Upload
tore-i-hellebo
View
236
Download
6
Embed Size (px)
Citation preview
www.dolphingeo.com
Dolphin Group ASA Unaudited Q4 and 2014 preliminary Full-Year Presentation 18 February 2014
Atle Jacobsen (CEO) & Erik Hokholt (CFO)
2
Dolphin reports an overall strong 2014, with total revenues of USD 440 million and pre-tax profit of USD 35 million, in what became an
increasingly difficult market
www.dolphingeo.com
This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Dolphin Group ASA (“Dolphin Group” or “Dolphin”) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the Dolphins businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Dolphin believes that its expectations and the information in this Report were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Report. Dolphin nor any other company within the Dolphin group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Report, and neither Dolphin, any other company within the Dolphin Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Report. Dolphin undertakes no obligation to publicly update or revise any forward-looking information or statements in the Report.
There may have been changes in matters which affect Dolphin Group subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of Dolphin Group has not since changed, and Dolphin Group does not intend, and does not assume any obligation, to update or correct any information included in this presentation. The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice. This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of the Norwegian courts.
Disclaimer
3
www.dolphingeo.com
Table of contents
I. Highlights for Q4 and preliminary Full-Year 2014 results
II. Financials
III. Operational status and market outlook
IV. Appendix
4
www.dolphingeo.com
Atle Jacobsen, CEO, commented for Q4
“I’m very pleased to report that 2014 was an overall strong year for Dolphin. The year ended with total revenues of USD 440 million, a group EBIT margin of 12% and net profit before tax of USD 35 million, in what became an increasingly difficult market. The focused and consistent efforts within our Multi-Client business segment resulted in solid late sales in Q4. The marine contract EBIT margin was negatively impacted by vessel relocations between regions and low utilisation for our 2D vessel and low-end 3D vessel. Going forward, solid backlog will soften the effect of the weaker pricing and utilisation that the industry will experience during 2015 Our modern fleet of six high-end 3D vessels capable of cost efficient “powerful solutions” surveys will be complete when taking delivery of Polar Empress in April. Dolphin has a continued expectation of strong Multi-Client performance in 2015, and we will continue to grow our Processing & Imaging business in order to reinforce our holistic marine geophysical offering to our clients. Our focus for the year will be to continue to leverage our "powerful solutions" offering combined with the value of being a fully integrated marine seismic company, with the goal of capturing more of our clients’ business. We reiterate our 2015 financial guidance.”
Dolphin is a fully integrated global marine geophysical company
5
www.dolphingeo.com
Highlights Preliminary Full-Year
6
• Revenues of USD 440.2 million (USD 246.5 million) • EBITDA of USD 124.8 million (28.4%) (USD 76.0 million ) • EBIT of USD 54.6 million (12.4%) (USD 31.4 million) • Profit before tax of USD 34.7 million (USD 19.8 million)
• Two high-capacity 3D vessels successfully introduced in the seismic market • Multi-Client sales exceeded cash investments • Positioned to utilise multi-sensor technology from Schlumberger
Financial
Operational
Full-Year 2014 vs. (2013)
www.dolphingeo.com
Highlights Q4
Financial
7
Operational
Q4 2014 vs. (Q4 2013)
