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Pareto Securities Oil and Offshore Conference – Polarcus

Polarcus · Sep 2, 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 1
    Polarcus Limited Pareto Securities Oil & Offshore Conference 02-03 September 2015 Rod Starr, CEO Tom Henrik Sundby, CFO 1
  2. Pareto Securities Oil and Offshore Conference – Polarcus – slide 2
    Imaging tomorrows energy Industry leading assets Youngest and most uniform 3D seismic fleet Unrivalled environmental and Arctic capabilities Highest ice class and lowest emissions Intelligent design for tomorrow's energy…
  3. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 4
    1 2015 Agenda update 2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 5
  5. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 9
    1 2015 Agenda update 2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 10
  10. Pareto Securities Oil and Offshore Conference – Polarcus – slide 10
    Highlights Improved liquidity position Majority of multi-client library divestment closed on 24 August Extension of USD 25 million working capital facility with 6 months to 30 Sept 2016 Improved covenant headroom Extension of…
  11. Pareto Securities Oil and Offshore Conference – Polarcus – slide 11
    Q2-15 Financial results Cash flow positive before financial items (In millions of USD) Revenue 91.7 EBITDA 38.4 CAPEX 6.0 MC Investment 21.1 +4.8 Cash Flow from operations 31.9 Cash1 47.3 NIBD 629.2 1 Includes restricted…
  12. Pareto Securities Oil and Offshore Conference – Polarcus – slide 12
    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…
  13. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 15
    1 2015 Agenda update 2 Q2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 16
  16. Pareto Securities Oil and Offshore Conference – Polarcus – slide 16
    Marine acquisition outstanding service delivery Continued solid operational performance Vessel locations 01 Sept 15 world wide Two Polarcus vessels offshore Sakhalin Polarcus Asima 12 x 50m x 4,050m Geographically remote operation…
  17. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 20
    Industry tendering activity Received contract tenders in USD million (As of end Aug) Tender activity volatile 450 Millions 400 Activity down YOY and up sequentially from Q1 15 350 300 Large spikes driven by recent APAC…
  21. Pareto Securities Oil and Offshore Conference – Polarcus – slide 21
    Improved backlog outlook Q3-15: 100% Q4-15: 60% Q1-16: 50% Q2-16: 50% 100% Backlog USD 185 million 90% Fleet 80% booked for H2 2015 Fleet 65% booked for next 12 months 80% (July 2015 June 2016) 70% 60% 50% 40% 30% 20%…
  22. Pareto Securities Oil and Offshore Conference – Polarcus – slide 22
    1 2015 Agenda update 2 Financials 3 Operations & market outlook 4 Conclusion / Q&A 23
  23. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 24
    Appendices 25
  25. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – 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. Pareto Securities Oil and Offshore Conference – Polarcus – slide 34
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