1 st Quarter 2017 Results Unaudited

Transcription

1 1 st Quarter 2017 Results Unaudited April 27 th 2017

2 CAUTIONARY STATEMENT This presentation contains both statements of historical fact and forward looking information. Any forward looking information is based on management assumptions and analysis and are subject to risks and uncertainties that are difficult to predict as they relate to events and/or circumstances in the future. Actual results and events may differ materially from those expected or projected in the forward looking statements. Spectrum undertakes no responsibility or obligation to update or alter forward looking statements. This presentation should be read in conjunction with the 1 st quarter 2017 Earnings Release issued by Spectrum April 27 th 2017.

3 Q Highlights Q1-17 Q1-16 Change Net Revenue MUSD 25 MUSD 18 39% EBITDA MUSD 19 MUSD 12 62% EBIT MUSD (3) MUSD (7) 60% Q MC investments of MUSD 27 (MUSD 28 in Q1 2016) Amortization rate of 85% in the quarter Net cash of MUSD 17 end of quarter (MUSD 16 end Q4) Revolving Credit facility of MNOK 195 extended by 24 months from end June 2017

4 Rolling MC Net Sales - Late Sale, Early Sale and Other Revenue 4 Quarter Rolling MUSD Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Late Sale Early Sale Other Revenue

5 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 Q12017 Q1 Highlights Q1-17 Q1-16 Operational Cash Flow MUSD 36 MUSD 44 MC Investment MUSD 27 MUSD Rolling MC Net revenue 4 quarter / Rolling MC Investment Multi-Client investments impacted by the Fugro library acquisition Q Q1 2016

6 Q MC Revenue by Region MUSD 25 Q Net MC revenue MUSD

7 Argentina campaign started in Q2 35,000 km MC2D long offset broadband data, in partnership with BGP Acquisition commenced April 20 th, first products available in Q Covering 435,000 sq.km of deep water area, allowing for basin-wide studies and prospect/lead level interpretation studies Survey designed in close cooperation with YPF S.A. Data will assist the ministry in placement of license rounds Supported by industry

8 Financials

9 Q Income Statement Spectrum Group Quarter Quarter 12 months ended ended Change ended (USD 1000) in % Net revenue 25,324 18, % 86,852 Amortisation of Multi-Client library (21,640) (18,156) (67,391) Impairment - - (12,867) Operating expenses (5,537) (6,072) -9 % (24,276) Cost of stock options (420) (181) 571 Share of profit/(loss) of joint ventures Depreciation (434) (608) -29 % (2,069) EBIT (2,706) (6,791) 60 % (19,048) Net Financial items 4 (1,190) (3,444) Profit / (loss) before tax (2,703) (7,981) 66 % (22,493) Tax income / (expense) (1,017) 80 2,210 Net Profit / (Loss) to equity holders (3,720) (7,901) 53 % (20,283) Earnings per share (0.07) (0.15) (0.38) Diluted earnings per share (0.07) (0.15) (0.38)

10 Multi-Client NBV & Investments Q MC investments MUSD 27 (Prefunding of 56%) Amortization Q % MUSD FY FY 2013 FY FY Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q Investment Closing NBV

11 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 Q12017 Rolling Earnings & Net Sales / Book Value of MC library EBITDA 4 quarter rolling / book value of MC library rolling EBIT 4 quarter rolling / book value of MC library rolling MC Net revenue 4 quarter rolling / book value of MC library rolling

12 Investment per Vintage Net Book Value (NBV) as % of original investment per financial year MUSD % % % 0 0% 0% 6% 8% Work in progress Original Investment % Actual NBV

13 Balance Sheet Key Figures SPECTRUM GROUP Assets (USD 1000) (Unaudited) (Audited) MC Library 198, ,721 Other Intangible Assets 19,273 19,951 Tangible Assets 3,863 4,138 Receivables 71,425 81,044 Cash and Equivalents 16,681 15,827 Total Assets 309, ,680 Equity and Liabilities (USD 1000) (Unaudited) (Audited) Equity 179, ,845 Long Term Liabilities 50,740 27,923 Current Liabilities 79, ,914 Total Equity and Liabilities 309, ,680 Net secured interest bearing debt 17,968 26,729

14 Cash flow Key Figures SPECTRUM GROUP Quarter Quarter 12 months Cashflow ended ended ended (USD 1000) Cash flows from operating activities: Profit / (Loss) before tax (2,703) (7,981) (22,493) Income taxes paid - (32) (32) Depreciation, amortisation and impairment 22,074 18,764 82,327 Other financial items inclusive share options ,548 Working capital changes 15,625 32,568 (1,135) Net cash flow from operating activities 35,560 44,014 61,215 Cash flows from investing activities: Investment in multi-client library (27,280) (27,733) (50,671) Investment in other assets (180) (221) (925) Net cash flow from investing activities (27,460) (27,954) (51,596) Cash flows from financing activities: Issued share capital 1, Net of borrowings including interest (8,615) (861) (17,469) Net cash flow from financing activities (7,216) (861) (17,469) Net change in cash and cash equivalents ,199 (7,850) Net foreign exchange diff (unrealised) (30) (898) 304 Cash and cash equivalents at start of period 15,827 23,373 23,373 Cash and cash equivalents at end of period 16,681 37,674 15,827

15 Operations

16 Operations Summary Three active surveys during Q1 MC2D, Santos Campos (4 days acquisition) MC2D, Brazil Potiguar basin MC3D, Gabon Gryphon + extension Reprocessing 157,974 km of MC2D data 35,300 sq.km of MC3D data

17 Areas of High Interest Relevant Licensing Activities Australia - regular rounds Norway - APA & 24 th rounds Uruguay - 3 rd round opening Sep 2017 Brazil - round opening expected H Lebanon - round announced for 2017 Mexico - round two in H Somalia - 1 st round expected 2017 Namibia/S Africa - open door Key Exploration Wells 2017

18 MC2D projects during Q1 Santos Campos Phase 2 17,700 km MC2D long offset broadband data, in partnership with BGP Acquisition completed January 4 th, products available in Q Expanding coverage over prospective pre-salt basins for an anticipated round in 2017 Supported by industry

19 MC2D projects during Q1 MC2D Potiguar Phase 2 6,000 km long offset broadband data, in partnership with BGP Survey started mid January and completed mid March, products available in Q Area of interest for an anticipated 15 th round in 2018

20 MC3D projects during Q1 Western Barents Sea 3D survey Broadband (re)processing of three Spectrum MC3D surveys Merging the SWB-11, SWB-12 & SWB-16 3D s, final volume of 14,100 sq.km Fast track products available for the 24 th & APA rounds in 2017 Spectrum coverage and wells planned for 2017

21 MC3D projects during Q1 Gabon Gryphon 3D survey 11,000 sq.km MC3D broadband survey Mainly over open blocks, water depths between 30m to 500m Survey started Dec 31 st, completion early Q (shallow water extension is completed) Shallow water license rounds will be coordinated with DGH upon availability of data Supported by industry Two further surveys planned for 2017

22 MC3D projects during Q1 Olympus MC3D reprocessing 21,300 sq.km broadband reprocessing project High-grading existing Spectrum 3D data (purple) Coverage extended by reprocessing open file data (blue), partially in cooperation with Searcher Seismic Final products available in Q Supported by industry

23 Outlook

24 Outlook Sales from existing library continues to be challenging, but sales leads are increasing Several license rounds scheduled for 2017 relevant for Spectrum MC library New project development progressing well for 2017 Spectrum will take advantage of the generous supply side and increase MC investment in 2017 over 2016