GGS ASA Global Geo Services - GGS ASA Pareto Securities’ 15th Annual Oil & Offshore Conference...
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Transcript of GGS ASA Global Geo Services - GGS ASA Pareto Securities’ 15th Annual Oil & Offshore Conference...
GGS ASA
Global Geo Services - GGS ASA
Pareto Securities’ 15th Annual Oil & Offshore Conference
Oslo, 10 September 2008
CEO Knut Øversjøen
Copy of presentation available on www. GGS.no
2GGS ASA
GGS: Sales are three times higher, EBITDA is 83 MNOK higher than LY
Headlines 2nd quarterMNOK
• Rig operation starts to be reflected in financial figures- Alligator has been in drilling period since 31. January- Barracuda went into drilling period 28. April- Al Baraka 1 in final phase of yard stay
• Seismic operation carved out and sold to Spectrum ASA- Spectrum ASA is now listed on Oslo Axess
36,6
75,8
169,9
240,5
-
50,0
100,0
150,0
200,0
250,0
300,0
Q2 H1
NO
K m
illi
on
s
Revenues
2007 2008(20,0)
(20,8)
57,1 62,0
(30,0)
(20,0)
(10,0)
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
Q2 H1
NO
K m
illi
on
s
EBITDA
(33,8)
(57,6)
8,4
(31,2)
(70,0)
(60,0)
(50,0)
(40,0)
(30,0)
(20,0)
(10,0)
-
10,0
20,0
Q2 H1
NO
K m
illi
on
s
EBIT
3GGS ASA
GGS exposure post Spectrum
Long term contracts Tax efficient Singapore
structure
GGS ASA
3 Tender Barges PC 2000 Taxloss Carry forward
Other
MC Library to be capitalized
Combined with PC 2000 should add shareholder value
Clean up of old commitments, and Spectrum related exposures
Gross debt MUSD 150 Cash and cash equiv MUSD 54 Spectrum transaction effects MUSD 18 Spectrum receivable MUSD 29 Calcualted NIBD 30. June 2008 MUSD 49
GGS is a dedicated niche rig company
Expect to be debt free in 2009Limited leverage compared to asset values
4GGS ASA
Agenda
1. GGS Update
2. GGS going forward
3. Financial information
5GGS ASA
Contract summary
2008 2009 2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
J F MAMJ J A S OND J F MAMJ J A S OND J F MAMJ J A S OND J FMAMJ J A S OND J F MAMJ J A S OND J F MAMJ J A S OND J F MAMJ J A S O N D
Alligator*
Al Baraka
Barracuda
Production Mob/Demob Yard Stay Option
* Petronas – final contract as of 10. September 2008.
6GGS ASA
Acquired from Pride International 29 January 2008
The modularized drilling package is lifted from the unit onto the platform prior to drilling operations.
Alligator is moored next to the platform rig during drilling operations, contains living quarters, storage for drilling supplies, power machinery for running the drilling equipment, helicopter deck, and well completion equipment.
Alligator has been operating for several years offshore West Africa – currently on a contract with Chevron in Angola with a confirmed duration up until end of 2008.
At completion of this contract Alligator will be moved to Singapore for Class recertification and gross maintenance work.
Alligator –Non-propelled self erecting tender rig
Rig Type Self Erecting Drilling Tender
Drilling Depth 20,000 ft
Classification Bureau Veritas
Registry Country Singapore
Built Year 1982
Water Depth115’ – 450’
Hull Dim. (LBD) 300’ x 90’ x 20’
Variable deck load 5,732 tons
Power Plant 4 x 3,516 kW
Accommodation 110 beds
7GGS ASA
Agreement with Pride International to complete the CABGOC Contract on behalf of GTB, estimated to end January/February 2009
1 year fixed contract @ 110,000USD/dayrate
Operation Results produced by Pride so far is satisfactory, more or less in line with budgets
GTB/KCAD has a team in place in Angola to follow the operation
GTB/KCAD is currently planning the SPS to be carried out in Q1/Q2 2009
Final contract with Petronas Carigali, 4 year, one year option, averagre 135,000 USD/dayrate. Cost escalation included in the price formula.
Alligator -Consistent Operation in Angola
8GGS ASA
Barracuda- Non-propelled self erecting tender rig
GTB acquired Barracuda 20th February 2008
The modularized drilling package is lifted from the unit onto
the platform prior to operations.
Barracuda is moored next to the platform rig during drilling
operations, contains living quarters, storage for drilling
supplies, power machinery for running the drilling equipment,
helicopter deck, and well completion equipment.
