Investor Presentation • Oct 26, 2022
Investor Presentation
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Oslo, October 26, 2022
– Financial review
Improving contract rates and high MultiClient late sales
| Ξ | |
|---|---|
| $\sim$ | |
EBIT** Cash Flow from Operations
*EBITDA, when used by the Company, means EBIT excluding other charges, impairment and loss on sale of non-current assets and depreciation and amortization, as defined in Appendix of the Q3 2022 earnings release published on October 22, 2022 **Excluding impairments and Other charges.
Gottfred Langseth, EVP & CFO
This presentation must be read in conjunction with the Q3 2022 Earnings Release and the disclosures therein.
| US millions of dollars share |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Full year 2021 |
|
|---|---|---|---|---|---|---|
| (In data) , except per |
||||||
| Profit and loss numbers |
||||||
| Revenues and Other Income |
198 5 |
141 7 |
608 4 |
493 3 |
703 8 |
|
| EBITDA | 98 1 |
65 6 |
343 4 |
301 8 |
434 0 |
▪ Accelerating revenue growth |
| EBIT Impairment and other charges , net ex. |
33 8 |
(28 9) |
71 2 |
(41 7) |
(32 0) |
|
| Net financial items |
(28 1) |
(29 5) |
(81 5) |
(79 2) |
(97 6) |
vs. 2021 |
| Income (loss) before income tax expense |
7 5 |
(59 4) |
(8 6) |
(118 8) |
(163 8) |
|
| Income tax expense |
(4 9) |
(1 3) |
(19 2) |
(7 1) |
(15 6) |
▪ Increasing cash flow |
| Net income (loss) equity holders to |
2 6 |
(60 7) |
(27 8) |
(125 9) |
(179 4) |
|
| (\$ share) Basic earnings share per per |
\$0 00 |
(\$0 15) |
(\$0 05) |
(\$0 32) |
(\$0 45) |
|
| ▪ Net interest bearing debt |
||||||
| Other key numbers |
(incl. leasing) down \$189.7 | |||||
| Net cash provided by operating activities |
177 9 |
114 5 |
284 9 |
284 5 |
326 6 |
|
| Cash Investment in MultiClient library |
33 7 |
35 0 |
81 4 |
103 9 |
127 2 |
million from start of year |
| Capital expenditures (whether paid not) or |
9 5 |
6 2 |
44 6 |
23 7 |
33 4 |
|
| Total assets |
1 719 5 , |
1 843 0 , |
1 719 5 , |
1 843 0 , |
1 792 8 , |
|
| Cash and cash equivalents |
179 1 |
193 0 |
179 1 |
193 0 |
170 0 |
|
| Net interest bearing debt |
773 0 |
917 9 |
773 0 |
917 9 |
936 4 |
|
| Net interest bearing debt including lease liabilities following IFRS 16 , |
861 6 |
1 046 1 , |
861 6 |
1 046 1 , |
1 051 3 , |
Improving pricing and EBIT margin for contract work
Total MultiClient revenues of \$91.2 million
* Estimated MultiClient pre-funding revenues based on percentage-of-completion ("POC")
| US In millions of dollars |
September 30 2022 |
September 30 2021 |
December 31 2021 |
|---|---|---|---|
| Total assets |
1 719 5 , |
1 843 0 , |
1 792 8 , |
| MultiClient Library |
322 4 |
489 5 |
415 6 |
| Shareholders' equity |
371 5 |
297 5 |
245 1 |
| Cash (unrestricted) and cash equivalents |
179 1 |
193 0 |
170 0 |
| Restricted cash |
75 5 |
69 6 |
73 7 |
| Gross interest bearing debt |
1 027 6 , |
1 180 5 , |
1 180 1 , |
| Gross interest bearing debt including lease liabilities following IFRS 16 , |
1 116 2 , |
1 308 7 , |
1 295 0 , |
| Net interest bearing debt |
773 0 |
917 9 |
936 4 |
| Net interest bearing debt including lease liabilities following IFRS 16 , |
861 6 |
1 046 1 , |
1 051 3 , |
| Q3 | Q3 | YTD | YTD | Full year |
|
|---|---|---|---|---|---|
| In millions of US dollars | 2022 | 2021 | 2022 | 2021 | 2021 |
| Cash provided by operating activities |
177.9 | 114.5 | 284.9 | 284.5 | 326.6 |
