M agseis ASA Q2 2018 16 th August 2018 Expanding operational - - PowerPoint PPT Presentation

m agseis asa
SMART_READER_LITE
LIVE PREVIEW

M agseis ASA Q2 2018 16 th August 2018 Expanding operational - - PowerPoint PPT Presentation

M agseis ASA Q2 2018 16 th August 2018 Expanding operational footprint Disclaimer This presentation (the Presentation ") has been prepared by M agseis ASA (the The Company makes no representation or warranty, expressed or implied, as to


slide-1
SLIDE 1

M agseis ASA

Q2 2018

16th August 2018

Expanding operational footprint

slide-2
SLIDE 2

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

  • perates.

Forward-looking statements concern future circumstances and results and

  • ther

statements that are not historical facts, sometimes identified by the words “aims”, “anticipates”, “believes”, “estimates”, “expects”, “foresees”, “ intends”, “plans”, “ predicts”, “projects”, “targets”, and similar

  • expressions. Any forward-looking statements and other information contained in this

Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely

  • pinions

and forecasts based

  • n

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

  • Act. This Presentation should not form the basis of any investment decision.

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

  • f the Company since such date.

Disclaimer

Source: M agseis
slide-3
SLIDE 3

AGENDA

3

Financials M arket development and operations Summary Introduction

slide-4
SLIDE 4

Highlights Q2 2018

Financial Performance Operational Performance Focus on more efficient and cost effective solutions Further growth, backlog and outlook

  • Three contract awards and backlog at USD 65m
  • Continued guidance of expected revenue for 2018 of USD 100m
  • Revenue of USD 19.7m and EBITDA of USD 5.2m
  • Net cash flow from operations USD 3.2m
  • Sufficient funding for node CAPEX program
  • Launching M ASS III node, 150 days battery life with 40% CAPEX reduction
  • Extended Athene on flexible charter at reduced rates
  • No new vessel on long-term charter - cost base flexibility
  • Successfully scaling from one to three crews in operation
  • Interchangeable node covering cable, ROV & rope deployment
Source: M agseis

4

slide-5
SLIDE 5

Develop and operate proprietary technology to be applied in seismic acquisition operations Headquarter in Oslo, Norway with

  • ffices in Stockholm, Singapore and

Houston 168 employees of which ~45%

  • ffshore

Geophysical company founded in 2009 with first operation in 2013 OSE:M SEIS M CAP USD~170 million Transferred to main list in JUN 18

Corporate snapshot

5

Source: M agseis

$

slide-6
SLIDE 6

AGENDA

6

Introduction M arket development and operations Summary Financials

slide-7
SLIDE 7

Q2 2018 results - Comprehensive income

7

Source: M agseis

In 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

  • 314

4 151 6 114 9 895 Tax 227 838 987 3 199 Net income

  • 540 -2.7

3 313 17.1 5 127 11.6 6 696 9.1 Currency translation differences Total comprehensive income

  • 540

3 313 5 127 6 696

  • Revenue
  • M ainly related to Saudi Arabia
  • Cost of sales & SG&A
  • Scaling up operations – 3 parallel operations in Q318
  • Scaling up sales & administration
  • Depreciation
  • Increased node pool to 14 000
  • Finance
  • Unrealized exchange loss of USD 1,1m due to weakening NOK vs

USD in Q218

  • Tax
  • Withholding tax in Saudi Arabia – net of USD 600k received from

previous survey

slide-8
SLIDE 8

Second quarter 2018 results - Balance sheet

8

Source: M agseis
  • Trade receivables comprising BGP/Saudi Aramco
  • 1 overdue invoice end June paid in July
  • Other current assets
  • Prepayments and deposits of USD 3.5m
  • Equity ratio of 84.1%
  • In compliance with all covenants
  • Liabilities
  • Senior debt from Export Credit Norway and

Innovation Norway of USD 7.0m @ 4.15% interest (split non-current USD 5.1m and USD 1.9m current)

  • Shell Deep Water R&D funding: USD 7.3m (contingent

liability)