• Revenues of USD 130.5 million (USD 38.8 million) • EBITDA of USD 33.6 million (25.7%) (USD 3.4 million) • EBIT of USD 6.4 million (4.9%) (USD -13.6 million ) • Profit before tax of USD 0.5 million (USD -16.7 million)
• Entered into a fully financed USD 40 million equipment agreement that included a complete Q-Marine Point-Receiver seismic system
• Solid order backlog for the winter season, relocated vessels for large contracts in the Pacific and the Indian Ocean
www.dolphingeo.com
• Revenue growth to record high USD 130.5 million, despite a challenging market
• EBITDA of USD 33.6 million (26%) at high level, due to successful Multi-Client sales
• EBIT of USD 6.4 million (5%) influenced by idle 2D vessel and increased regional relocation cost of vessels
Key financials - quarterly developments
8
Net operating revenues
EBIT
EBITDA
Profit Before Tax
(USD Million)
www.dolphingeo.com
Solid backlog avoided spot market for winter season
Modern high-capacity 3D vessels are in demand
9
• USD 285 million as of 1 Feb 2015
• Well covered for the next quarters
- ~ 95% covered for Q1 15
- ~ 80% covered for Q2 15
- ~ 62% covered for Q3 15
- ~ 15% covered for Q4 15
• ~ 30% of backlog relates to Powerful
Solutions (+12 streamers)
• Includes planned Multi-Client projects
in the UK and Norway, est. 12% of
vessel capacity next 9 months
Backlog quarterly development*
(USD Million)
www.dolphingeo.com
Table of contents
I. Highlights for Q4 and preliminary Full-Year 2014 results
II. Financials
III. Operational status and market outlook
IV. Appendix
10
www.dolphingeo.com
Profit & Loss Statement
11
Q4 2014 Q4 2013 Year 2014 Year 2013
Unaudited Unaudited Unaudited Audited
Net Operating Revenues 130.5 38.8 440.2 246.5
Operating Expenses
Cost of sales 90.9 30.0 292.5 150.1
Amortisation and write-down of Multi-Client library 12.6 8.5 23.0 17.8
Selling, general and administrative cost 5.7 4.8 21.3 18.1
Share-based compensation 0.4 0.5 1.6 2.3
Depreciation, amortisation and write-down 14.6 8.4 47.2 26.8
Total Operating Expenses 124.1 52.3 385.6 215.1
Operating Profit (EBIT) 6.4 -13.6 54.6 31.4
Total financial income 0.4 0.3 1.5 1.0
Total financial expenses -6.3 -3.4 -21.4 -12.7
Net Financial Items -5.9 -3.2 -20.0 -11.6
Profit Before Taxes 0.5 -16.7 34.7 19.8
Tax expense ordinary 0.1 -1.7 8.1 7.3
Tax expense currency effect 4.2 - 4.5 -
Net Income -3.8 -15.0 22.0 12.4
Basic earnings per share ordinary tax 0.00 -0.04 0.08 0.04
Diluted earnings per share ordinary tax 0.00 -0.04 0.08 0.04
Average share outstanding 343,344,789 341,489,151 343,681,325 335,349,588
Average share outstanding diluted 345,249,864 349,679,945 348,524,023 345,227,931
• Record revenues
• Contract EBIT margin was
negatively impacted by:
− low utilisation of our 2D and
low-end 3D vessel
− vessel relocations between
regions
• USD 1.5 million FX loss
• USD 0.5 million loss on
shares
• None cash FX effect on
Norwegian tax positions of
USD 4.2 million
(USD Million)
www.dolphingeo.com
Revenue distribution
12
• Record quarterly revenues of USD 130.5 million, and 79% growth YoY
• Multi-Client late sales boost in Q4 to USD 22.3 million, with 80% increase for the year
• Multi-Client sales triggered by new completed data sets in prospective areas
• Processing & Imaging growing as planned (74% YoY)
Q4 2014 Q4 2013 Year 2014 Year 2013
In millions of USD Unaudited Unaudited Unaudited Audited
Geophysical:
Marine Contract 98.4 29.3 375.7 209.4
Multi-Client prefunding 5.0 3.8 26.0 19.7
Multi-Client late sales 22.3 3.8 23.8 8.0
Processing 4.1 1.3 11.3 6.5
Other - - 0.2 -
Dolphin Interconnect:
Contract 0.6 0.5 3.2 2.8
Net Operating Revenues 130.5 38.8 440.2 246.5
Comments
www.dolphingeo.com
Asset-light balance sheet (USD Million)
Comments on assets:
• Asset-light balance sheet
• Increase in seismic equipment for the
new vessels Sanco Sword and Polar
Marquis.
