Earnings Release Q3 2012

Transcription

1 Earnings Release Q3 Robert Hobbs Chief Executive Officer Kristian K. Johansen Chief Financial Officer

2 Forward-Looking Statements All statements in this presentation other than statements of historical fact, are forwardlooking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. These factors include TGS reliance on a cyclical industry and principal customers, TGS ability to continue to expand markets for licensing of data, and TGS ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason. 2

3 Q3 Highlights Record high net revenues of MUSD, up 53% from Q3 Strong profitability with operating profit for the quarter of MUSD, 41% of net revenues, up 66% from Q3 Continued high investment activity with new investments of MUSD, up 25% from Q3 Vessels under TGS control through charter during all or parts of Q3 included five 3D vessels and one wide-azimuth crew An additional five 2D vessels and one 3D vessel were involved in joint ventures with others during Q3 Three land crews were working for TGS during Q3 Arcis consolidated from Q3 integration on schedule Full year guidance revised pre-announcement made 8 October 3

4 Net Revenue Breakdown Q3 GPS 7% 2D 16% GPS 10% Q3 2D 19% 3D 77% 3D 71% Q3 Proprietary 3% Proprietary 10% Q3 Prefunding 40% Prefunding 34% 4 Late sales 57% Late sales 56%

5 Net Revenue Breakdown AMEAP 21% Q3 Other 9% NSA 39% AMEAP 18% Other 15% Q3 NSA 28% Europe 31% Europe 39% 5

6 Financials Kristian K. Johansen Chief Financial Officer 6

7 Key Financials Q Q1 Q2 Net Revenues Q Q Q Q2 Q Q EBIT before non-recurring items 59 Q1 58 Q2 61 Q3 82 Q4 89 Q1 94 Q2 101 Q3 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Prefunding Late sales Proprietary EBIT EBIT Margin Cash Flow from Operations Multi-client Investments (operational) Q Q1 93 Q2 66 Q3 189 Q Q1 Q2 129 Q Q Q1 62 Q2 111 Q3 61 Q4 101 Q1 162 Q2 138 Q3 7

8 Q3 Income Statement USD million, except EPS Q3 Q3 Change in % Net operating revenues % Cost of goods sold - proprietary and other % Amortization of multi-client library 44% % Gross margin % Other operating expenses % Cost of stock options % Depreciation % Operating profit 41% % Net financial items % Profit before taxes 42% % Tax expense % Net income 30% % EPS, Undiluted EPS, Fully Diluted % 73% 8

9 Q3 Cash Flow Statement USD million Received payments Payments for operational expenses Net gain/(loss) from currency exchange Paid taxes Operational cash flow Investments in tangible and intangible assets Investments in multi-client library Proceeds from sale of short-term investments Interest received Interest paid Purchase of own shares Q3 Q % Proceeds from share offerings % Change in cash balance (17) (18) -7% (30) (15) 129 (25) (3) (2) (147) - (0.1) - (1) 1 (0.3) (9) 66 (77) (0.1) (8) Change in % 75% 17% 455% 66% 97% 42% 92% -100% 67% -16% 9

10 YTD Income Statement USD million, except EPS 9M 9M Change in % Net operating revenues % Cost of goods sold - proprietary and other % Amortization of multi-client library 42% % Gross margin % Other operating expenses Cost of stock options Depreciation % 59% 70% Operating profit 44% % Net financial items % Profit before taxes 44% % Tax expense % Net income EPS, Undiluted 31% % % EPS, Fully Diluted % 10

11 YTD Cash Flow Statement USD million Received payments Payments for operational expenses Net gain/(loss) from currency exchange Paid taxes Operational cash flow Investments in tangible and intangible assets Investments in multi-client library Investments through mergers and acquisitons Proceeds from sales of short-term investments Interest received Interest paid Dividend payments Purchase of own shares Proceeds from share offerings Change in cash balance 9M 9M 570 (80) (75) (3) (68) (62) (17) 3 77% (0.4) (0.2) 109% (103) 435 (1) (9) (378) (169) (76) (44) (93) - (23) 5 15 (131) (20) Change in % 31% 6% 135% 9% 41% 85% 124% 73% 292% 11% -100% -68% 545% 11