Class recertification (SPS) and some upgrade work Keppel
Gul Yard, from January to March 2008
Major upgrades has included: Power & Assoc. Equipment Accommodation refurbishment Lifting and handling equipment BOP Safety Equipment Drilling Package Mud Treatment system Anchor Winches and mooring systems
Rig Type Self Erecting Drilling Tender
Drilling Depth 20,000 ft
Water Depth50’ – 450’
Classification Bureau Veritas
Registry Country Singapore
Built Year 1982
Hull Dim. (LBD) 300’ x 90’ x 20’
Variable deck load 4700 tons
Power Plant 4 x 3,512 kW
Accommodation 120 beds
9GGS ASA
Barracuda in full operation for TOTAL in Indonesia
2+1 year drilling contract with Total Indonesie
2 year fixed contract @ 105,000USD/dayrate
1 year optional @ 105,000USD/dayrate
Commencement of Contract with Total Indonesia on 28th April 2008
GTB has established a base in Balikpapan, Indonesia
GTB holds catering, labor and yard contracts in Indonesia in order to fulfill the contract obligations towards TOTAL
Operation Results produced by so far is satisfactory
Current operation: Drilling on Sisi platform, Kalimantan
10GGS ASA
AL Baraka 1: Non-propelled self erecting tender rig
GTB acquired 20th February 2008 As a tender assist drilling unit the Al Baraka will operate
alongside fixed offshore platforms where all drilling operations are conducted on the fixed platform while drilling support functions are on the floater.
The market for this type of drilling units are typically in benign offshore waters of West Africa and South East Asia.
After several years of operation offshore West Africa the Al Baraka is in Singapore for Class recertification and upgrade work
Major upgrades has included Power & Assoc. Equipment Accommodation New Cranes BOP Safety Equipment Drilling Package VCD & Mud Treatment system Anchor Winches and mooring systems
Rig Type Self Erecting Drilling Tender
Drilling Depth 20,000 ft
Classification Bureau Veritas
Registry Country Singapore
Built Year 1993
Water Depth40’ – 650’
Hull (LWD) 320’ x 105’
Variable deck load 4700 tons
Power Plant 4 x 3,512
Accommodation 100
11GGS ASA
AL Baraka 1 – Shipyard Project at Keppel Gul Yard
ETA Shipyard; 16th April 2008, ETD September 2008
GTB holds a 3+1 year drilling contract with Brunei Shell Petroleum
3 year fixed contract @ 125,000USD/dayrate+ escalation
1 year optional @ escalated/dayrate
GTB has established a base branch in, Kulai Beleit, Brunei
GTB holds catering, labor and yard contracts in Indonesia in order to fulfill the contract obligations towards Brunei Shell Petroleum
Initial operation: Drilling on Mampak platform, offshore Seria, Brunei
12GGS ASA
Agenda
1. GGS Update
2. GGS going forward
3. Financial information
13GGS ASA
Strategic focus going forward
Further develop organisation
-Operating skills
- Yard expertise
- Cost
- Focus
Strong shareholder base
Organisational ability
- Transaction
- Operational
Competence
Shipyard knowledge
Capable financially
Related assets available
Niche segments in same geographical areas
Increased activity in region?
Loss carried forward
Optimize shareholder value with short to medium term time horizon
14GGS ASA
Take part in consoldation
GGS is willing to consolidate if the right structure / market
values are in place.
15GGS ASA
New builds
• A new design is under consideration
• Current market characteristics:- Few new builds currently in the market- Major E&P companies are currently considering long term commitments
• Selected and well known shipyards are under evaluation
• Expected new build prices are MUSD 170-200, dependent on specifications• ONLY an alternative for GGS with a long term contract in advance (> 4 years)
16GGS ASA
Is it an option to acquire related assets?
Drillship DPSemisubmersibleDP
SemisubmersibleMoored
Jack-upTender rigPlatformBarge
• Build on current core competences• Shallow water exposure is an attractive niche market• Asian pacific is the most promising geographical area short term• There are current assets available for sale• Current credit crunch might result in distress sales 2008/2009
17GGS ASA
PC 2000The survey covers the Iranian part of the Persian Gulf and Gulf of Oman.
Invested 710 MNOK in 1999-2002.
Database
• 2D: 100 000 line km.• 3D: 3 250 km².
National Iranian Oil Company (NIOC) has given GGS exclusive rights to the library and all offshore Multi Client work until 2012.
Revenues totals 550 MNOK
• Sales to 16 companies.
