Magseis ASA Q nd November 2017

Transcription

1 Magseis ASA Q nd November 2017

2 Highlights Another strong quarter Strong financial performance: Revenue of USD 28.7m and EBITDA of USD 13.9m Revised EBITDA guidance to USD 24-26m for the full year, up from USD 20m Operational Performance 2 Crews Completed the Mobile ROV operation for ConocoPhillips in the North Sea Completion of the S-78 Extension in the Red Sea expected Mid-November Continuous focus on more efficient and cost effective solution Mobile ROV more efficient than expected, strong industry interest Positive results from the Source Isolation TM test Further growth, backlog and outlook Negotiations ongoing for the extension in the Red Sea, high tender activity. New cable vessel planned for late Q start-up date 2

3 KEY FIGURES Q $ MILLION 28.7 REVENUE 28.7 $ MILLION $ MILLION EBITDA NET PROFIT 9.7 $ MILLION $ MILLION CASH BALANCE 45.4 REVENUE Q REVENUE Q EBITDA Q EBITDA Q

4 Third quarter and first nine months Key figures Profit and loss Q Q YTD 2017 YTD 2016 Revenue Cost of sales EBITDA EBIT Net profit/loss Basic earnings per share Financial position Cash Working Capital 1) Total equity Equity ratio 80.6% 56.1% Gross interest bearing debt ): Working Capital defined as Trade Receivables less Trade Payables Cash flow Net cash from operating activities Net cash from investing activities Net cash from financing activities USD 28.7 million in Revenues Revenue resulting from strong operational performance on both Red Sea and ConocoPhillips projects Very strong EBITDA performance at USD 13.9 million Total Amortisation of USD 2.6m during the quarter Closing cash position of USD 45.4 million Equity ratio 80.6% Working Capital decrease Advantageous payment terms on both Red Sea and Conoco project during Q3 Small increase in payables Full-year guidance revised Expected EBITDA for 2017 of USD million 4

5 OBS provides superior image quality - gaining market share over high-end streamer seismic Streamer Seismic Ocean Bottom Seismic (OBS) 80% Market share 20% Market share /Statoil 5

6 MASS technology - Marine Autonomous Seismic System Handling system Miniaturised node sensors Applications Highest spec sensor on the market Cable deployment MASS Cable Smart, light, robust and easy-to-handle node Superior logistics and efficiency ROV deployment MASS Modular/ROV Automated handling system Ultra MASS deep Ultra water Deep deployment Water 6

7 New, exclusive source technology agreement - Significant potential to reduce costs further Improved efficiency and data quality by new Source Isolation technology Reducing number of source vessel sail lines Increasing image quality, higher resolution and larger fold Exclusive agreement for OBS Field test conducted August 2017 Commercially available in 2018 Source Isolation 25m Conventional shooting 50m 7

8 New, exclusive source technology agreement - Significant potential to reduce costs further Nodes deployed on seabed Conventional shooting 7 sail lines Source Isolation 7 sail lines

9 Red Sea project (S-78) Operational highlights Good operational performance on S-78 Extension due to good cooperation with BGP Project completion delayed due to standby caused by other activities in the area Expected completion Mid November Q4 will be marked by redeployment of equipment, yard stay and some potential idle time between projects Revenue in Q4 estimated at USD 4-6m, potential upside if next project can commence earlier than indicated by the client 9

10 Red Sea Exploration Saudi Aramco was the first to use a deepwater rig in the Red Sea region after a 15-month seismic study in 2009 indicated the presence of natural gas. The company discovered three oil and two gas fields in (Abdelghani Henni, HartsEnergy) We continue our program to explore the shallow waters of the Red Sea, completing our largest single survey of the seabed encompassing Saudi Arabian territorial waters, Saudi Aramco said in its latest annual report (2016). (Abdelghani Henni, HartsEnergy) State-owned Saudi Aramco is hoping that innovative seismic acquisition technology will help the company to successfully explore the geologically complex sub-salt of the ecologically sensitive Red Sea. The new city called NEOM will be developed within this region The operator had said its share of Red Sea oil and gas resources had the potential to boost Saudi Arabia s reserves base by more than 30%. (Saleh Al Saleh, Upstream online) Red Sea, NASA 10