• Other current assets increased due
to high receivables
Comments on equity and debt:
• Equity increase through retained
earnings. Total equity ratio of 40.3%
• New debt* related to equipment
purchase for new vessels
• Improved financial covenants * to
better reflect Dolphin’s development
YE 2013 YE 2014
13
* See appendix for details
www.dolphingeo.com
Asset-light business model – limited off-balance sheet commitments
Annual minimum operational leasing obligations (USD million)
Graph shows total minimum operational leasing obligations according to IAS 17 Source: Dolphin Group ASA, 31 December 2014
14
• USD 185 million reduced commitment from 2012 to 2015
• Includes all seismic vessels (Polar Empress from Q1 2015), and only firm Time-Charter period
• Significantly lower commitments than vessel ownership
• Asset-light model, highly flexible and valuable in a weak market
• No vessel impairment write-offs (Not Applicable for Dolphin)
374
336
272
189
117
60
23 3
203
www.dolphingeo.com
Cash flow – detailed
15
Q4 2014 Q4 2013 Year 2014 Year 2013
Unaudited Unaudited Unaudited Audited
(USD Million)
Q4 comments:
• Working capital increased due
to high Multi-Client sales ,
which will be collected in Q1
2015
• Certain clients delayed
payments into 2015
• Limited Multi-Client
investments in Q4
Full-Year comments:
• Solid cash-flow from operations
at USD 104 million
• Capex relates to Sanco Sword,
Polar Marquis, increased
streamer pool and processing
capacity expansion
Operating Activities
Profi t before tax 0.5 -16.7 34.7 19.8
Depreciation and wri te-down 14.6 8.4 47.2 26.8
Amortisation and wri te-down of Multi -Cl ient l ibrary 12.6 8.5 23.0 17.8
Interest, share-based payment and other 0.4 0.5 1.6 2.3
Interest expense 4.6 3.4 17.3 10.9
Changes in current assets/l iabi l i ties -19.4 8.7 -20.0 2.5
Net Cash Flow From Operating Activities 13.2 12.8 103.7 80.0
Investing Activities
Purchase of property, plant and equipment -5.3 -4.8 -16.1 -22.3
Prepaid seismic equipment -1.5 -10.7 -116.2 -92.0
Net investment in Multi -Cl ient -7.9 -16.2 -43.9 -44.7
Investment in intangible asset and operating equipment -0.7 -0.5 -3.5 -1.7
Investment through acquis i tion 0.0 0.0 -1.0 -1.3
Net Cash Flow From Investing Activities -15.4 -32.2 -180.7 -162.1
Financing Activities
Net proceeds from issue of new equity 0.0 0.0 1.5 42.1
Purchase of treasury shares -1.7 0.0 -1.7 42.1
Proceeds from borrowing 0.5 65.3 87.4 90.8
Interest pa id -4.4 -2.7 -15.7 -8.6
Repayment of interest bearing debt -11.6 -8.0 -33.2 -44.4
Net Cash Flow From Financing Activities -17.3 54.5 38.2 122.1
Net Change In Cash and Cash Equivalents -19.4 35.1 -38.8 -2.1
Cash and cash equiva lents opening balance 56.1 40.3 75.4 77.5
Cash and Cash Equivalents Closing Balance 36.7 75.4 36.7 75.4
www.dolphingeo.com
Comments:
• Achieved target for 2014 of Net MC Sales > cash
investment
• Q4 Net cash investment of USD 8 million , with pre-
funding of 63% (USD 5 million). Q4 Investment to
Sales ratio of 3.5x
• Solid late sales, primarily from Barents Sea library
Multi-Client net sales higher than cash investments
16
Net Book Value Net cash investment vs. MC net sales
Comments:
• Net Book Value of library reduced in Q4
• Dolphin Multi-Client assets are funded by clients
• Reduced MCS investment guidance of USD 50 million
achieved for 2014
www.dolphingeo.com
Multi-Client investments and NBV per vintage
NBV Max NBV
• Performed detailed review
of all MC library vintages at
year-end 2014
• Additional project write-
down of USD 3.6 million
made in Q4 2014
• Average amortisation rate
of 46% used in 2014
• Few converted contract
projects
• All vintages below max NBV
N n
Dolphin takes a prudent approach to Multi-Client investments and amortisation
17
USD
million
www.dolphingeo.com
Dolphin has a history of strong value creation
• Focus on delivering shareholder value through growth and earnings by executing the corporate strategy of Dolphin
• Continue to deliver on business plan and get to a position of regular dividend payments and/or share buybacks
