Strictly private & confidential Magseis AS: Second Quarter 2014 CEO: Ivar Gimse CFO: Mikkel Ektvedt 29 August 2014
Disclaimer This Presentation of Magseis AS (the “Company”) has been prepared solely for information purposes. This Presentation may not be distributed, reproduced or used without the consent of the Company. The information contained herein does not purport to contain all information concerning the Company. No party has made any kind of independent verification of any of the information set forth herein, including any statements with respect to projections or prospects of the business or the assumptions on which such statements are based. The Company nor any of its subsidiaries make any representations or warranty, express or implied, as to the accuracy, reliability or completeness of this Presentation or of the information contained herein and shall have no liability for the information contained in, or any omissions from, this Presentation. Included in this Presentation are various “forward - looking statements”, including statements regarding the intent, opinion, beli ef or current expectations of the Company or its management. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forward-looking statements, including, among others, risks or uncertainties associated with the Company’s business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors, including lack of operating history. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document. No information contained herein constitutes, or shall be relied upon as constituting, any advice relating to the future performance of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this Presentation. Source: Magseis 2
Content 1. Highlights 2. Operational and Market update 3. Financials 4. Summary and Q&A 3
This is Magseis • Industry-leading seabed seismic Ticker: MSEIS company Shares outstanding: 27,162,561 • One vessel in operations and working for Statoil and Talisman Market cap (NOKm) 800 • 75 employees Book Equity – Q2 14 417.9 (NOKm) • ~NOK 500m in equity raised Net Debt – Q2 14 (194.1) 1 • Listed on Oslo Axess (NOKm) Note: 1) Excludes Financial Lease for winch package 4 Source: Magseis
Highlights Operational Financial results Q2 2014 • Completed Albatross and Snøhvit survey • Revenues of NOK 98 million • Production on Oseberg and Gullfaks surveys well • EBITDA of NOK 16.9 million (EBITDA adjusted for underway non-recurring items: NOK 21.2 million) • Successfully completed new equity issues of • EBIT of NOK 4.2 million (EBIT adjusted for non NOK 144 million to finance further expansion recurring items: NOK 9.5 million) • Listed Magseis ASA on Oslo Axess on 6 June • Net Income of NOK 1.3 million Finalist ONS 2014 Innovation Award Source: Magseis 5
Content 1. Highlights 2. Operational and Market update 3. Financials 4. Summary and Q&A 6
Good operational performance on Oseberg and Gullfaks • Mobilized for Oseberg project on 16 May • Work now completed on Oseberg • In the process of finalising Gullfaks • Expected completion by mid-September • Efficiency: – Shooting speeds and line changes have improved – Average deployment / recovery speed of cable has increased but remains short of target. Significant uplift expected with improved backdeck handling machine in Oct – Technical downtime in-line with expectations Source: PTIL, Magseis 7
Athene upgrade ongoing Artemis Athene • Target upgrade to 150km of cable by November 2014 (with 50m sensor spacing) • 1,500 additional sensors in production (G2) ready by end-Q4 14 – Significantly longer battery life – Significantly faster download speeds – Significantly reduced cost • Improved backdeck handling equipment to be installed during October – Target a doubling of cable deployment / recovery speeds • Associated additional handling equipment to be installed by end of November Source: Magseis 8