11 ConocoPhillips Eldfisk project First full scale Mobile ROV operation 3000 MASS nodes and 2 ROVs Project completed within schedule and budget Using ROV vessel and Source vessels already on charter with ConocoPhillips Delivering a high-quality 4D OBS survey to our client at a substantially lower cost Operational efficiency can be improved further by deploying more MASS nodes and faster ROVs 11

12 MASS Modular High capacity, mobile ROV operation Containerised, modular system Can be rigged up/down within 1 week on vessels of opportunity or onshore Unlimited number of nodes can be deployed Efficiency comparable to high-end cable based deployment platforms Commercially available, participating in several tenders -> Target of 2-4 ROV projects during

13 Vessel #2 preparations ongoing 6,000 MASS sensors in production, long-lead components for handling system ordered Detailed design for chosen vessel ongoing Target start of operations during Q Bidding on projects for 2018 H2 13

14 Ramping up capacity to meet market growth: MASS node inventory growing from 5,000 to 14,000 by Q Critical long-lead components for an additional 6,000 has been secured, enabling Magseis to reach 20,000 MASS nodes by YE 2018 Firmly establishing Magseis as a joint industry leader in terms of OBS node capacity Strategic focus on maximising the utilisation of our MASS nodes and Return On Capital Employed MASS Node Inventory Committed orders for complete MASS nodes Secured, critical long-lead items Planned 14

15 Strong market outlook $ MILLION USD >750 m /Arkwright/Rystad Energy/Statoil 15

16 Third quarter and first nine months Comprehensive income Revenue USD 28.7m, strong performance on the Aramco S-78 and ConoccoPhillips projects In USD thousands Q (unaudited) YTD 2017 (unaudited) Q (unaudited) YTD 2016 (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 Currency translation differences Total comprehensive income Cost of sales Full quarter of production Amortisation of capitalised mobilisation and yard costs (net effect of USD 2.6m during Q3) Aramco startet end of July in Q3 last year (capitalised cost til 1.shot) Depreciation Amortisation of capitalised mobilisation and yard cost USD 0.9m Amortisation and Impairment No impairment in the third quarter Finance Primarily interest related to GIEK and Innovation Norway Tax USD 0.5m for withholding tax in Saudi Arabia 16

17 Third quarter and first nine months Balance sheet In USD thousands YTD 2017 (unaudited) YTD 2016 (unaudited) Equipment and other intangibles Multi-client library 0 0 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/Aramco and ConocoPhillips 50% of August and 100% of September production (paid in Q4) Equity ratio of 80.6% Debt covenants at 30% Non-current liabilities Senior debt drawn down from Export Credit Norway and Innovation Norway: USD 6.4m Shell Deep Water R&D funding: USD 7.0m (contingent liability) Current tax liabilities Withholding tax Saudi Arabia Corporate tax in Singapore and Sweden Other current liabilities Current portion of long-term debt USD 3.4m TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

18 Third quarter and first nine months Cash flow In USD thousands Q (unaudited) YTD 2017 (unaudited) Q (unaudited) YTD 2016 (audited) Earnings before tax Depr, Amor,Impair,Finance, etc Net working capital adjustments Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash and cash equivalents Cash balance at the beginning of the period Cash balance at period end Cash flow from operations Decrease in working capital resulting from: Advantageous payment terms on both Red Sea and Conoco project during Q3 Small increase in payables Cash flow from investments Relates mainly to investments in nodes for vessel #2 Cash flow from financing Instalments of USD 0.7m 18

19 Magseis - well positioned for further growth in 2018 Strong Operational Performance Succesfull introduction of MASS Modular with ROV deployment for ConocoPhillips Impressive operations in challenging conditions in the Red Sea High probability for repeat business Strong Pipeline Several active tenders in key markets (capacity already tied-up on awarded projects) Strong focus on 4D and IOR Flexible Operating Platform Vessel #2 targeting large surveys with increased efficiency MASS Modular targeting 4D surveys and shallow water MASS Technology Unrivalled flexibility and capacity in the 4D market Source Isolation technology targeting 30-50% acquisition cost reduction 19

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