Magseis ASA
Q3 2018
30th October 2018
Transformative technology deal
Magseis ASA Q3 2018 30 th October 2018 Transformative technology - - PowerPoint PPT Presentation
Magseis ASA Q3 2018 30 th October 2018 Transformative technology deal Disclaimer This presentation (the Presentation ") has been prepared by Magseis ASA (the The Company makes no representation or warranty, expressed or implied, as to
Magseis ASA
Q3 2018
30th October 2018
Transformative technology deal
This presentation (the “Presentation") has been prepared by Magseis ASA (the “Company” or “Magseis”). 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
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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: MagseisAGENDA
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Financials Market development and operations Summary Introduction
Highlights Q3 2018
Financial Performance Operational Performance Technology Further growth, backlog and outlook
and issue revenue guidance for 2019 of USD 190m-210m
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Develop and operate proprietary technology to be applied in seismic acquisition operations Headquarter in Oslo, Norway with
Houston ~200 employees of which ~50%
Geophysical company founded in 2009 with first operation in 2013 OSE:MSEIS Market Cap USD~160 million Revenue Guidance 2018: USD 100m Node Pool: 14 000 MASS I
Corporate snapshot
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Source: Magseis$
AGENDA
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Introduction Market development and operations Summary Financials
Q3 2018 results - Comprehensive income
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Source: Magseis In USD thousands Q3 2018 (unaudited)%
Q3 2017 (unaudited)%
YTD2018 (unaudited) % FY 2017 (audited%
Revenue 15 996 28 650 60 279 73 877 Cost of sales 11 084 11 590 30 890 35 701 Research and development 581 494 1 812 2 002 SG&A and other expenses 4 862 2 643 12 545 10 039 EBITDA
15 032 24.9 26 136 35.4 Depreciation 3 940 4 962 11 505 15 148 Amortisation 191 116 573 463 Impairment 233 EBIT
2 954 4.9 10 292 13.9 Net finance costs 290
1 792 397 EBT
10 154 1 162 9 895 Tax 997 493 1 984 3 199 Net income
6 696 9.1 Total comprehensive income
9 660
6 696
in South East Asia for permit issues
mobilisation in South East Asia
East Asia
Q3 2018 results - Balance sheet
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Source: Magseissystems
Innovation Norway of USD 6.3m @ 4.15% interest (split non-current USD 4.4m and USD 1.9m current)
USD 7.3m (contingent liability)
In USD thousands YTD 2018 (unaudited) YTD 2017 (unaudited) YE 2017 (audited)Equipment and other intangibles
101 140 64 234 74 416
Multi-client library Cash and cash equivalents
33 504 45 427 29 776
Trade receivables
15 743 16 394 9 137
Stock (fuel and batteries)
3 720 908 1 752
Other current assets
5 370 2 964 8 469
TOTAL ASSETS
159 477 129 927 123,549
Share capital
545 438 438
Share premium
178 508 141 486 141,486
Retained earnings and other reserves
TOTAL EQUITY
131 292 104 775 95 040
Obligation under finance lease
181
Other non-current financial liabilities
11 771 13 482 13 049
TOTAL NON-CURRENT LIABILITIES
11 771 13 662 13 049
Trade payables
6 408 4 965 6 010
Current tax liability
889 721 1 111
Other current liabilities
9 116 5 804 8 338
TOTAL CURRENT LIABILITIES
16 414 11 490 15 460
TOTAL LIABILITIES
28 185 25 152 28 509
TOTAL EQUITY AND LIABILITIES
159 477 129 927 123 549
Q3 2018 results - Cash flow
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Source: Magseisexpected
Earnings before tax
10 154 1 162 9 895 Depr, Amor, Impair
(non cash-effect)4 012 4 959 11 727 15 405 Depr, Amor, Impair
(cash-effect)Net working capital adjustments 9 165 7 128
1 708 Net cash flow from operating activities 7 609 21 185 4 609 24 157 Net cash flow from investing activities
Net cash flow from financing activities
34 171 31 201 Net change in cash and cash equivalents
11 770 3 728 10 801 Cash balance at the beginning of the period 36 168 33 657 29 776 18 974 Cash balance at period end 33 504 45 427 33 504 29 776
In USD thousands Q3 2018 (unaudited) Q3 2017 (unaudited) YTD 2018 (unaudited) FY 2017 (audited)KE KEY FIGU GURES
Q3 Q3 2018
Source: MagseisREVENUE
EBITDA
NET PROFIT
CASH BALANCE
$ MILLION $ MILLION $ MILLION $ MILLION $ MILLION
13.9
EBITDA
Q3 2017
28.7
REVENUE
Q3 2017
EBITDA
Q3 2018
REVENUE
Q3 2018
16.0
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KEY FIGURES
YTD Q3 Q3 2018
Source: MagseisREVENUE
EBITDA
NET PROFIT
CASH BALANCE
$ MILLION $ MILLION $ MILLION $ MILLION $ MILLION
30.7
EBITDA
YTD 2017
69.1
REVENUE
YTD 2017
15.0
EBITDA
YTD 2018
REVENUE
YTD 2018
60.3
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AGENDA
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Financials Introduction Summary Market development and operations
6 year seismic program BGP Offshore won, sanctioned by ADNOC
Sea with BGP with a rock solid track record with consistent data recovery rate above 99%
and establish its technology division in addition to data acquisition
Transformative technology deal with BGP Offshore
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and then had 1 month transit and preparation for the commencement of the extension survey
last until November
to permit issues. Project now commenced with some timing risk on revenues
Q3 2018 – three operations in the making
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Three parallel operations
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ATHENE Crew 1 MASS Modular Crew 3 MASS Modular Crew 2
Source: MagseisMarine Autonomous Seismic System
Strong Market 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: MagseisAGENDA
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Financials Market development and operations Introduction Summary
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Transformative BGP deal Capitalise on technological excellence Demand driven market in 2019