Fourth quarter 2019
Axxis Geo Solutions
Lee Parker, CEO and Svein Knudsen, CFO 26 February 2020
Fourth quarter 2019 Axxis Geo Solutions Lee Parker, CEO and Svein - - PowerPoint PPT Presentation
Fourth quarter 2019 Axxis Geo Solutions Lee Parker, CEO and Svein Knudsen, CFO 26 February 2020 Disclaimer The information in this presentation has been prepared by Axxis Geo Solutions ASA (AGS or the Company). By attending the
Fourth quarter 2019
Axxis Geo Solutions
Lee Parker, CEO and Svein Knudsen, CFO 26 February 2020
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Disclaimer
presentation slides, you agree to be bound by the following limitations and provisions:
matters relevant of an assessment of an investment in the company. The securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities of the Company have not been, and will not be, registered under the U.S. Securities Act.
and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any advisor or any such persons’ officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation. The information herein is subject to change, completion, supplements or amendments without notice.
looking statements involve risk and uncertainty because they reflect the Company’s current expectations and assumptions as to future events and circumstances that may not prove accurate. It should be understood that subsequent developments may affect the information contained in this document, which neither the Company nor its advisors are under an obligation to update, revise or affirm.
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legal, business, investment and tax advice.
the investment. Investors should carefully review the summary of risk factors set out in the following slides before making any investment decision.
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Agenda
1.About AGS 2.Highlights 3.Financials 4.Operations and outlook
Axxis Geo Solutions in brief
seismic service company
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Asset light model Operational excellence Core competence & proprietary technology
AxxisGeo Solutions’ competitive edge in the OBS market
Flexible and cost efficient asset light leasing model
Vessels ▪ Lease nodes based upon demand ▪ Multiple node suppliers can be used ▪ Enabling use of latest technology ▪ Possible to adjust number of crews ▪ Flexibility proven in the North Sea ▪ Using crews with node handling experience Nodes Crews ▪ Flexibility on vessel type and capacity ▪ Adjust fleet capacity to survey backlog ▪ Avoid seasonal utilization discrepancies
Cost base closely linked to utilization and activity level
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market
OBS market
increase
towed streamer seismic
O&G companies demands high resolution data
USDm
Source: Rystad (June 2018), Fugro/Seabed Geosolutions
500 1 000 1 500 2 000 2 500 2014 2015 2016 2017 2018 2019 2020 2021 2022 Shallow and midwater market (<300m) Total OBS market
Strong market forces driving OBS market growth
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Agenda
1.About AGS 2.Highlights 3.Financials 4.Operations and outlook
Q4 Highlights
Contract signature delay
for the Company’s Brazil campaign
Suez
30 December 2019
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Neptune Naiad crew
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Agenda
1.About AGS 2.Highlights 3.Financials 4.Operations and outlook
AGS reporting going forward
Segment reporting (internal reporting)
segment reporting
IFRS reporting
related to multi-client projects are postponed until projects are ready to be delivered to customers
including data processing
affected
interim reports
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Fourth quarter segment financial review
35 million and pre-funding from multi-client program at Utsira of NOK 12 million
Malta for the Egypt project
goodwill of NOK 11 million and lost equipment of NOK 5.8 million
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Fourth quarter Segment P&L
D&A = Depreciations and Amortization
In NOK million
Revenue EBITDA and EBIT
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251 327 100 48 50 100 150 200 250 300 350 Q1 19 Q2 19 Q3 19 Q4 19
144 69
134
100 200 Q1 19 Q2 19 Q3 19 Q4 19 EBITDA EBIT
Financials segment overview
Sequential performance
both contract and multi-client activity
goodwill and multi-client library
by quarter
In NOK million In NOK million
107 million, write down of NOK 308 million
2020
NOK 35 million, Brazil revenue NOK 16 million
Assets position - Segment reporting
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158 240 459 249 135 146 155 150 43 21 26 235 342 124 286 571 749 765 685
100 200 300 400 500 600 700 800 31.03.19 30.06.19 30.09.19 31.12.19 Multi-client library PP&E Other non-current assets Current assets
PP&E = Vessels, equipment and maintenance
Financing and segment financial position
In NOK million
Feb 2020
72 million
Equity and liabilities - Segment reporting
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128 229 225 31 15 12 443 505 527 654
100 200 300 400 500 600 700 800 31.03.19 30.06.19 30.09.19 31.12.19 Equity Non-current liabilities Current liabilities
Financing and segment financial position cont.
In NOK million
cash flow
amounting to USD 4 million
all larger suppliers of which USD 15 million is expected to be converted to long-term debt
agreements
Difference between expected and actual change in working capital
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Project delay mitigation measures
5 10 15 20 40 60 80 100 120
USD million Days
Expected Actual Delta
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Agenda
1.About AGS 2.Highlights 3.Financials 4.Operations and outlook
Supporting customers as a one-stop-shop partner
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Mobilized to Egypt, Gulf of Suez Q4-Q1 project
Supporting customers as a one-stop-shop partner
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Km2 of acquired data per day 12-18km2 2018 2019 2020 8km2 14-20km2 Utsira 3D OBN productivity
receiver spread per day Improvements since 2018
2018
Step-change in productivity
2019 2020 2021 Brazil
North Sea
North Sea
Egypt
Q4 Q1 Q3 Q1 Q4 Q2 Committed Tenders Pipeline GOM India
West Africa
~ USD 38 million backlog as of Q4 and ~USD 900 million tenders / pipeline 2020 / 2021
Backlog and outlook
Egypt Egypt Committed
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North Sea
Middle East / Asia
North Sea
Source Vessel / PRM / VSP OBN Projects
Lee Parker, CEO and Svein Knudsen, CFO
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US Office 14511 Old Katy Road Suite 150 Houston, TX 77079 United States +1 281 810 2550 Norway Office Strandveien 50 1366 Lysaker Norway +47 480 95 555
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