• Dolphin has raised a total equity of NOK 1,135 million (USD 150 million) since 2010
• Current market capitalisation of est. USD 135 million / NOK 1 billion
• Listed at main list Oslo Stock Exchange with 1872 supporting shareholders
0.0
1.5
3.0
4.5
6.0
7.5
9.0
500
1,000
1,500
2,000
2,500
3,000
Jan
-10
Ap
r-1
0
Jul-
10
Oct
-10
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Shar
e p
rice
(N
OK
)
NO
Km
(M
arke
t ca
p v
s in
ject
ed
cap
ital
)
Market cap Injected capital Share price
Source: FactSet – retrieved 16 February 2015
May – June 2010: Private Placement NOK 12m at NOK 2.0
Dec 2010: Private Placement NOK 391m at NOK 2.5
Oct 2011: Private Placement NOK 215m at NOK 3.0
Nov 2011: Loan conversion NOK 34m at NOK 2.5
Mar 2012: Private Placement NOK 245m at NOK 4.60
Feb 2013: Private Placement NOK 226m at NOK 7.4
18
www.dolphingeo.com
Table of contents
I. Highlights for Q4 and preliminary Full-Year 2014 results
II. Financials
III. Operational status and market outlook
IV. Appendix
19
www.dolphingeo.com
Growing Multi-Client data library
Expanding modern fleet Full onshore & offshore processing & imaging
In production • 5x High-End 3D vessels • 1x Mid size 3D vessel • 1x Ice-class 2D vessel Under construction • 1x High-End 3D vessel to
be delivered in Q2 2015
Library of modern 2D & 3D data
Areas of focus: • North Sea UK and Norway • Norwegian Barents Sea • West Africa • Brazil
USD 172 million already invested 26,800 km2 of 3D and 48,100 km of 2D successfully completed
Marine Contract Multi-Client Processing & Imaging
In-house Processing and R&D
• Processing centres in UK, Houston and Singapore
• On-board Processing on all vessels
• Fast track data delivery • AVO Friendly Broadband
solution (SHarp)
Processing Software
Land & marine seismic processing software
Software for the 21st Century • QC, Time &
Depth Processing • Interactive user interface • Advanced 2D and
3D visualisation • Parallel processing and
job management
Business lines
20
www.dolphingeo.com
May ‘11
Rapid and successful fleet expansion – one vessel to go
Polar Marquis (3D , 14 str) Sanco Swift (3D, 16 str) Polar Duke (3D, 12-14 str) Polar Duchess (3D, 12-14 str)
Artemis Atlantic (2D) Artemis Arctic (3Dm 6/8str) Sanco Sword (3D, 16 str) Polar Empress (3D, 22 str)
Delivered May 2011 Delivered April 2012 Delivered July 2013 Delivered May 2014
Delivered May 2011 Delivered May 2011 Delivered April 2014 Delivery April 2015
Q1 ‘12 Q2 ‘13 Q2 ‘14 Q2 ‘15
Fully operational fleet Vessel to be delivered
21
www.dolphingeo.com
Dolphin is asset-light with flexible Time-Charter commitments
22
Comments: • Artemis Atlantic will be redelivered in Q2 2015 • Artemis Arctic planned redelivered end 2015 • Variable options to extend at a pre-agreed rates • Control high-end vessels in 11 years, only small index adjustment of the terms in option period • Dolphin business model is flexible and highly favourable compared to “steel on balance sheet”
Vessel Firm initial period/Options 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
TC firm 4 years from May '11 April
Option of 2+2 years Redelivery
TC firm 5 years from May '11 May
Option of 6 years
TC firm 5 years from May '11 May
Option of 2+2 years
TC firm 5 years from March '12 March
Option of 4+2 years
TC firm 3.5 years from May '14 Nov
Option of 2+2 years
TC firm 5 years from June '13 June
Option of 2+2+2 years
TC firm 5 years from March '14 March
Option of 2+2+2 years
TC firm 5 years from April '15 April
Option of 3+3 years
Sanco Sword
Polar Empress
Polar Duke
Polar Duchess
Polar Marquis
Artemis Arctic
Artemis Atlantic
Sanco Swift
www.dolphingeo.com
Market shares (# of vessels – 3D fleet) Market shares (# of practical streamers – 3D fleet)
Dolphin retains market position
Other Other
Assumptions: Artemis Arctic (Dolphin) is taken out in 2016, SCF vessel (Polarcus) currently on bareboat, and where SCF has purchase option
12%
11%
16%
12%
15%
55
25%
16%
18%
13%
25%
2016E 2015E
15%
12%
2012 2013
4%
2014E
68
32%
18%
65
26%
25%
17%
11%
6%
12%
12%
16%
55
23%
18%
11%
16%
56
23%
18%
18%
13%
13%
12%
10%
13% 566
23%
18%
