M agseis ASA Q1 2016 25 M ay 2016
Highlights first quarter 2016 • Further improved performance on high-spec M alaysian survey Operational and technical • Introduction of a number technical advances, including a record number of G2 nodes in operation milestones achieved • First two-vessel operation conducted – enabling rolling spread Improved performance • Awarded largest ever contract by BGP Arabia for OBS acquisition for Saudi Aramco in the Red Sea expected with Aramco • Strong order backlog USD 62M as of end Q1 2016 >USD 130M incl. extension contract • Red Sea contract following the M alaysian survey in July this year, we are now well positioned as a Industry leading position in leading international provider of OBS Ocean Bottom Seismic • Aiming to drive industry development as cost-reduction allows for expansion of OBS application • Positive market view - we expect a pipeline of 2017/ 2018 tenders with substantial scope Positioned for growth when • New equity and debt financing in place totalling USD 16M visibility improves further • Preparations for Crew #2 underway - growth strategy to be pursued on back of sufficient backlog visibility 2
Y FIGURES Q1 Q1 2016 KEY F $ MILLION 18.1 REVENUE EBITDA 5.5 18.1 1.6 $ MILLION $ MILLION 1.6 ( -4.2 ) NET INCOME CASH BALANCE -3.9 15.2 EBITDA REVENUE REVENUE EBITDA Q1 Q1 Q4 Q4 2015 2016 2015 2015 $ MILLION $ MILLION 3 Source: M agseis
This is M agseis OSLO - BERGEN - STOCKHOLM OCEAN BOTTOM SEISM IC (OBS) PRODUCT DEVELOPM ENT SINGAPORE - BRAZIL & M ANUFACTURING • Industry leading ocean bottom seismic company Ticker M SEIS • Start of operations Oct 2013 Shares outstanding 29.818,014 • One vessel in operations M arket cap (NOKm) 403 • 77 employees Equity Ratio – Q1 16 65.7% • Listed on Oslo Axess 4
Seismic acquisition M iniaturised Handling system node sensors Cable deployment ROV deployment 5 ONE core proprietary technology -> M ultiple applications
M arine Autonomous Seismic System (M ASS) 6
Now established as a leading OBS provider Qualified (2013): • Technology well established (G2 in production) • Have completed >580 sq.km. of high-end OBS acquisition Qualified (2015): • M ore than 80 000 4-component sensor capsules deployed • Building reputation for very high-quality data Ongoing (2016): • Established as the lowest-cost supplier in the industry 7 7 Source: M agseis operating close to FPSO at Captain Field
Petronas - Bokor The Bokor field is a structurally complex field with gas clouds and strong lateral velocity changes 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 8
Red Sea – S-78 Survey area • 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 9
First quarter 2016 results - Comprehensive income • Revenue Q1 Q1 Full Year All figures in USD thousands 2016 2015 2015 • 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 10
First quarter 2016 results - Balance sheet at 31 M arch • Equipment and intangibles All figures in USD thousands 2016 2015 • 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 11
First quarter 2016 results - Cash flow • Cash from investments All figures in USD thousands Q1 2016 Q1 2015 • 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 12
COST-EFFICIENT ACQUISITION from 0-3000m Competing Water Depth M AGSEIS in metres cable systems 0 • M agseis covers the entire water depth range with M ASS technology 250 • Joint development project with Shell M ASS 500 provides step change in efficiency for deep cable + water 4D work Competing ROV ROV systems deployment 1000 • Several projects in pipeline where M agseis’ deep-water capabilities will be a unique 2000 advantage 3000 13 Source: M agseis
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 11 Source: M agseis
Summary and outlook • 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 15
At the forefront of seabed seismic technology Q & A M agseis ASA
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