  • Received non-binding indicative term-sheet for funding of

new nodes and working capital In USD thousands

YTD 2018 (unaudited) YTD 2017 (audited) YE 2017

Equipment 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 ASSETS

163 229 121 023 123 549

Share capital

545 438 438

Share premium

178 508 141 506 141 486

Retained earnings and other reserves

  • 41 828
  • 46 875
  • 46 884
TOTAL EQUITY

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 LIABILITIES

12 447 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 LIABILITIES

13 557 11 832 15 460

TOTAL LIABILITIES

26 003 25 955 28 509

TOTAL EQUITY AND LIABILITIES

163 229 121 023 123 549

slide-9
SLIDE 9

Second quarter 2018 results - Cash flow

9

Source: M agseis
  • Cash flow from operations
  • Positive cash flow from operations; overdue

trade receivables end June paid in July

  • Cash flow from investments
  • USD 11m in new CAPEX for new nodes

according to growth plan

  • Cash from financing
  • Equity issue in FEB 2018 sufficient to finalise

CAPEX program for 10 000 new nodes

  • Cash position
  • Robust cash position of USD 36.2m

Earnings before tax

  • 314

4 151 6 114 9 895 Depreciation & Amortization 3 493 2 044 7 012 12 555 Net working capital adjustments 64

  • 15 677
  • 16 125

1 708 Net cash flow from operating activities 3 244

  • 9 482
  • 3 000

24 157 Net cash flow from investing activities

  • 10 996
  • 8 827
  • 25 848
  • 44 557

Net cash flow from financing activities

  • 676
  • 2 229

35 240 31 201 Net change in cash and cash equivalents

  • 8 429
  • 20 538

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)
slide-10
SLIDE 10

Transfer to Oslo Børs

10

Source: M agseis

On 1st J une 2018, M agseis ASA transferred its listing of shares to Oslo Børs (Oslo Stock Exchange). This will bolster the company’s exposure to capital markets and investors globally

slide-11
SLIDE 11

KEY F Y FIGURES Q2

Q2 2018

Source: M agseis

19.7

REVENUE

5.2

EBITDA

  • 0.5

NET PROFIT

36.2

CASH BALANCE

$ MILLION $ MILLION $ MILLION $ MILLION $ MILLION

8.4

EBITDA

Q2 2017

19.4

REVENUE

Q2 2017

5.2

EBITDA

Q2 2018

REVENUE

Q2 2018

19.7

11

slide-12
SLIDE 12

AGENDA

12

Financials Introduction Summary M arket development and operations

slide-13
SLIDE 13 Source: M agseis
  • The technical performance of both the Artemis

Athene and our M ASS M odular operations continue to impress with more than 99,7% technical uptime during Q218

  • One ROV based 4D monitor operation conducted in

the North Sea, again proving the versatility of our M ASS M odular system

  • Recruitment and training of crew and support staff in

preparation for three parallel operations in Q318

  • Two fully robotised M ASS M odular systems readied in

preparation for operation of M ASS nodes in addition to the nodes already in operation in the Red Sea

Q2 2018 – Preparing for increased activity

13

slide-14
SLIDE 14

Three parallel operations

14

  • Fully automated M ASS M odular Operation
  • Shallow water - Nodes on a Rope
  • Dual node deployment vessels
  • End client - M ajor oil Company
  • Operating as a subcontractor
  • Artemis Athene – Into her 24th month in the Red Sea
  • M ASS Cable operation – Very rugged seabed terrain
  • Zero to 1100 m water depth
  • Nodes on a rope in shallow water
  • M ulti vessel operation
  • End client - National Oil Company
  • Operating as a subcontractor
  • Fully automated M ASS M odular Operation
  • ROV & Source vessel chartered on project basis
  • Two M ajor Oilco’s and one National Oil Company
  • Four different surveys combined into one project
  • M agseis operating as prime contractor

ATHENE Crew 1 M ASS M odular Crew 3 M ASS M odular Crew 2

Source: M agseis

M arine Autonomous Seismic System

slide-15
SLIDE 15

M agseis takes the next step in node development

15

Up to 65 days battery lifetime Up to 150 days battery lifetime 40% reduction in cost from M ASS I

Extended battery life will transform the node

  • peration model and improve cost efficiency

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 agseis
slide-16
SLIDE 16

Strong M arket Outlook – Undersupply in 2019

16 120 000 100 000 80 000 60 000 40 000 20 000 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Node supply vs expected demand

Source: M agseis
slide-17
SLIDE 17

Growth strategy

17

Business model Key goal By 2020

  • Improve margins
  • Increase addressable

market, efficiencies &

  • perational excellence
  • Technology champion –

nodes, handling systems and source

  • M odular handling systems
  • M odular deployment

systems – cable, ROV and & rope

  • Vessels @ opportunity
  • Node pool of >30 000

nodes

  • 4-6 containerised handling

and deployment systems

  • Deliver leading source

technology

Developing M agseis into the OBS market leader

Source: M agseis
slide-18
SLIDE 18

AGENDA

18

Financials M arket development and operations Introduction Summary

slide-19
SLIDE 19

19

Improving cost efficiency Shortage of supply in 2019 Sufficient funding for node growth plan

Expanding operational footprint