Magseis ASA Q th August Expanding operational footprint

Transcription

1 Magseis ASA Q th August 2018 Expanding operational footprint

2 Disclaimer This presentation (the Presentation") has been prepared by Magseis ASA (the Company or Magseis ). The Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Company and/or industry and markets in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words aims, anticipates, believes, estimates, expects, foresees, intends, plans, predicts, projects, targets, and similar expressions. Any forward-looking statements and other information contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts based on the current expectations, estimates and projections of the Company or assumptions based on information currently available to the Company, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. The Company makes no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither the Company nor any of its directors, officers or employees shall be liable to you or to any other party for any losses incurred as a result of your or their use of, or reliance on, any information contained in the Presentation. This Presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities, and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. The information in this Presentation is subject to verification, completion and change. The contents of this Presentation have not been independently verified. The Company s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the US Securities Act ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S under the US Securities Act. This Presentation should not form the basis of any investment decision. The Presentation speaks and reflects prevailing conditions and views as of the date of this presentation. It may be subject to corrections and change at any time without notice except as required by law. The delivery of this Presentation or any further discussions of the Company with any recipient shall not, under any circumstances, create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs of the Company since such date.

3 AGENDA Introduction Financials Market development and operations Summary 3

4 Highlights Q Financial Performance Revenue of USD 19.7m and EBITDA of USD 5.2m Net cash flow from operations USD 3.2m Sufficient funding for node CAPEX program Operational Performance Successfully scaling from one to three crews in operation Interchangeable node covering cable, ROV & rope deployment Focus on more efficient and cost effective solutions Launching MASS III node, 150 days battery life with 40% CAPEX reduction Extended Athene on flexible charter at reduced rates No new vessel on long-term charter - cost base flexibility Further growth, backlog and outlook Three contract awards and backlog at USD 65m Continued guidance of expected revenue for 2018 of USD 100m 4

5 Corporate snapshot Geophysical company founded in 2009 with first operation in 2013 Develop and operate proprietary technology to be applied in seismic acquisition operations Headquarter in Oslo, Norway with offices in Stockholm, Singapore and Houston 168 employees of which ~45% offshore $ OSE:MSEIS MCAP USD~170 million Transferred to main list in JUN 18 5

6 AGENDA Introduction Financials Market development and operations Summary 6

7 Q results - Comprehensive income In USD thousands Q (unaudited) % Q (unaudited) % YTD 2018 % FY 2017 (audited % Revenue Cost of sales Research and development SG&A and other expenses EBITDA Depreciation & Amortisation Impairment EBIT Net interest and fx (gain)/loss Other finance cost Net finance costs EBT Tax Net income Revenue Mainly related to Saudi Arabia Cost of sales & SG&A Scaling up operations 3 parallel operations in Q318 Scaling up sales & administration Depreciation Increased node pool to Finance Unrealized exchange loss of USD 1,1m due to weakening NOK vs USD in Q218 Tax Withholding tax in Saudi Arabia net of USD 600k received from previous survey Currency translation differences Total comprehensive income

8 Second quarter 2018 results - Balance sheet In USD thousands YTD 2018 (unaudited) YTD 2017 (audited) YE 2017 Equipment and other intangibles Multi-client library Cash and cash equivalents Trade receivables Stock (fuel and batteries) Other current assets TOTAL ASSETS Share capital Share premium Retained earnings and other reserves TOTAL EQUITY Obligation under finance lease Other non-current financial liabilities TOTAL NON-CURRENT LIABILITIES Trade payables Current tax liability Other current liabilities TOTAL CURRENT LIABILITIES Trade receivables comprising BGP/Saudi Aramco 1 overdue invoice end June paid in July Other current assets Prepayments and deposits of USD 3.5m Equity ratio of 84.1% In compliance with all covenants Liabilities Senior debt from Export Credit Norway and Innovation Norway of USD 4.15% interest (split non-current USD 5.1m and USD 1.9m current) Shell Deep Water R&D funding: USD 7.3m (contingent liability) Received non-binding indicative term-sheet for funding of new nodes and working capital TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

9 Second quarter 2018 results - Cash flow In USD thousands Q (unaudited) Q (unaudited) YTD 2018 FY 2017 (audited) Earnings before tax Depreciation & Amortization Net working capital adjustments Cash flow from operations Positive cash flow from operations; overdue trade receivables end June paid in July Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Cash flow from investments USD 11m in new CAPEX for new nodes according to growth plan Cash from financing Equity issue in FEB 2018 sufficient to finalise CAPEX program for new nodes Net change in cash and cash equivalents Cash balance at the beginning of the period Cash balance at period end Cash position Robust cash position of USD 36.2m 9

10 Transfer to Oslo Børs On 1st June 2018, Magseis ASA transferred its listing of shares to Oslo Børs (Oslo Stock Exchange). This will bolster the company s exposure to capital markets and investors globally 10

11 KEY FIGURES Q $ MILLION REVENUE 19.7 $ MILLION $ MILLION EBITDA NET PROFIT -0.5 $ MILLION $ MILLION CASH BALANCE REVENUE Q EBITDA Q REVENUE Q EBITDA Q

12 AGENDA Introduction Financials Market development and operations Summary 12

13 Q Preparing for increased activity The technical performance of both the Artemis Athene and our MASS Modular operations continue to impress with more than 99,7% technical uptime during Q218 One ROV based 4D monitor operation conducted in the North Sea, again proving the versatility of our MASS Modular system Recruitment and training of crew and support staff in preparation for three parallel operations in Q318 Two fully robotised MASS Modular systems readied in preparation for operation of MASS nodes in addition to the nodes already in operation in the Red Sea 13

14 Three parallel operations MASS Modular Crew 3 Fully automated MASS Modular Operation Shallow water - Nodes on a Rope Dual node deployment vessels End client - Major oil Company Operating as a subcontractor ATHENE Crew 1 MASS Modular Crew 2 Marine Autonomous Seismic System Fully automated MASS Modular Operation ROV & Source vessel chartered on project basis Two Major Oilco s and one National Oil Company Four different surveys combined into one project Magseis operating as prime contractor Artemis Athene Into her 24 th month in the Red Sea MASS Cable operation Very rugged seabed terrain Zero to 1100 m water depth Nodes on a rope in shallow water Multi vessel operation End client - National Oil Company Operating as a subcontractor 14

15 Magseis takes the next step in node development Current inventory Growth MASS I NEW MASS III MASS I MASS I Up to 65 days battery lifetime Up to 150 days battery lifetime 40% reduction in cost from MASS I MASS I MASS III Extended battery life will transform the node operation model and improve cost efficiency 15

16 Strong Market Outlook Undersupply in 2019 Node supply vs expected demand Q Q Q Q Q Q Q Q

17 Growth strategy Key goal Business model By 2020 Improve margins Increase addressable market, efficiencies & operational excellence Technology champion nodes, handling systems and source Modular handling systems Modular deployment systems cable, ROV and & rope opportunity Node pool of > nodes 4-6 containerised handling and deployment systems Deliver leading source technology Developing Magseis into the OBS market leader 17

18 AGENDA Introduction Financials Market development and operations Summary 18

19 Improving cost efficiency Shortage of supply in 2019 Sufficient funding for node growth plan Expanding operational footprint 19