12 Balance Sheet USD million Assets Cash equivalents Financial investments available for sale Other current assets Total current assets Intangible assets and deferred tax asset Other non-current assets Multi-client library Fixed assets Total assets Liabilities Current liabilities Non-current liabilities Deferred tax liability Total liabilities Equity Total liabilities and equity Q3 Q2 Change in % Q % % % % -2% 0% % -4% ,523 1,447 5% 1, % % 1% % 360 1,084 1,523 1,002 1,447 8% 5% 973 1,333 TGS has no interest bearing debt 12

13 Investments per Vintage Net Book Value (NBV) in % of original investment (year-end) vs allowed maximum % (year-end) % 3 % % % % 0 % 20 % 16 % % 25 % WIP 60 % 30 % % % Original investments Maximum allowed NBV (year-end) Net Book Value 13

14 Net Revenues vs. Net Book Value per Vintage 70% 62% 60% 57% 50% 40% 30% 20% 10% 0% 18% 13% 12% 10% 8% 6% 4% 4% 2% 2% 2% 0% pre WIP Net revenues Net book value 14

15 Operational Highlights Robert Hobbs Chief Executive Officer 15

16 License Round Activity and TGS Positioning Northeast Greenland: Pre-round for Kanubas Consortium - bids due 15 December Ordinary Round opens 15 June 2013 and closes in Oct 2013 Norway: 22 nd Round bids due 4 December with awards in early summer 2013 APA application closed 6 September Canada Newfoundland: Flemish Pass opened 5 April. Laurentian Sub Basin opened 9 March. Bids on both areas due 1 Nov Canada Nova Scotia: Opened 30 April and bids due 7 Nov New 5 Year Plan: H2 Western Gulf of Mexico: 28 Nov United Kingdom: UK 27 th round bids closed1 May Sierra Leone: License round closed 30 March Liberia: Ultra Deep Round expected in 2013 Central Gulf of Mexico: 20 March 2013 Brazil: Round 11 announced for May 2013 pending congress passing laws on royalty sharing Indonesia: First Petroleum Bidding round awarded 25 May Pre-Salt announced for Nov 2013 Expected Announced Australia Acreage release announced May Second Petroleum Round Launched 9 October offering 23 blocks: direct proposals due 27 Nov regular tenders closed 19 Feb

17 Q3 3D Operations Kansas Crew Saskatchewan Crew Ohio Crew RamformViking Polarcus Amani Polar Duchess Polarcus Adira WAZ Crew Geco Eagle Ramform Sterling 17

18 Q3 2D Operations Akademik Shatskiy Osprey Explorer Sanco Spirit Akademik Fersman Polar Explorer 18

19 Current Onshore Surveys United States Firestone 3D - expanded to 658 km 2 in liquid rich Utica play Bucklin 3D km 2 of 3D data in Mississippi Lime Oil Play Wellington 3D km 2 of 3D data in the Mississippi Lime Oil Play Canada Neptune South km 2 of 3D data in the Bakken Oil play Unity North km 2 of 3D data in the Birdbear play of Western Saskatchewan Cameron River km 2 of 3D data in the liquids rich Triassic Montney and Doig unconventional fairways Legacy 3D Data - 12,689 km 2 19

20 Australia Continued Expansion Mary Rose 8,800 km 2 Acquisition complete April Mary Rose NE 3,500 km 2 Acquisition complete April Gnaraloo 2,300 km 2 Acquisition complete April Honeycombs 2,500 km 2 Acquisition complete October TGS portfolio of 3D multi-client coverage in Australia exceeds 17,000 km 2 20

21 Northeast Greenland activity - NEG12* 3,660 km 2D data in Northeast Greenland 2013 licensing round: Greater than 7,900 km of data inside the Kanumas licensing round area Additional TGS data available in NE Greenland: 10,000 km of 2D data Aeromagnetic and gravity data Sea bottom sampling Basin studies and reports *In partnership with Fugro 21

