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Q2 2015 Earnings Call – Polarcus

Polarcus · Aug 5, 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. Q2 2015 Earnings Call – Polarcus – slide 1
    Polarcus Limited Second Quarter 2015 05 August 2015 Rod Starr, CEO Tom Henrik Sundby, CFO 1
  2. Q2 2015 Earnings Call – Polarcus – slide 2
    Q2 Headlines Revenues USD 91.7 million, down 33% YOY Up 13% from Q1 15 Continued focus on cost efficiency EBITDA margin increased to 42% from 36% in Q2 14 Improved liquidity position Partial divestment of multi-client project…
  3. Q2 2015 Earnings Call – Polarcus – slide 3
    Market environment Oil company exploration spend reduced Seismic spend typically discretionary expense Increased bidding activity from low levels in Q1 15 Overall bidding activity remains low across all regions Vessel capacity…
  4. Q2 2015 Earnings Call – Polarcus – slide 4
    1 2015 Agenda update 2 Q2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 5
  5. Q2 2015 Earnings Call – Polarcus – slide 5
    The 2015 Agenda Q2 update Riding out the storm Revenue Generation Regionalize sales resources. Penetrate new markets Cost Management Execute & expand cost reduction plans Balance Sheet Management Manage debt. Enhance…
  6. Q2 2015 Earnings Call – Polarcus – slide 6
    1. Revenue Generation: Q2 15 versus Q1 15 Refocused sales efforts and improved market mix (In millions of USD) Pricing: - Realized day rates improved significantly 2.8 -13.2 - Driven by unique PLCS vessel capabilities 17.8…
  7. Q2 2015 Earnings Call – Polarcus – slide 7
    2. Cost Management: Q2 15 versus Q2 14 Strong cost focus and disciplined CAPEX spending 8.7 Gross cost of sales: - Down USD 22.2 million, 27% - USD 6.8 million due to targeted cost management initiatives 6.7 27% CAPEX…
  8. Q2 2015 Earnings Call – Polarcus – slide 8
    3. Balance Sheet Management: Improving liquidity Partial divestment of multi-client library Divestment of Europe and Africa library to TGS Excludes Polarcus Capreolus MC, Australia USD 20 million cash payments received in Q2 For…
  9. Q2 2015 Earnings Call – Polarcus – slide 9
    1 2015 Agenda update 2 Q2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 10
  10. Q2 2015 Earnings Call – Polarcus – slide 10
    Key financials: Profit & Loss (In millions of USD) Revenue USD 91.7 million, down 33% YOY Q2 2015 Q2 2014 FY 2014 13% sequential increase from Q1 15 Revenues 91.7 137.6 466.7 Gross cost of sales down USD 22.2 million, 27% YOY…
  11. Q2 2015 Earnings Call – Polarcus – slide 11
    Key financials: Historical perspective Revenues EBITDA Margin 160 60 50% 137.6 51.1 49.9 140 130.5 50 40% 120 38.4 100 91.7 40 30% 80 30 60 20% 20 40 10 10% 20 - - 0% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15…
  12. Q2 2015 Earnings Call – Polarcus – slide 12
    Key financials: Balance Sheet & Cash Flow (In millions of USD) Q2 2015 Q2 2014 FY 2014 Cash from operations USD 31.9 million Total assets 1,127.3 1,297.4 1,239.2 Multi-Client investments of USD 21.1 million Driven by highly…
  13. Q2 2015 Earnings Call – Polarcus – slide 13
    Increased debt service covenant headroom (In millions of USD) USD 15 million installment freeze provides additional headroom 198 197 EBITDA adjustments for DSR 192 183 187 189 185 USD 35 million equity raised October 14 150…
  14. Q2 2015 Earnings Call – Polarcus – slide 14
    Increased contract utilization 100% 1% 1% 2% 2% 6% 4% 5% 7% 2% 3% 5% 10% 8% Fleet well positioned for Q3 15 90% 14% 11% 14% 12% 2% 9% 16% 16% 100% booked with improved utilization 19% 80% 13% 18% 10% 6% 10% 4% 19% 70%…
  15. Q2 2015 Earnings Call – Polarcus – slide 15
    1 2015 Agenda update 2 Q2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 16
  16. Q2 2015 Earnings Call – Polarcus – slide 16
    Marine acquisition outstanding delivery Continued solid operational performance Vessel locations 01 August 15 world wide Polarcus Adira 12 x 75m x 8,100m Two Polarcus vessels offshore Sakhalin Polarcus Asima 12 x 50m x 4,050m…
  17. Q2 2015 Earnings Call – Polarcus – slide 17