• Uplifts if the companies are awarded licenses or start production.
• Revenues 1.half 2008 is MNOK 11
• Another MNOK 11 in revenues happened in September.
• Some activity in the region might result in some interest towards year end.
• One of the most promising areas to develop in the years to come if the political situation stabilises.
GGS block
PC2000 is an alternative spinoff case out of GGS?
18GGS ASA
Agenda
1. Rig operation
2. GGS going forward
3. Financial information
19GGS ASA
P/L 1st half
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
FY2008 2007 2008 2007 2007
Continuing operations
Revenue 121 265 396 166 742 396 8 356
Operating expenses (76 817) (4 664) (99 630) (11 738) (38 231)
EBITDA 44 448 (4 268) 67 112 (11 342) (29 875)
Amortisation and depreciation (39 104) (4 873) (63 881) (10 214) (19 935) Write-downs 2 561
EBIT 5 344 (9 141) 3 231 (21 556) (47 249)
Interest expense, net (13 796) (591) (11 270) (915) 9 605 Foreign exchange gain/-loss 4 280 84 6 595 569 (22 443) Other financial items 79 777 (2) 79 204 (198) (13 498) Net financial items 70 261 (509) 74 529 (544) (26 336)
Profit/-loss before tax 75 605 (9 650) 77 760 (22 100) (73 585) Tax expense (5 067) (6 187) Net profit/-loss from continuing operations 70 538 (9 650) 71 573 (22 100) (73 585)
Discontinued operationsNet profit/-loss from discontinued operations 1 248 (38 642) (45 179) (56 957) (79 954)
Net profit/-loss 71 786 (48 292) 26 394 (79 057) (153 539)
Net profit/loss to minority interest (449) 33 -
Net profit/loss to equity holders 71 337 (48 292) 26 427 (79 057) (153 539)
Earning / loss(-) per share 0,09 (0,41) 0,03 (0,74) (0,42) Diluted earning / loss(-) per share 0,09 (0,41) 0,03 (0,73) (0,42)
Basic shares outstanding average 805 276 687 117 268 734 805 276 687 106 168 275 367 078 036 Dilluted shares outstanding average 805 276 687 118 917 549 805 276 687 108 026 849 369 041 491
(In thousands of NOK)
Quarter ended Year to dateJun 30 Jun 30
20GGS ASA
P/L 1st half
GGS ASA - key figures Q2 Q2 H1 * H1 Year
NOK million 2008 2007 2008 2007 2007
Revenues
Continued operations (GGS) 121,3 0,4 166,7 0,4 8,4
Discontinued operations (SpectrumASA) 48,6 36,2 73,8 75,4 140,8
Total 169,9 36,6 240,5 75,8 149,2
EBITDA
Continued operations (GGS) 44,5 (4,3) 67,1 (11,3) (29,9)
Discontinued operations (SpectrumASA) 12,6 (15,7) (5,1) (9,5) 8,5
Total 57,1 (20,0) 62,0 (20,8) (21,4)
EBIT
Continued operations (GGS) 5,3 (9,1) 3,2 (21,6) (47,2)
Discontinued operations (SpectrumASA) 3,1 (24,7) (34,4) (36,0) (73,0)
Total 8,4 (33,8) (31,2) (57,6) (120,2)
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
21GGS ASA
Balance sheet 1st half - Assets
Year ended31st of December
(In thousands of NOK) 2008 2007 2007
AssetsFixed assetsIntangible fixed assets
Goodwill - 6 738 28 347 Patents - - 10 825 Multi-client library, net 14 357 122 275 127 442
Total intangible fixed assets 14 357 129 013 166 614
Tangible fixed assetsMachinery and equipment 1 196 723 14 439 29 171
Financial fixed assetsInvestment in joint ventures (0) 1 481 1 715 Prepaid Charter - 26 740 - Other long term receivables 150 000 101 -
Total financial fixed assets 150 000 28 322 1 715 Total fixed assets 1 361 080 171 774 197 500
Current AssetsOther investments 1 003 - Inventory - 8 877 6 379
ReceivablesAccounts receivable 152 970 39 133 25 864 Other receivables 219 456 13 032 32 556
Total receivables 372 426 52 165 58 420
Restricted cash 75 964 - 117 843 Cash and cash equivalents 196 432 25 749 507 086
Total current assets 645 825 86 791 689 728
Total assets 2 006 905 258 564 887 228
Share capital 80 527 11 727 80 526 Share premium reserve 826 265 91 704 826 264 Other equity - 15 939 - Not registered capital increase - -
Total paid-in capital 906 792 119 370 906 790
Retained earnings (139 738) (129 311) (88 319) Other equity 30 968 (22 701) Minority interest 45 793 - -
Total equity 843 814 (9 941) 795 770
