M agseis ASA
Pareto Oil & Offshore Conference
12th September 2018
Tightening Market
M agseis ASA Pareto Oil & Offshore Conference 12 th September - - PowerPoint PPT Presentation
M agseis ASA Pareto Oil & Offshore Conference 12 th September 2018 Tightening Market Disclaimer This presentation (the Presentation ") has been prepared by M agseis ASA (the The Company makes no representation or warranty, expressed
M agseis ASA
Pareto Oil & Offshore Conference
12th September 2018
Tightening Market
This presentation (the “ Presentation") has been prepared by M agseis ASA (the “ Company” or “ M agseis” ). The Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Company and/or industry and markets in which it
Forward-looking statements concern future circumstances and results and
statements that are not historical facts, sometimes identified by the words “aims”, “anticipates”, “believes”, “estimates”, “expects”, “foresees”, “ intends”, “plans”, “ predicts”, “projects”, “targets”, and similar
Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely
and forecasts based
the current expectations, estimates and projections of the Company or assumptions based on information currently available to the Company, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. The Company makes no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither the Company nor any of its directors, officers or employees shall be liable to you or to any other party for any losses incurred as a result of your or their use of, or reliance on, any information contained in the Presentation. This Presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities, and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. The information in this Presentation is subject to verification, completion and change. The contents of this Presentation have not been independently verified. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “ US Securities Act” ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S under the US Securities
The Presentation speaks and reflects prevailing conditions and views as of the date of this presentation. It may be subject to corrections and change at any time without notice except as required by law. The delivery of this Presentation or any further discussions of the Company with any recipient shall not, under any circumstances, create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs
Disclaimer
Source: M agseis2
M ake ocean bottom seismic cost effective and the preferred method
Headquarter in Oslo, Norway with
Houston 168 employees of which ~45%
Geophysical company founded in 2009 with first operation in 2013 OSE:M SEIS M CAP USD~150 million Transferred to main list in JUN 18
Corporate snapshot
3
Source: M agseis$
ONE core technology – multiple applications
4
0 – 50… . … … 70 - 800 … … 3 000 Water Depth Node deployer for ultradeep waters ROV deployment Infill around installations and large coverage Cable deployment for large coverage Reservoir M onitoring IOR Transition zone
M arine Autonomous Seismic System
5
REVENUE
EBITDA
NET PROFIT
CASH BALANCE
$ MILLION $ MILLION $ MILLION $ MILLION
40.5
REVENUE
1H 2017
44.3
REVENUE
1H 2018
16.7
EBITDA
1H 2017
EBITDA
1H 2018
15.6
KEY F Y FINANCIAL ALS 1H
H 20
2018 18 $ MILLION
Cash flow 1H 2018
6
Source: M agseispaid in July
according to growth plan
finalise CAPEX program for up to 10 000 new nodes
Earnings before tax
4 151 6 114 9 895 Depreciation, interest & tax 3 493 2 044 7 012 12 555 Net working capital adjustments 64
1 708 Net cash flow from operating activities 3 244
24 157 Net cash flow used in investing activities
Net cash flow from financing activities
35 240 31 201 Net change in cash and cash equivalents
6 392 10 801 Cash balance at the beginning of the period 44 597 54 195 29 776 18 974 Cash balance at period end 36 168 33 657 36 168 29 776 In USD thousands
Q2 2018 (unaudited) Q2 2017 (unaudited) YTD 2018 FY 2017 (audited)2018:Expanded from one to three operations
7
ATHENE Crew 1 M ASS M odular Crew 3 M ASS M odular Crew 2
Source: M agseisM arine Autonomous Seismic System
To date deployed/ retrieved more than 200 000 nodes with highest data recovery rate
M agseis takes the next step in node development
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Up to 65 days battery lifetime Up to 150 days battery lifetime 40% reduction in cost from M ASS I M ASS I
NEW
M ASS III
14 000 M ASS I 6 000 M ASS I Current inventory Growth 14 000 M ASS I 10 000 M ASS III
Source: M agseisExtended battery life will transform the node
Efficient OBN System - driving substantial cost reduction
9
Strong M arket Outlook – Undersupply in 2019
10 120 000 100 000 80 000 60 000 40 000 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Node supply vs expected demand
Source: M agseisM arket is tightening
11
Source: M agseis Q2 2016Value (M USD)
Key comments
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018300 250 200 150 100 50 350 6 5 4 3 2 1 7
# ITT`s
Visibility through tender offers/ pipeline
Requests for 2019 season
entering a demand driven market M iddle East, Brazil and North Sea being hot spots, where ADNOC awarded largest seismic contract ever of USD 1.6 billion (ADNOC award excluded from value of tenders) Availability of nodes seem to the trigger for awards.
Growth strategy
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Business model Key goal By 2020
backlog improvement
market, efficiencies &
nodes, handling systems and source
systems – cable, ROV and & rope
nodes
and deployment systems
technology
Developing M agseis into the OBS market leader
Source: M agseis13
Improving cost efficiency Shortage of supply in 2019 Sufficient funding for node growth plan
Appendix
14
Q2 2018 results - Comprehensive income
15
Source: M agseisIn USD thousands
Q2 2018 (unaudited)%
Q2 2017 (unaudited)%
YTD 2018%
FY 2017 (audited%
Revenue 19 718 19 399 44 283 73 877 Cost of sales 10 114 8 659 19 805 35 701 Research and development 670 514 1 231 2 002 SG&A and other expenses 3 741 1 828 7 683 10 039 EBITDA 5 193 26.3 8 398 43.3 15 563 35.1 26 136 35.4 Depreciation & Amortisation 4 196 3 688 7 948 15 611 Impairment 233 EBIT 997 5.1 4 710 24.3 7 616 17.2 10 292 13.9 Net interest and fx (gain)/ loss 1 311 560 1 502 397 Other finance cost Net finance costs 1 311 560 1 502 397 EBT
4 151 6 114 9 895 Tax 227 838 987 3 199 Net income
3 313 17.1 5 127 11.6 6 696 9.1 Currency translation differences Total comprehensive income
3 313 5 127 6 696
USD in Q218
previous survey
Second quarter 2018 results - Balance sheet
16
Source: M agseisInnovation Norway of USD 7.0m @ 4.15% interest (split non-current USD 5.1m and USD 1.9m current)
liability)
new nodes and working capital In USD thousands
YTD 2018 (unaudited) YTD 2017 (audited) YE 2017Equipment and other intangibles
94 450 59 930 74 416
M ulti-client library Cash and cash equivalents
36 168 33 657 29 776
Trade receivables
24 890 21 404 9 137
Stock (fuel and batteries)
2 616 1 318 1 752
Other current assets
5 105 4 714 8 469
TOTAL ASSETS163 229 121 023 123 549
Share capital
545 438 438
Share premium
178 508 141 506 141 486
Retained earnings and other reserves
137 225 95 069 95 040
Obligation under finance lease
447
Other non-current financial liabilities
12 447 13 675 13 049
TOTAL NON-CURRENT LIABILITIES12 447 14 122 13 049
Trade payables
5 900 4 045 6 010
Current tax liability
765 1 489 1 111
Other current liabilities
6 892 6 298 8 338
TOTAL CURRENT LIABILITIES13 557 11 832 15 460
TOTAL LIABILITIES26 003 25 955 28 509
TOTAL EQUITY AND LIABILITIES163 229 121 023 123 549