22 Eastern Canada Growth Labrador Sea* 22,000 km multi-client 2D survey offshore Newfoundland in the Labrador Sea Newfoundland Flemish Pass* 20,000 km multi-client 2D survey over Northeast Newfoundland Shelf 7,500 km acquired in and the remaining in the 2013 season * In partnership with PGS and utilize GeoStreamer technology 22

23 Europe 3D Activity During Barents Sea: Nordkapp Fault East (NKFE12) -1,403 km 2 Finnmark Platform (FP12) -2,483 km 2 Northern North Sea: End of the World (EOTW11 and EOTW12 ) - 15,307 km 2 Erlend Basin (EB 12) - 3,178 km 2 Erlend West (EW 12) - 1,539 km 2 West of Shetland Faroe Shetland Basin (FSB12)* - 2,755 km 2 *In partnership with PGS 23

24 Northwest Africa Mauritania expansion 11,256 km 2D* Acquisition to complete in December Total data now available 17,395 km 2D* 2,567 km2 3D *In partnership with Dolphin Geophysical 24

25 Clari-Fi - Broadband Original processing Processing methodology that increases bandwidth and improves imaging May be applied to conventionally acquired pre- or post-stack data Addresses ghost and filtering effects Opportunities for reprocessing of existing library Strengthens technology offerings on new projects Clari-Fi 25 Data from West of Shetlands

26 Outlook Robert Hobbs Chief Executive Officer 26

27 Backlog Historical Backlog (MUSD) Q Q Q Q Q Q Q Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Backlog declines as record summer investments completed 27

28 3D Marine Acquisition Capacity Secured EUR AMEAP NSA Option Vessel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ramform Sterling Honeycombs Viking Vision Mary Rose NW Australia Geo Atlantic Mary Rose NE. Gnaraloo Geco Eagle Angola Option WG WAZ Crew Ramform Viking Patriot (GOM) Independence FSB12 Polar Duchess FP12 EB12W EW12 Polarcus Amani/Adira MF11 EOTW12 Polarcus Samur EB12 Atlantic Explorer SVG11 28

29 2D Marine Acquisition Capacity Secured EUR AMEAP NSA Option Vessel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sanco Spirit Canada Osprey Explorer Akademik Shatskiy Akademik Fersman NBR12 - NW Europe NSR12 - NW Europe Greenland 12 Russian Arctic Colombia Artemis Atlantic W-Africa Polar Explorer W-Africa 3D Land Acquisition Capacity Secured Land Crew Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kansas Crew 1 Bucklin - Kansas Kansas Crew 2 Ohio Crew Welllington - Kansas Firestone- Ohio Canada Crew (Neptune) Canada Crew (Unity) Canada Crew (Cameron River) 29

30 Summary Record high revenues in Q3 of MUSD (up 53% Y/Y) Operating profit of MUSD, 41% of net revenues (up 66% Y/Y) Operational investments of MUSD backed by prefunding of 72% Strong seismic demand in all key markets allows TGS to update guidance: Multi-client investments MUSD Average pre-funding 60 70% Average multi-client amortization rate 41 47% Net revenues MUSD Contract revenues less than 5% of total revenues Full year 2013 guidance will be announced second week of January

31 TGS Performs in all Cycles ROCE vs. Seismic Peers EBIT Margins vs. Seismic Peers 100% 80% 80% 60% 60% 40% 20% 0% -20% 40% 20% 0% -20% -40% -40% -60% -80% -100% -120% TGS Peer Range Peer Average -60% -80% -100% TGS Peer Range Peer Average ROCE consistently outperforming peers Average EBIT margin above 40% Stable EBIT performance through the cycles * ROCE is based on EBIT divided by average capital employed. Peer group includes CGG Veritas, Fugro, Geokinetics, ION Geophysical, PGS, Western Geco, and GGS Source Platou Markets and TGS 31

32 Thank You 32