Pareto Oil & Offshore Conference Oslo, 3 rd September Jan Schoolmeesters, COO

Transcription

1 Pareto Oil & Offshore Conference Oslo, 3 rd September 2015 Jan Schoolmeesters, COO

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.

3 Spectrum in a nutshell Spectrum is a pure-play Multi-Client Seismic provider Spectrum is asset light, vessels are chartered on a project-by-project basis Spectrum holds the largest marine 2D Multi-Client library in the industry Spectrum builds 3D library in selected areas Spectrum has 220 employees, with a majority of geoscientists Market Cap ~ NOK 1.55 billion Yellow areas indicate Spectrum seismic data coverage Offices: Oslo Stavanger London Cairo Houston Rio de Janeiro Perth Singapore Jakarta

4 Principles of Multi-Client business Invest in seismic projects at «the right place at the right time» Exploration driven seismic projects (open area): New Discoveries Upcoming Licensing Rounds New Acreage opening up Asset light companies Client controlled seismic projects (held acreage): Proprietary surveys converted to Multi-Client Groupshoots 4D seismic Asset heavy companies

5 Building a Multi-Client company The asset light MC model is superior in almost any point in the cycle Instantaneous adaption to market conditions Focus on sale and cash to manage the cycle Partnering options for de-risking and technology access Size, volume and geographical spread is critical for Multi Client library Organic growth alone is not sufficient to reach critical mass Down cycles offer opportunities to take over distressed libraries

6 Spectrum growth over the past 5 years 2011 Library acquisition was a company changer Increased cash flow allowed increased organic growth MUSD MUSD Net Revenue EBITDA 2014 Net revenues MUSD EBITDA MUSD 149

7 Payback profile of 2011 library acquisition Payback profile - acquisition of CGG MC2D library in 2011 Comments MUSD Spectrum recouped its investment in the acquired CGG library in less than 12 months 0.3x x x 1.1x 0.9x x 1.9x 1.8x 1.6x 1.7x 1.4x x 1.3x1.4x x 2.0x 1.5x 1.0x 0.5x The graph illustrates the investment and accumulated revenues for the acquired library from CGG (figures as of 4Q 2014) As of 4Q14 Spectrum has had accumulated sales of USD 84 million from the acquired library (2.1x investment) 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0.0x Accum. sales-to-investment Accumulated sales Investment -0.5x -1.0x Strong cash flow facilitated Spectrum s organic growth

8 2015 Library Acquisition

9 Investment rationale 1 Strategic companychanger Market leader in MC2D Strengthen positioning in key offshore O&G basins Library size allows creative deals 2 Attractive economics 2x sales/investments ratio achievable Limited incremental OPEX Low cost bank financing 3 Risk diversification Lower dependence on specific areas Increased customer base

10 Improved position in Multi-Client MC2D (1) Thousand Km, 2014 MC2D MC3D Thousand Km 2, 2014 MC3D Spectrum is now world leader in MC2D 45% 39% 7% 6% 2% 1% 0% 25% 23% 21% 20% 7% 2% 1% 0% Market share (%) (1) Excluding WG MC2D (library data unknown) (2) PGS MC3D data exclude double-counting of reprocessed data and old merged data Source: Company reporting

11 Spectrum library expansion synergies

12 Strengthened position in key offshore basins Size of MC2D library Ex-Fugro MC2D library (Thousand km) ~ Other 80 Brazil Size of MC3D library Ex-Fugro MC3D library (Thousand km2) ~140 Other Brazil Netherlands USA Norway Brazil Mozambique Key offshore O&G basins Discovered offshore resources last ten years top 8 countries (Billion BOE) Australia USA Norway Australia Australia Australia USA Norway Russia Fugro s library: Coverage Limited coverage 20 Israel Total 0 Total Saudi Arabia Note: Km / km2 includes reprocessed and co-owned data Source: Fugro, Rystad

13 Library integration status Acquisition of the Fugro Multi-Client Library is successfully completed New Library builds momentum with our clients Focusing on enhancing and realizing value Taking Ownership of Sales Reprocessing and Add-On Products Combine data sets to super-volumes

14 Q2 update

15 Q Highlights Q2-15 Q2-14 Change Net Revenue MUSD 35 MUSD 45-22% EBITDA MUSD 26 MUSD 34-26% EBIT MUSD 9 (*) MUSD 10-13% * Including transaction cost of MUSD 0.9 related to the acquisition of the Fugro MC library Sales of MUSD 5 in Q2 (sales April and May) related to Former Fugro library not included in the revenue numbers The sales for the first 5 months of 2015 from the acquired library is only impacting the balance sheet, not the revenue numbers Net cash of MUSD 18 end of quarter

16 MC Library NBV & Investments Q MC investments MUSD 120 Library acquisition MUSD 108 Organic investment MUSD 12 Amortization Q %

17 Areas of High Interest Relevant Licensing activities Croatia - 2 nd round expected in 2015 Peru - round expected in 2015 Brazil - 13 th round ongoing Mexico - 1 st round ongoing Madagascar - round expected in 2015 Norway - 23 rd round in 2015 Ireland - round ongoing Australia - regular acreage release

18 Ongoing MC2D project Mexico MC2D JV Combining strengths with Schlumberger and PGS Phase 1 program of ~70,000 km broadband data 2 months ahead of competition, first mover advantage Cleanest data (no seismic interference) Fast track data available Supported by industry Fast-track data showing successful imaging of the emerging pre-salt play

19 Outlook

20 Summary & Outlook Spectrum has grown into the world s largest marine MC2D player The asset light MC model is instantly adaptable to changing oil price trends MC investment of MUSD full year MUSD 115 library acquisition MUSD organic projects Focus on sales, monetizing the new library Extensive pipeline of new projects Initiation will depend on pre-funding levels

21 Q & A