    Unique environmental leadership Quarterly emissions report Q2 Accredited with 5 new qualifications for Comparable vessel using HFO emissions monitoring and reporting by DNV GL 246 203 Industry recognized commitment to Explore…
  18. Q2 2015 Earnings Call – Polarcus – slide 18
    Leveraging innovation - Polarcus XArray Productivity without compromising quality Better Cross-Line sampling Improved In-Line sampling Significantly improved productivity By using multiple sources to increase By acquiring overlapping…
  19. Q2 2015 Earnings Call – Polarcus – slide 19
    Multi-client disciplined investments Focus on building a profitable MC library High prefunding Strong late sales profiles Core focus arenas for new MC projects New proven plays Producing fairways License Rounds NW Australia…
  20. Q2 2015 Earnings Call – Polarcus – slide 20
    Industry tendering activity Received contract tenders in USD million (As of end July) Tender activity volatile 450 Millions 400 Activity down YOY and up sequentially from Q1 15 350 300 Large spikes driven by recent APAC…
  21. Q2 2015 Earnings Call – Polarcus – slide 21
    Improved backlog Q3 15: 100% Q4 15: 60% Q1 16: 50% Q2 16: 35% 100% Backlog USD 195 million 90% Fleet 80% booked for H2 2015 Fleet 60% booked for next 12 months 80% 70% 60% 50% 40% 30% 20% 10% 0% Jul-15 Aug-15…
  22. Q2 2015 Earnings Call – Polarcus – slide 22
    1 2015 Agenda update 2 Q2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 23
  23. Q2 2015 Earnings Call – Polarcus – slide 23
    The 2015 Agenda: Building solid foundations Positioning for the next phase of growth Position Innovation Efficiency Sustainability Geographical expansion Industry leading solutions Capital efficiency Viable business model and…
  24. Q2 2015 Earnings Call – Polarcus – slide 24
    Appendices 25
  25. Q2 2015 Earnings Call – Polarcus – slide 25
    Polarcus in brief Polarcus Limited Fleet of 7 high-end 3D seismic vessels Ticker Oslo stock exchange PLCS 5 vessels operating globally in Contract and Multi-Client markets Shares issued, million 669,8 1 vessel on 5 year bareboat…
  26. Q2 2015 Earnings Call – Polarcus – slide 26
    Industry leading assets Youngest and most uniform 3D fleet with unique environmental capabilities A-Class 12 / 14 streamer ICE-1A and 1A* Triple-E Level 1 Polarcus Naila with 14 streamer capability N-Class post 2014 conversion…
  27. Q2 2015 Earnings Call – Polarcus – slide 27
    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…
  28. Q2 2015 Earnings Call – Polarcus – slide 28
    Income statement Quarter ended Six months ended Year ended (In thousands of USD) 30-Jun-15 30-Jun-14 30-Jun-15 30-Jun-14 31-Dec-14 Revenues Contract revenue 70,656 132,237 115,066 248,478 419,185 Multi-client revenue 21,089 5,372…
  29. Q2 2015 Earnings Call – Polarcus – slide 29
    Balance Sheet (In thousands of USD) 30-Jun-15 30-Jun-14 31-Dec-14 Non-current Assets Property, plant and equipment 893,338 959,438 927,815 Multi-client project library 32,579 101,329 88,731 Investment in joint ventures 1,306 2,469 2,203…
  30. Q2 2015 Earnings Call – Polarcus – slide 30
    Cash flow Quarter ended Six months ended Year ended (In thousands of USD) 30-Jun-15 30-Jun-14 30-Jun-15 30-Jun-14 31-Dec-14 Cash flows from operating activities Profit/(loss) for the period (78,309) 9,204 (104,748) 10,166 (78,635)…
  31. Q2 2015 Earnings Call – Polarcus – slide 31
    Debt overview as of 30 June 2015 Balance Debt Security Size Tenure Maturity Interest % 30 Jun 2015 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% Senior…
  32. Q2 2015 Earnings Call – Polarcus – slide 32
    Cost Management: Plan delivering results (In USD) Focus area Tactics Initial Revised Streamlined support structure Human capital cost Adjustment to compensation & benefits 17m 21m Additional: reduction of crew buffer Insourcing…
  33. Q2 2015 Earnings Call – Polarcus – slide 33
    The Polarcus share Top 20 Shareholders (as per 24 July 2015) Shareholder Share % OEP PARENT LLC 135,707,031 20.26 DNB NOR MARKETS, AKS 52,270,000 7.80 ZICKERMAN HOLDING LT 49,862,476 7.44 Listed on the Oslo Stock ZICKERMAN GROUP…
  34. Q2 2015 Earnings Call – Polarcus – slide 34
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