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Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS)

Petroleum Geo Services (PGS) · Oct 27, 2009 · 39 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 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 1
    Unaudited Third Quarter 2009 Results Houston, October 27, 2009 P t l Petroleum Geo-Services G S i ASA
  2. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 2
    Cautionary Statement This presentation contains forward looking information Forward looking information is based on management assumptions and analyses Actual experience may differ, and those differences may be material Forward…
  3. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 3
    Robust Performance - Strong Cash Flow - Improved Visibility Quarterly earnings Strong cash flow Net debt reduced by USD 149 million Group EBIT margin of 26%* Adjusted EBITDA of USD 181 million Improved 2010 visibility By end…
  4. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 4
    Guidance 2009 2009 Adjusted EBITDA of approximately USD 700 million p y 25% on MultiClient and 2009 active Marine 3D vessel capacity: 75% on contract MultiClient cash investments approximately USD 180 million Capital…
  5. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 5
    Cash Generation is Main Focus Original Guidance December 2008 A) Adjusted EBITDA USD 800 800-925 925 million B) CAPEX USD 400-450 million C) MultiClient Cash Investment USD 200 million A-B-C USD 200-275 million Revised…
  6. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 6
    Financial Summary Revenues Adjusted EBITDA 550 534 300 276 500 465 462 241 457 250 231 450 425 220 416 202 USD million USD million 400 200 181 340 161 350 150 300 250 100 200 150 50 Q1 08 Q2 08 Q3 08 Q4 08 Q1…
  7. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 7
    Improving Visibility Further Order book of USD 729 million Marine, including DP, USD 533 million Onshore USD 196 million, up 7% from Q2 Strong vessel booking 1400 Primarily contract work 1200 Primarily Ramforms and GeoStreamer…
  8. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 8
    P t l Petroleum Geo-Services G S i ASA Petroleum Geo-Services ASA Review of Business Segments Unaudited Third Quarter 2009 Results
  9. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 9
    Marine Q3 Highlights Contract revenues MultiClient revenues 350 90 % 140 160 % 319 307 80 % 140 % 300 263 120 267 257 70 % 234 49.2 120 % 250 100 29.1 60 % 100 % USD million 48.2 USD million 200 80 53.7 50 % 80…
  10. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 10
    Marine Vessel Utilization Seismic Streamer 3D Fleet Activityy in Streamer Months 100 % 90 % 80 % 70 % Standby 60 % Yard 50 % Steaming 40 % MultiClient 30 % Contract 20 % 10 % 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 07 07 07…
  11. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 11
    Marine MultiClient Revenues per Region Pre-funding g and Late Sales Revenues Combined 16% of total 3D capacity was used for MultiClient in Q3 2009, compared to 18% in Q3 2008 160 140 120 MultiClient was primarily USD…
  12. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 12
    Marine - Key Figures 2009 2008 USD million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Contract revenues 263 3 263.3 152 3 319.3 152.3 319 3 233 7 233.7 307 0 257.0 307.0 257 0 267 4 267.4 Total MC revenues 74.1 111.7 46.2 130.5 120.1 109.1 79.7…
  13. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 13
    Marine Cost* Development Increase in Marine A Acquisition i iti as a result lt 256* of Ramform Sterlings 250 227* 234* 29 220* entry 25 5 219* 29 20 206* 206 10 7 188* 14 200 21 24 16 10 17 6 18 Increase in…
  14. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 14
    Arrow New-Build Program NB 532 and NB 533 terminated by Arrow in March and August respectively Yard disputed the terminations, with arbitration proceedings scheduled for early December 2009 for NB 532 Work on PGS Apollo (NB 534)…
  15. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 15
    Onshore Q3 Highlights Onshore reported an EBIT of USD 4.1 million in Q3 2009, substantially better than previous quarters The improvement reflects strong performance f from f the th crews in i Mexico, M i generally better…
  16. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 16
    Onshore - Key Figures 2009 2008 USD million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Contract revenues 53.0 45.7 33.5 59.5 53.9 40.1 51.0 Total MC revenues 2.4 0.8 0.8 9.2 18.4 23.3 17.7 Processing and other revenues - - - - - - - Total ota…
  17. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 17
    P t l Petroleum Geo-Services G S i ASA Petroleum Geo Geo-Services Services ASA Consolidated Financials Unaudited Third Quarter 2009 Results
  18. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 18
    Consolidated Statements of Operations Summary Quarter ended September 30 Nine months ended September 30 USD million (except per share data) 2009 2008 % change 2009 2008 % change Revenues 416.4 534.3 -22 % 1 181.7 1 455.9 -19 %…
  19. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 19
    Tax and Impairments Income tax expense was USD 24.4 million in Q3 2009 compared to USD 32.9 million in Q3 2008 Mostly relating to utlization of deferred tax assets (non-cash) Current tax expense of USD 6.9 million in Q3 2009 Q3…
  20. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 20
