M agseis ASA Q1 2016 25 M ay 2016 Highlights first quarter 2016 - - PowerPoint PPT Presentation

M agseis ASA Q1 2016

25 M ay 2016

• Positive market view - we expect a pipeline of 2017/ 2018 tenders with substantial scope
• New equity and debt financing in place totalling USD 16M
• Preparations for Crew #2 underway - growth strategy to be pursued on back of sufficient backlog

visibility

Highlights first quarter 2016

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• Further improved performance on high-spec M alaysian survey
• Introduction of a number technical advances, including a record number of G2 nodes in operation
• First two-vessel operation conducted – enabling rolling spread
• Awarded largest ever contract by BGP Arabia for OBS acquisition for Saudi Aramco in the Red Sea
• Strong order backlog USD 62M as of end Q1 2016 >USD 130M incl. extension
• Red Sea contract following the M alaysian survey in July this year, we are now well positioned as a

leading international provider of OBS

• Aiming to drive industry development as cost-reduction allows for expansion of OBS application

Operational and technical milestones achieved Improved performance expected with Aramco contract Industry leading position in Ocean Bottom Seismic Positioned for growth when visibility improves further

KEY F Y FIGURES Q1

Q1 2016

18.1

REVENUE

1.6

EBITDA

• 3.9

NET INCOME

15.2

CASH BALANCE

$ MILLION $ MILLION $ MILLION $ MILLION $ MILLION

18.1 5.5 ( -4.2 ) 1.6

REVENUE

Q1 2015

REVENUE

Q4 2015

EBITDA

Q4 2015

EBITDA

Q1 2016

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This is M agseis

OCEAN BOTTOM SEISM IC (OBS) PRODUCT DEVELOPM ENT & M ANUFACTURING OSLO - BERGEN - STOCKHOLM SINGAPORE - BRAZIL

• Industry leading ocean bottom seismic company
• Start of operations Oct 2013
• One vessel in operations
• 77 employees
• Listed on Oslo Axess

Ticker Shares outstanding M arket cap (NOKm) Equity Ratio – Q1 16 M SEIS 29.818,014 403 65.7%

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Seismic acquisition

ONE core proprietary technology -> M ultiple applications M iniaturised node sensors Handling system

Cable deployment ROV deployment

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M arine Autonomous Seismic System (M ASS)

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Now established as a leading OBS provider

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Qualified (2013):

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• Technology well established (G2 in production)
• Have completed >580 sq.km. of high-end

OBS acquisition

• M ore than 80 000 4-component sensor capsules

deployed

• Building reputation for very high-quality data
• Established as the lowest-cost supplier

in the industry

Qualified (2015): Ongoing (2016):

Petronas - Bokor

Operational challenges

• Complex survey design
• Lots of infrastructure and high field activity
• First survey in SE Asia and pleased client
• First two-vessel operation with a ‘rolling’ spread
• Our next generation G2 node electronics was introduced
• A record number of sensors were deployed

Well positioned for the mobilisation of the Red Sea survey for Saudi Aramco The Bokor field is a structurally complex field with gas clouds and strong lateral velocity changes

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Red Sea – S-78 Survey area

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• M agseis technology allowing uniform node technology (M ASS G2 nodes) to

be deployed across the whole survey area, covering all water depths

• Awarded to M agseis by BGP due to our proven ability

to operate in the area

• Joint operation plan together with BGP
• M agseis to deploy nodes in deep water
• BGP will deploy M ASS nodes in the shallow regions
• BGP will conduct all the shooting

First quarter 2016 results

• Comprehensive income

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• Revenue
• USD 16.3M from Petronas survey,

USD 1.8M from M ulti-client (Barents sea)

• Cost of sales
• Two vessel operation
• Increase in area cost
• Research and development
• Capitalised all expenses related to the

Deep water R&D project USD 352K

• Depreciation
• M ore equipment in use as of Q1 2016
• Amortisation
• USD 877K to multi-client (Barents Sea),

USD 113K to intangible assets

• Tax
• USD 833K relates to withholding tax M alaysia

for Q1 2016 cost settlement All figures in USD thousands

First quarter 2016 results

• Balance sheet at 31 M arch

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• Equipment and intangibles
• Increase seismic equipment of USD 2.9M
• Trade receivables
• Petronas USD 7.3M
• BGP USD 0.5M
• Dialogue USD 0.2M
• Other current assets
• Prepayments USD 1.9M
• Stock USD 1.3M
• Equity
• Equity rate of 65.7%
• Non-current liabilities
• Increase of BGP funding USD 4.0M
• Shell agreement increase of USD 1.0M
• Current liabilities
• Vessel operations USD 4.7M
• Employees USD 1.0M

All figures in USD thousands

First quarter 2016 results

• Cash flow

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• Cash from investments
• Relates to increased inventory of nodes (USD 2.0M )
• Capitalised expenses related to other intangibles including

the Deep Water R&D project (USD 0.3M )

• Cash flow from financing
• Increase of BGP funding USD 4.0M
• Shell Cooperation agreement increase USD 1.0M

All figures in USD thousands

250 500 1000 2000 3000

Competing cable systems Competing ROV systems M ASS cable + ROV deployment

• M agseis covers the entire water depth range

with M ASS technology

• Joint development project with Shell

provides step change in efficiency for deep water 4D work

• Several projects in pipeline where M agseis’

deep-water capabilities will be a unique advantage

COST-EFFICIENT ACQUISITION from 0-3000m

M AGSEIS 13

Current backlog

• Awarded Saudi Aramco’s S-78 together with BGP

–

9 months duration

–

12 months extension option

• Several large tenders in the pipeline for 2017/ 2018 start
• Significant industry interest for OBS and M ASS technology

Firm Lead Y ard/ transit

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Summary and outlook

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• Strong backlog visibility 12 – 24 months
• Significantly improved financial position for 2016-2017
• Positive market view for 2017/ 2018
• Well prepared for the Red Sea survey
• Key conditions for growth in place

At the forefront of seabed seismic technology

M agseis ASA

Q & A