| Investment in MultiClient library |
(33.7) | (35.0) | (81.4) | (104.0) | (127.3) |
| Capital expenditures |
(13.2) | (8.3) | (40.0) | (26.4) | (35.4) |
| Other investing activities |
(1.9) | (1.6) | (6.4) | (6.8) | (9.2) |
| Net cash flow before financing activities |
129.1 | 69.6 | 157.1 | 147.3 | 154.7 |
| Debt and proceeds, of deferred loan from issuance of debt/net cash for debt amendment* repayment net costs, non-current payment |
(143.8) | (0.1) | (143.8) | (19.3) | (19.5) |
| Interest paid on interest bearing debt |
(24.7) | (20.6) | (66.5) | (60.6) | (80.8) |
| from Proceeds share issue and share buy back |
13.6 | - | 96.3 | - | - |
| IFRS Payment of lease liabilities and related interest (recognized under 16) |
(10.3) | (12.4) | (32.2) | (36.6) | (49.2) |
| Decrease (increase) in restricted cash related debt service non-current to |
(4.6) | 1.1 | (1.8) | 5.5 | 8.1 |
| Net increase (decr.) in cash and cash equiv. |
(40.7) | 37.6 | 9.1 | 36.3 | 13.3 |
▪ Strong Q3 cash flow driven by Q2 and Q3 revenue growth and solid collection
▪ \$129.1 million Q3 net cash flow before financing activities
0 10 20 30 40 50 60 70 80 90 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 USD million Revenue generation in excess of gross cash costs and CAPEX**
▪ Secured robust liquidity reserve until Q3 2023 refinancing need
*\$50 million new senior secured debt not included in graph as it remained undrawn by end Q3.
** The graph shows revenues less gross cash costs and CAPEX per quarter. Revenue generation in the graph is based on the estimated revenue value of production relating to MultiClient surveys on a percentage-of-completion "POC" basis.
Rune Olav Pedersen, President & CEO
This presentation must be read in conjunction with the Q3 2022 Earnings Release and the disclosures therein.
Sales leads and active tenders for contract work
Development of contract revenue per 3D vessel day*
*Adjusted for node and source vessel operations. Excludes revenues from the long-term support agreement in Japan. ** Q4 2022 based on terms and conditions of secured contract work in order book.
0 50 100 150 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 USD million MultiClient revenue* by region Europe Africa Middle East N. America S. America Asia Pacific
PGS has MultiClient 3D data on 11 of 13 blocks on offer in UK First CCS Round and are actively working up site models for new areas ahead of next round
| Group cash cost | MultiClient cash investment |
Active 3D vessel time allocated to Contract |
Capital expenditures | |
|---|---|---|---|---|
| 2022 Guidance | ~\$500 million | ~\$110 million down from ~\$125 million |
~70% up from ~65% |
~\$60 million |
| Year-to-date | \$357.3 million | \$81.4 million | 59% | \$44.6 million |
COPYRIGHT
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This presentation must be read in conjunction with the Q3 2022 earnings release and the disclosures therein.
| Vessel | When | Expected duration |
Type of yard stay |
|---|---|---|---|
| Ramform Atlas | Q4 2022 | 10 days | Port call – general maintenance and source controller upgrade |
| Ramform Titan | Q4 2022 | 5 days | Port call – general maintenance |
| Ramform Vanguard | Q4 2022 | 8 days | Port call – general maintenance and UPS upgrade |
| Ramform Sovereign | Q1 2023 | 25 days | 15-year main classing |
| Ramform Tethys | Q3 2023 | 20 days | Intermediate class + docking |
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