    Consolidated Statements of Cash Flows Summary Quarter ended September 30 Nine months ended September 2009 USD million 2009 2008 2009 2008 Cash provided by operating act. 163.8 252.4 517.3 656.3 Investment in MultiClient library…
  21. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 21
    Strong Capital Discipline and Debt Reduction Net interest bearing debt reduced by USD 149.1 million in Q3, ending at USD 813 million, with corresponding liquidity reserve of USD 430 million Progress made on targeted asset sales (base…
  22. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 22
    Consolidated Statements of Financial Position - Key Figures Quarter ended September 30 December 31 USD million 2009 2008 2008 Total assets 3 011.5 3 066.9 3 064.8 MultiClient Library 359 2 359.2 292 3 292.3 294 6 294.6…
  23. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 23
    Robust Financing at Attractive Terms Long term Interest Bearing Balance as of Total Credit Financial Covenants Debt September 30, Line 2009 USD 600 million Term Loan (TLB), USD 572 million Incurrence test: total leverage Libor +…
  24. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 24
    P t l Petroleum Geo-Services G S i ASA Petroleum et o eu Geo Geo-Services Se ces ASA S PGS going forward Unaudited Third Quarter 2009 Results
  25. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 25
    Reserve Gap will Increase Dramatically To meet demand growth and offset decline rate there is a need to develop six times the current capacity of Saudi Arabia Source graph and text: IEA -25-
  26. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 26
    Onshore Mid October 2009 Worldwide Operations p Alaska - 1 Crew US - 2 Crews Tunisia - 1 Crew Mexico - 4 Crews Trinidad - 1 Crew Colombia - 1 Crew Cambodia - 1 Crew Seasonal markets Alaska Active crew Inactive…
  27. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 27
    Marine Mid October 2009 Streamer Operation p Atlantic Explorer (Greenland) Pacific Explorer (Sakhalin) Ramform Viking Ramform Valiant Ocean Explorer Ramform Vanguard Harrier Explorer (Mediterranean) ((Gulf of Mexico)) Nordic…
  28. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 28
    GOM MultiClient Wide Azimuth Crystal I & II Crystal I & II cover 580 blocks (13000 km2) Focus on sub-salt Lower Tertiary plays, Tiber Kaskida from exploration to prospect maturation Significant discoveries made e.g Tiber (3 bn…
  29. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 29
    Crystal III East Breaks, WGoM Widening the View Program size 400+ blocks, with potential f additional for ddi i l phases h - Proven working hydrocarbon system with Lower Tertiary Tiber like potential - Active area of leasing at…
  30. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 30
    Bidding Activity Marine Seismic Acquisition Bidding activity is expected to tick up over the next couple of months Large customers indicate plans to acquire more seismic in 2010 than in 2009 3 500 3 000 More positive customer…
  31. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 31
    Marine Seismic Activity Highly Correlated with Oil Price 800 700 600 Correlation Active Tenders and Brent Blend 0.87 500 400 Correlation All 300 Sales Leads and 200 Brent Blend 0.82 100 0 Feb-04 Aug-04…
  32. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 32
    Vessel Lay-off Expected to Reduce Supply Growth 650 600 550 Number of streamers 500 450 400 350 N 300 250 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 06 06 06 06 07…
  33. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 33
    PGS Marine 3D Fleet Reduction 40 streamers to be taken out: Beaufort Bea fort E Explorer plorer con converted erted to 2D Arrow NB 532 cancelled Arrow NB 533 cancelled Nordic Explorer Nordic N di E Explorer l was…
  34. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 34
    Favorably Positioned on the Industry Cost Curve Streamer count eamer per day 401-500 501-600 1-400 ative cash cost effficiency per stre Rela PGS Ramform Vessels Other PGS vessels Decomissioned vessels by year-end year end…
  35. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 35
    Accelerated GeoStreamer Roll-Out Plan Current GeoStreamer Planned GeoStreamer operations roll-out 3D Additional 3D vessels Atlantic Explorer Ramform Challenger is currently being upgraded with (6-streamer) GeoStreamer Immediate…
  36. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 36
    Successful Full Scale Field Trial Towed EM Full scale field trial of towed EM over shallow target Peon gas accumulation 250 km of data in less than one week 3000 m cable 100 m towing depth Proof of concept PGS Towed EM offers…
  37. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 37
    Robust Performance - Strong Cash Flow - Improved Visibility Quarterly earnings Strong cash flow Net debt reduced by USD 149 million Group EBIT margin of 26%* Adjusted EBITDA of USD 181 million Improved 2010 visibility By end…
  38. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 38
    Unaudited Third Quarter 2009 Results Houston, October 27, 2009 P t l Petroleum Geo-Services G S i ASA
  39. Q3 2009 EARNINGS CALL – Petroleum Geo Services (PGS) – slide 39
    Main Yard Stays Next 6 Months Vessel When Expected Type of Duration Yard Stay Nordic Explorer October 2009 Approximately 7 Intermediate days surveys including bottom survey B Beaufort f Explorer E l O b 2009 October…

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