FOURTH QUARTER 2014 RESULTS. Oslo, 5 February 2015, CEO Bjarte Bruheim and CFO Svein Knudsen
EMGS today Strong financial position Flexible and asset-light business model Revenue-generating assets 4 vessels in operation 4 growing multi-client libraries Proven technology 3D platform Full-azimuth 3D EM JIP for next…
EMGS revenue-generating assets MC libraries Canada Norway 2,500 sq.km 52,000 sq.km USD 9 million invested USD 67 million invested USD 2.5 million sold USD 176 million sold US GoM 5,400 sq.km USD 18 million invested USD 7 million…
EMGS revenue-generating assets Fleet BOA Galatea Atlantic Guardian Mexico Multi-client project Barents Sea, Norway BOA Thalassa EM Leader Asia Operating in Uruguay
EMGS after 3D EM introduction - a sustainable business Amounts in 1,000 USD 2011 2012 2013 2014 SUM Contract revenue 162 904 176 118 111 284 137 222 587 528 MC Revenue 9 510 24 713 33 314 60 801 128 338 Net Revenue 172 414 200 831 144 598…
Improvements to commercial model Sales organisation strengthened and tailored to meet Sales force located close to NOCs exploration needs Geographic deployment of sales force: - Houston 8 - Oslo - Kuala Lumpur Commercial sales 18…
Positive development in new customers. 16 14 12 10 8 15 6 4 7 7 2 4 0 2011 2012 2013 2014
Fourth quarter overview
Operational highlights fourth quarter 2014 Contracts for BOA Thalassa in Malaysia, Thailand and Myanmar Large contract with BG Group for EM Leader in Uruguay First sale from multi-client library in Foz do Amazonas in Brazil…
Financial highlights Key figures Q4 Revenues and revenues/costs per vessel month (USD Million) 60 7 Revenues of USD 52.5 million 50 6 EBITDA of USD 18.6 million 40 5 4 Net income of USD 15.1 million 30 3 20 2 10 1 Cost…
Capital Structure Balance sheet as at 31.12.14 (USD million) Cash at USD 26.6 million, down from USD 42.5 million 250 end of previous quarter - Trade receivables increased by USD 24.1 million USD 48.5 million 200 to USD 65.5 million -…
Multi-client increasingly important part of business 12% 23% 31% 69% 77% 88% 2012: USD 201 million 2013: USD 145 million 2014: USD 198 million Contract: USD 176 million Contract: USD 111 million Contract: USD 137…
Profitable multi-client investments Multi-client key figures by vintage Multi-client key figures by region 80 80 160 160 70 70 140 140 60 60 120 120 Amounts in USD'(millions) Amounts in USD'(millions) 50 50 100 100 40…
Market and outlook
How to increase the discovery rate Geology and Elecromagnetic seismic data data Reservoir Trap Seal Charge Commercial volume USD 32bn USD 0.7 bn /4 years / 4 years
Why do we fail in finding hydrocarbons Low discovery rate today 8/9 of 10 exploration wells fail to find commercial levels of Trap 10% Reservoir 15% hydrocarbons Seal 45% Two main reasons for failure Charge Lack of seal: 45% 30%…
How seismic and EM data complements Arbitrary seismic profile from Wisting and the surrounding area
EMGS prioritised multi-client basins going forward Canada Barents Sea US GoM Mexico Brazil
Market update Order book (USD million) Contract opportunities 140 Expect to keep one vessel in Asia and one in South-Atlantic in 2015 120 Opening up of Mexican shelf expected to increase activity Continue to have a strategic focus on…
Summary Strong financial positioned and well positioned to meet a challenging business environment, but also act on opportunities EMGS products well positioned to help oil companies manage through cycle, cut cost and increase…
Questions
Appendix
Income statement USD million Quarter ending Full year ending 31.12.2014 31.12.2013 31.12.2014 31.12.2013 Contract sales 25.5 40.1 137.2 111.3 Multi-client sales 27.0 4.8 60.8 33.3 Total revenues 52.5 44.9 198.0 144.6 Charter hire, fuel…
Financial position USD million Period ending ASSETS 31.12.2014 31.12.2013 Goodwill 14.4 14.4 Deferred tax asset 3.0 3.2 Multi-client library 33.8 28.1 Other intangible assets 3.2 3.4 Property, plant and equipment 19.2 27.7 Assets under…
Cash flow USD million Full year ending 31.12.2014 31.12.2013 Net cash flow from operating activities 31.7 51.9 Net cash flow from investing activities (59.5) (45.3) Net cash flow from financial activities (2.3) 9.5 Net…
Largest shareholders (as of 4 February) Shareholder Shares Holding 1 SIEM INVESTMENTS INC 22 926 866 11.48 % 2 PERESTROIKA AS 17 889 449 9.46 % 3 Morgan Stanley & Co 18 576 200 9.30 % 4 ODIN OFFSHORE 9 651 299 4.83 % 5…
Vessel charters and yard stays BOA Thalassa BOA Galatea Atlantic Guardian EM Leader Firm Charter December 2015 July 2016 1 March 2016 8 December 2016 Options 1 x 1 year 3 x 1 year 2 x 1 year Vessel owner BOA Offshore BOA…
Electromagnetics in the E&P workflow Gravity/ Magnetics Detailed 2D seismic 3D seismic Production data Regional 2D seismic Lease Sale Borehole data 4D seismic Basin Frontier Exploration Development Production Abandonment…
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