New Builds are Fully Financed Timing of Instalments 200 Available undrawn ECF financing of USD 267 million corresponds 100 Paid NB to remaining yard instalments CAPEX by end 2014 Remaining Cash flow and secured ECF…
Headroom to Maintenance Covenant 3.00 Net interest bearing debt forecasted Indebtedness / Adj. EBITDA 2.50 2.00 to show relatively flat development 1.50 in 2015 1.00 0.50 Good headroom to maintenance 0.00 covenant in the…
2015 Sources and Uses of Cash Expecting Robust Cash Flow in a Weak Market 700 Illustration of 2015 cash flow drivers Cash flow from operations to cover MultiClient investments, NB CAPEX maintenance CAPEX, interest & financing/debt…
PGS Seismic Fleet End 2014 Ramforms Conventional Delivery 2016 Titan class Ramform Titan Ramform Atlas Ramform Hyperion PGS Apollo Ramform Tethys S class Ramform Sterling Ramform Sovereign 2D/EM/Source V class Ramform…
Increased Sales from a Larger MultiClient Library 400 MultiClient cash investment and 180 % pre-funding level (rhs) 160 % After PGS sold its Onshore division 140 % 300 in 2010, MultiClient was organized 120 % Pre-funding…
Asset Light Growth Opportunities Maturing OptoSeis PGS was awarded a Permanent Reservoir Monitoring (PRM) contract with Petrobras over parts of the Jubarte field in 2010 PGS OptoSeis technology is now well proven with outstanding…
In Conclusion: Well Positioned to Navigate Through a Challenging Market Robust balance sheet No debt maturities before 2018 Cost effective operations Improving productivity Reducing costs further Solid MultiClient sales…
Thank you Questions
Attractive Debt Structure No Maturities Before 2018 Long term Credit Lines and Interest Nominal Total Financial Covenants Bearing Debt Amount Credit Line September 30, 2014 USD 400.0 million Term Loan (TLB), Libor USD 398.0 None, but…
Capital Expenditures 2015 Trends and Projections 500 Full year 2014 CAPEX expected to be 450 approximately USD 375 million Of which approximately USD 210 400 million relates to new builds 350 2015 CAPEX plan of approximately USD…
Solid MultiClient Pre-funding 180 % 160 % 2014 MultiClient cash investments of 140 % approximately USD 350 million with a pre-funding level of approximately 90% MC pre-funding 120 % 100 % 80 % MultiClient cash investments…
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 600 2009-2014 USD million 500 Work In Progress (WIP)…
The Industry Fleet is Adjusting Quite Fast to Lower Spending PGS vessels Competitors vessels Temporarily stacked Recently decommissioned or expected to be decommissioned during 2014 and 2015 Vessel decommissioning contributes…
Main Yard Stays Next 12 Months Vessel When Expected Type of Yard Stay Duration Ramform January - During Warm Renewal class Explorer February 2015 Stack Period Sanco Spirit June 2015 Approximately Renewal class 10 days (Owners…
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