ABG Sundal Collier Oil Service Conference Gottfred Langseth, EVP & CFO London February 26, 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…
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 price set to…
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 decade The…
Current Market Characteristics Sharp oil price decline last six months Cautious spending pattern among oil companies impacts seismic bidding, pricing and utilization negatively Low visibility in all regions Further capacity…
Low Marine Contract Bidding Activity 3 500 3 000 Increased delays in conversion 2 500 of Sales Leads into Active Tenders USD million 2 000 Low bidding activity impacts 1 500 pricing and utilization negatively 1…
Order Book 800 700 600 Order book of USD 410 million by end Q4 2014 500 USD million Vessel booking* 400 80% booked for Q1 2015 55% booked for Q2 2015 300 30% booked for Q3 2015 20% booked for Q4 2015 200…
Global Supply and Demand Trends 600 Growth in sq.km. flattened out from 2012 to 2013 Total 3D volume in '000 sq.km. 500 400 300 In 2014 sq.km acquired declined 11% compared to 2013 200 100 15-20% decline in sq.km…
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…
Balance Sheet Position - Key Numbers December 31 December 31 USD million 2014 2013 Total assets 3 563.0 3 544.3 MultiClient Library 695.2 576.9 Shareholders' equity 1 909.7 2 065.6 Cash and cash equiv. 54.7 263.8 Restricted cash…
Attractive Debt Structure No Maturities Before 2018 Long term Credit Lines and Interest Nominal Total Financial Covenants Bearing Debt Amount as Credit Line of end December 31, 2014 USD 400.0 million Term Loan (TLB), Libor USD 397.0…
Good MultiClient Sales Performance from All Vintages 1 000 Strong sales progress for all 900 vintages 800 Moderate net book values (NBV) 700 for surveys completed 2010- 2014 600 USD million Work In Progress (WIP) 500…
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 level…
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…
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…
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 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 Temporarily stacked Recently decommissioned or expected to be decommissioned during 2015…
Appendix 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…
Appendix 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…
Appendix Main Yard Stays Next 12 Months Vessel When Expected Type of Yard Stay Duration Ramform January 2015 During Warm Renewal class Explorer Stack Period Sanco Spirit June 2015 Approximately Renewal class 10 days (Owners…
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