Crew 2 status – Planning well underway • Target vessel identified – Capable of carrying > 300km of cable – Efficient layout - Limited conversion work needed • Traction and pulling line system developed to facilitate operations down to 3,000m water depth – Will be the only cable-based OBS crew able to work in ultra-deep waters – Significant competitive advantage with respect to ROV-based node crews • Target >6,000 sensor capacity – G2 sensors with significantly improved battery life, downloading speeds and cost • Engineering and project planning ongoing – Target start of operations during Q2/Q3 2015 – Closely monitoring developments in backlog and market sentiment prior to making final investment decision • This crew will enable a step-change in OBS acquisition costs and open up entirely new markets 9
Current backlog status • Firm backlog • Gullfaks and Oseberg surveys ongoing under Statoil Frame Work Agreement • Progress has been very good so far and with less than expected timeshare/weather – project may finish by mid September • New Contract: Expected duriation of 1-2 months, starting mid September-14 • Working on several leads to secure further work for Q4 14 and 2015 Source: Magseis 10
Broader market outlook 2014 record OBS year 2015 likely to be lower activity due to Statoil cost focus Significant MC survey potential A lot of OBS work in progress/coming out Significant percentage is Transition Zone Big OBS market Very significant ultra- Many large programs deep potential coming out in 2015 MC surveys already and beyond rolling Big OBS markets Very significant ultra-deep potential • 2015 looks to be more challenging than 2014 in the North Sea • However, mid-/long-term prospects continue to develop favorably • Focus next 12 months: – Continued development of North Sea position (MC strategy will be important) – Establish marketing presence in GoM, West Africa and Middle East Source: Magseis 11
Content 1. Highlights 2. Operational and Market update 3. Financials 4. Summary and Q&A 12
Q2 2014 results - Comprehensive income All figures in NOK thousands Q2 14 Q2 13 YTD 14 YTD 13 • Revenue – Significant improvement over Q1 14 but still Revenue 98,240 0 182,653 0 below our expectations due to complex Cost of sales 62,189 117,989 0 nature of Gullfaks field 0 • Cost of sales Research and development 2,151 834 3,490 1,271 – Includes NOK 2.5m accrual for vessel SG&A and other expenses 16,984 10,883 31,828 13,771 maintenance (of which only 0.9m related to Q2 14) EBITDA 16,916 -11,717 29,346 -15,042 • R&D Depreciation 11,299 269 22,500 516 Impairment 1,422 0 1,422 0 – Capitalised NOK 2.7m in Q2 2014 and a total of NOK 4m in YTD 2014. EBIT 4,195 -11,986 5,424 -15,558 – Expensed R&D impacted by deep water Net interest and foreign currency gain/loss -414 -120 -1,151 -1,702 project fjord test Other finance cost 3,286 0 3,286 0 • SG&A Net finance costs 2,872 -120 2,135 -1,702 – Includes share options cost of NOK 1.6m in EBT 1,322 -11,866 3,289 -13,856 Q2 and NOK 3.3m in YTD – Equipment write off, all cost taken in June Tax 0 0 0 0 2014 Net income 1,322 -11,866 3,289 -13,856 • Other finance cost – Earnings per share 0.05 -0.56 0.14 -0.66 NOK 3.3m in fair value adj related to Diluted earnings per share 0.05 -0.56 0.14 -0.66 conversion of loan 13
Q2 2014 results - Normalised earnings Q2 2014 YTD 2014 • Maintenance days Actual Adjust- Normalised Actual Adjust- Normalised All figures in NOK thousands earnings -ments earnnings earnings -ments earnnings – Cost relating to Q4 13 and Q1 14 were recorded in Q2 14 EBITDA 16,916 4,287 21,204 29,346 3,387 32,733 • Costs relating to IPO and Adjustment for maintenance days 1,800 900 Adjustment for IPO and conv loan costs 2,487 2,487 convertible loan – Includes OSE fee, some bank EBIT 4,195 5,354 9,549 5,424 3,743 9,167 fees, legal fees etc. Adjustment EBITDA 4,287 3,387 • Equipment write off Adjustment for impairment 1,067 356 – All cost related to equipment EBT (profit before tax) 1,322 8,641 9,963 3,289 7,029 10,318 write off recorded in Q2 Adjustment EBIT 5,354 3,743 • Convertible loan Adjustment fair value adj conversion loss 3,286 3,286 – The conversion trigged a loss due to fair value adjustment. Equals difference between share value at conversion date (NOK 27.00) and conversion price (NOK 23.75) times no. of shares issued 14
Recommend
More recommend