21%
14%
24%
2016E 2015E
16%
13%
2012 2013
5%
2014E
654
32%
21%
636
26%
24%
18%
12%
7%
13%
15%
12%
596
19%
19%
13%
12%
594
20%
19%
19%
23
www.dolphingeo.com
Dolphin fleet - among the most powerful vessels in the industry
High End
25%
12%
Increased market share in 14+ streamer market -> higher margin
24
www.dolphingeo.com
Multi-Client – increased importance in soft contract market
• Sales from Brazil, Norway, UK and North-West Africa • Delayed Norwegian 23rd licencing round resulted in
lower sales in the Barents Sea
2014 review
2015 outlook
• Solid late sales already secured for Q1 2015 • Norwegian 23rd licencing round announced • Brazil 13th licencing round expected • Norwegian 2015 APA announced • Promising Zulu discovery (Lundin) covered by our
UtStord survey (2015 APA acreage) • Dolphin will continue to expand its dominating
positions with selective investments in the UK, Barents Sea and Brazil
Gohta Discovery Alta Discovery
(Dolphin MC data)
DOLP MC Seismic Time Slice Capturing Zulu Discovery
Zulu Well
(Dolphin MC data)
25
www.dolphingeo.com
Multi-Client surveys in the right areas
Gohta
Maud Gulspurv
• Wide spatial 3D Sharp™ Broadband Seismic coverage
• Several hydrocarbon plays revealed • Covering APA and 23rd round blocks
• UtStord 3D, 5000km2, east of Johan Sverdrup • Zulu is first exploration well in PL 674 • Covering APA 2015 blocks
26
ZULU well
www.dolphingeo.com
Processing & Imaging – a critical success factor
Makes Dolphin a fully integrated marine geophysical contractor
• Our people, our software, our hardware
• Processing centres in Houston, London and Singapore
• Brings us closer to our clients
• It’s all about imaging and reduced exploration and production risk
27
A continuing successful growth story
• 74% YoY growth in external revenues, totalling USD 11 million for 2014
• Current backlog of USD 10 million for 2015
• Growing within re-processing and depth imaging
• Long-term target to represent 8% marine contract acquisition revenue
Marine Contract
Multi-Client
Processing & Imaging
www.dolphingeo.com
Market outlook 2015
Macro
• Sharp oil price decline last 6 months
• Continuing sanctions against Russia
28
E&P spend and seismic
• Reduction in E&P spend
• Slowdown in tender activity, resulting in increased pricing
pressure and lower utilisation
• Multi-Client sales more selective, driven by licensing rounds
and discoveries
• Continuing reduction in seismic supply due to vessel
“stacking” will contribute to improved supply/demand
balance
Brent Blend price development Source: Bloomberg
www.dolphingeo.com
Market outlook 2015 (continued)
Current market snapshot:
• Still low visibility in all regions for H1 2015
• Starting to see tender activity recovering from extremely low
levels mainly for H2 2015
• Asia/Pacific best market, almost in balance
• North/South America in recovery mode
• North Sea looks to be a 4D and Multi-Client market this season
• West Africa heavily over-supplied
• East Africa / India with healthy demand
• Still high tender activity from Russia
Dolphin
• Negative market effects dampened by strong Dolphin backlog
and Multi-Client late-sales
• Modern “powerful solutions” capacity with wide-tow in demand
• Cost efficiency initiatives to reduce cost base
• Leverage being a fully integrated marine geophysical company
29
www.dolphingeo.com
2015 Guidance – summary*
• Dolphin’s full year revenue is expected to exceed USD 500 million for 2015, representing a growth of 15-20% from 2014
• The Dolphin Multi-Client investments will primarily be made in prospective offshore
areas. Dolphin expect to allocate 15-20% of 3D vessel capacity to Multi-Client investments for 2015, representing cash investments of approximately USD 50-70 million
• The new and final 3D vessel, Polar Empress with 14- 22 streamer capacity, is on schedule
and is expected to be taken on charter in end of April 2015
• Dolphin will fully divest from the marine 2D and low-end 3D seismic market in 2015
