First Quarter 2015 Earnings Presentation Danske Banks Navigating the Nordics Seminar Jon Erik Reinhardsen, President & CEO Stockholm, June 10, 2015
Leading Marine Geophysical Company Imaging & Marine Contract MultiClient Operations Engineering Marine market Diverse Productivity Technology leadership MultiClient library leadership differentiation 48% of 2014 revenues 41% of…
The Decline Curve Never Sleeps The global supply challenge 100 93 25 80 Million BOPD 73 60 40 2015 2016 2017 2018 2019 2020 Demand growth, 1Mill BOPD/Yr Depletion rate Source: Shell and Statoil -4-
Current Market Characteristics Cautious spending pattern among oil companies continues to impact seismic demand Some oil companies are advancing tenders to capture low rates Low visibility in all regions Very low prices for…
Marine Contract Bidding Activity 3 500 Bidding activity driven by Asia 3 000 Pacific, North and South America and West Africa 2 500 Graph excludes an increasing USD million share of MultiClient projects 2 000 PGS…
Global Supply and Demand Trends 600 In 2014 sq.km acquired declined Total 3D volume in '000 sq.km. 500 11% compared to 2013 400 300 15-20% decline in sq.km acquired 200 is expected in 2015, compared to 2014 100 0…
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…
Group Cost* Focus Delivers Results Substantial cost reduction from: 300 283 Cost savings initiatives 277 265 271 270 270 266 Currency and fuel price 250 241 Q1 cost lower than trendline due to: Lower cost for vessels stacked,…
Balance Sheet Key Numbers Strong Financial Position March 31 March 31 December 31 USD million 2015 2014 2014 Total assets 3 501.0 3 562.0 3 563.0 MultiClient Library 715.2 666.3 695.2 Shareholders' equity 1 881.0 2 069.3 1 901.6…
Sale and Leaseback of PGS Apollo The only non-Ramform designed 3D vessel in the PGS fleet and best suited for such a transaction 10-year bareboat charter, with an option for a 5-year extension at a reduced rate Option to acquire…
Attractive Debt Structure No Maturities Before 2018 Long term Credit Lines and Interest Nominal Total Financial Covenants Bearing Debt Amount as Credit Line of March 31, 2015 USD 400.0 million Term Loan (TLB), Libor USD 396.0 None,…
Good MultiClient Sales Performance from All Vintages 900 Strong sales progress for all 800 vintages 700 Moderate net book values (NBV) for surveys completed 2010- 600 2015 500 USD Million Work In Progress (WIP) 400…
MultiClient Revenues per Region Pre-funding and Late Sales Revenues Combined 250 Robust MultiClient sales 200 performance in Q1 2015 150 Pre-funding revenues were highest in Asia Pacific and USD million Africa, driven by…
Vessel Utilization Seismic Streamer 3D Fleet Activity in Streamer Months 100 % 90 % Active time in Q2 2015 80 % expected to be approximately 80%, due 70 % to idle time, permit 60 % delays and steaming 50 % Approximately 45% of…
PGS Seismic Fleet 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 Valiant…
Cold-Stacking Ramform Explorer and Ramform Challenger Ramform Explorer and Ramform Challenger are booked through the North Sea season and will be cold- stacked thereafter Will improve fleet performance and utilization Quarterly…
Full GeoStreamer Fleet Coverage in Q4 2015 Main yard stays next 12 months Vessel When Expected Type of Yard Duration Stay Sanco Spirit June 2015 Approximately Renewal class 10 days (vessel owner Sancos cost) Ramform October 2015…
Azimuth Ltd Occasionally oil companies want to exchange license acreage in return for data or services To free up capital and avoid sitting in a license, PGS divests its E&P assets to Azimuth under commercial terms Azimuth is a…
The Azimuth Global Portfolio: 6 Regional Exploration Companies - 22-
Towed Streamer EM Mapping Resistivity of the Sub-surface Complementary to seismic Growing acceptance from oil companies Step change in efficiency compared to node based acquisition Superior data density resulting in more robust…
In Conclusion: Well positioned to Navigate Through the Challenging Market Robust balance sheet No debt maturities before 2018 Reducing costs further Cost effective operations Improved productivity Attractive MultiClient…
Thank you Questions
Appendix Productivity Leadership is Key for Differentiation Relative cash cost efficiency per streamer per day PGS vessels Competitors vessels PGS cold-stacked vessels Recently decommissioned or expected to be decommissioned during…
Appendix 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…
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