Deferred tax - 4 791 - Deferred revenue 136 839 1 750 - Long term liabilities 764 264 19 430 3 535
Total long term liabilities 901 103 25 971 3 535
Short term debt 69 879 112 481 3 379 Payable tax - 177 173 Deferred revenue 21 497 27 141 17 207 Accounts payable, accrued expenses and other short term liabilities 170 612 102 734 67 164
Total current liabilities 261 987 242 533 87 923
Period endingJune 30
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
22GGS ASA
Balance sheet 1st half – Equity and liabilities
Year ended31st of December
Goodwill - 6 738 28 347 Patents - - 10 825 Multi-client library, net 14 357 122 275 127 442
Total intangible fixed assets 14 357 129 013 166 614
Machinery and equipment 1 196 723 14 439 29 171
Investment in joint ventures (0) 1 481 1 715 Prepaid Charter - 26 740 - Other long term receivables 150 000 101 -
Total financial fixed assets 150 000 28 322 1 715
Other investments 1 003 - Inventory - 8 877 6 379
Accounts receivable 152 970 39 133 25 864 Other receivables 219 456 13 032 32 556
Total receivables 372 426 52 165 58 420
Cash and cash equivalents 196 432 25 749 507 086 Total current assets 645 825 86 791 689 728
Total assets 2 006 905 258 564 887 228
Shareholders' Equity and Liabilities Shareholders' equity Paid-in capital
Share capital 80 527 11 727 80 526 Share premium reserve 826 265 91 704 826 264 Other equity - 15 939 - Not registered capital increase - -
Total paid-in capital 906 792 119 370 906 790
Retained earnings (139 738) (129 311) (88 319) Other equity 30 968 (22 701) Minority interest 45 793 - -
Total equity 843 814 (9 941) 795 770
LiabilitiesLong term liabilities
Deferred tax - 4 791 - Deferred revenue 136 839 1 750 - Long term liabilities 764 264 19 430 3 535
Total long term liabilities 901 103 25 971 3 535
Current liabilitiesShort term debt 69 879 112 481 3 379 Payable tax - 177 173 Deferred revenue 21 497 27 141 17 207 Accounts payable, accrued expenses and other short term liabilities 170 612 102 734 67 164
Total current liabilities 261 987 242 533 87 923
Total shareholders' equity and liabilities 2 006 905 258 564 887 228
Year ended31st of December
(In thousands of NOK) 2008 2007 2007
Goodwill - 6 738 28 347 Patents - - 10 825 Multi-client library, net 14 357 122 275 127 442
Total intangible fixed assets 14 357 129 013 166 614
Machinery and equipment 1 196 723 14 439 29 171
Investment in joint ventures (0) 1 481 1 715 Prepaid Charter - 26 740 - Other long term receivables 150 000 101 -
Total financial fixed assets 150 000 28 322 1 715
Other investments 1 003 - Inventory - 8 877 6 379
Accounts receivable 152 970 39 133 25 864 Other receivables 219 456 13 032 32 556
Total receivables 372 426 52 165 58 420
Cash and cash equivalents 196 432 25 749 507 086 Total current assets 645 825 86 791 689 728
Share capital 80 527 11 727 80 526 Share premium reserve 826 265 91 704 826 264 Other equity - 15 939 - Not registered capital increase - -
Total paid-in capital 906 792 119 370 906 790
Retained earnings (139 738) (129 311) (88 319) Other equity 30 968 (22 701) Minority interest 45 793 - -
Total equity 843 814 (9 941) 795 770
Deferred tax - 4 791 - Deferred revenue 136 839 1 750 - Long term liabilities 764 264 19 430 3 535
Total long term liabilities 901 103 25 971 3 535
Short term debt 69 879 112 481 3 379 Payable tax - 177 173 Deferred revenue 21 497 27 141 17 207 Accounts payable, accrued expenses and other short term liabilities 170 612 102 734 67 164
Total current liabilities 261 987 242 533 87 923
Period endingJune 30
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
Figures are unaudited
As a result of rounding differences, numbers or percentages may not add up to the total.
23GGS ASA
GGS Going forward
• Finalize Al Baraka 1 yard stay
• Prepare Alligator for new contract
• Consider new built
• Consider M&A projects
• PC 2000
24GGS ASA
Thank you for the attention !