• In a challenging market environment, Dolphin will focus on market positioning of the 6 modern high-capacity 3D seismic vessels, seismic processing and sales from an attractive Multi-Client seismic data library
• During 2015, Dolphin will prepare for the next generation of multi-sensor streamer technology, new acquisition techniques and joint cooperation models both on exclusive and non-exclusive basis will be targeted
*See appendix for details
30
Question & Answer Session
31
www.dolphingeo.com
Table of contents
I. Highlights for Q4 and preliminary Full-Year 2014 results
II. Financials
III. Operational status and market outlook
IV. Appendix
32
www.dolphingeo.com
2014 original guidance - successfully delivered
• Two new high-capacity vessels, Sanco Sword and Polar Marquis delivered
• Revenues expected to exceed USD 400 million for 2014
• Multi-Client investment in prospective areas offshore Brazil, Norway and UK
• Multi-Client investments of USD 60-80 million for 2014
• Processing services to grow more than 50% in 2014
• Select and prepare for the next generation of multi-sensor streamer technology
• Extending the broadband advantages of Dolphin's acquisition and processing technique SHarp
< 50
V
V
V
V
V
V
V
33
www.dolphingeo.com
• New Vessel capacity to be delivered on time and budget
• Polar Empress (3D, 14-22 str.) to be delivered end April 2015
• Pricing, costs, utilisation
• Overall revenues expected to exceed USD 500 million for 2015
• Expected day-rates of 230-330 USD/day in 2015 for 3D high-end seismic vessels, pending region and configuration
• Utilisation high-end 3D vessels, 82-88%
• Cash Opex high-end 3D vessels of ~118’-135’ USD/day
• All high-end 3D vessels will be permanently accompanied by 1x chase vessel and 1x support/fuel vessel
• Other external third party costs and revenues, 6-8% of revenues for 3D vessels. In addition individual reimbursable country specific costs will apply
• Estimated SG&A costs USD 6.0 – 6.5 million per quarter in 2015
• Multi-Client activities
• MCS 3D, 15-20% of vessel capacity
• Total cash MCS-investments in the range of USD 50-70 million
• Pre-funding targets of 2D > 50% and 3D>70%
• Sales ratio’s 1.7– 2.2 times MCS investment costs
• Capex
• New seismic equipment investment of total approximately USD 45 million for 2015
• Capacity upgrade and maintenance of USD 8-10 million, dependent on clients configuration request
• Processing 2015, USD 3-5 million
Dolphin – detailed assumptions and guidance for 2015 (Official on 8 Jan 2015
Reiterated on18 Feb 2015)
34
www.dolphingeo.com
Financial Covenants* / fully compliant as per 31/12/2014
Definitions**
‘ NIBD = total interest bearing debt (including financial leasing) less free and available cash . Any new debt outside of the Loan Facility is included in NIBD by adding ¼ in each of the 4 subsequent quarters.
Loan Facility Bonds
Equity ratio • Total Equity/Total Assets • > 35% • > 35%
• NIBD’/ EBITDA
− Rolling 12 months
Gearing ratio • < 2.0 • NA
35 **All covenants measured quarterly on a consolidated basis
• Unrestricted cash
and equivalents
• USD > 15m • USD > 10m Liquidity
• EBITDA/Net Interest Cost
− Rolling 12 months
• > 3.25 • > 2.5 Interest cover
* Adjusted and valid from 31.12.14 as per amended Term Loan Facility
Working Capital • > 0 • NA • Positive Working Capital
www.dolphingeo.com
IBD with earliest major maturity in November 2016
36
Comments:
• DOLP01 and DOLP02 have USD swaps
• Term loans primarily to finance seismic equipment
• Financial leasing primarily for processing and business IT equipment
Debt Security Size Balance 31/12/14 Tenure Maturity Interest
Bond Dolp01 Unsecured NOK 400,000,000 USD 70,500,000 4 years Nov-16 3M Nibor + 775
Bond Dolp02 Unsecured NOK 500,000,000 USD 83,250,000 4 years Dec-17 3M Nibor + 750
Term Loan Secured USD 93,000,000 USD 58,166,667 Various tranches Jun-18 Libor + 400
Term Loan Secured USD 25,000,000 USD 22,500,000 2.5 years Nov-16 Libor + 400
Financial lease Secured USD 19,000,000 USD 8,303,621 Various Apr-19 Various, less than 5%
Grand total USD 242,720,288
See Note 7, NIBD, with Short-Term debt USD 38.5 million and Long-term debt USD 204.2 million