• TEMA •
CEGAL BLUEBACK GROUP Amount in NOK thousand
CEGAL GROUP AS Interim Report Q3 2015
CEGAL GROUP AS, INTERIM REPORT Q3 2015
1
• TEMA •
CEGAL BLUEBACK GROUP Amount in NOK thousand
TABLE OF CONTENTS
Q3 2015 HIGHLIGHTS
3
SUMMARY OF THE QUARTER
4
FINANCIAL STATEMENTS
5
PROFORMA
9
OUR LOCATIONS
11
CEGAL GROUP AS, INTERIM REPORT Q3 2015
2
• Q3 2015 HIGHLIGHTS •
Q3 2015 HIGHLIGHTS
20
30
15
25
10
20
5
(Escape not included)
• 27 % revenue increase from Q3 2014 to Q3 2015 • 39 % revenue increase from Q3 2014 YTD to Q3 2015 YTD
CEGAL GROUP AS, INTERIM REPORT Q3 2015
-15
(Escape not included)
• 2 % EBITDA decrease from Q3 2014 to Q3 2015 • 1 % EBITDA increase from YTD Q3 2014 to YTD Q3 2015
Q114
0 Q315
-10 Q215
5 Q115
-5
Q414
Q315
Q215
Q115
Q414
Q314
Q214
Q114
0
0
10
Q314
50
15
Q214
100
Q114
150
Q315
35
Q215
200
Q115
EBIT MNOK
Q414
EBITDA MNOK
Q314
Operating revenue MNOK
Q214
cquisition of Escape Business Technologies A Ltd (“Escape”) in Aberdeen.
(Escape not included)
• EBIT affected by amortization of Goodwill and Software products allocation regarding the Blueback Reservoir transaction
3
• Q3 2015 IN BRIEF •
SUMMARY OF THE QUARTER
Financials (Figures in brackets refer to the corresponding period of 2014.) Revenues for the third quarter amounted to NOK 132.5 million (NOK 104.5 million), and EBITDA amounted to NOK 11.7 million (NOK 11.9 million). On a proforma basis, other operating costs in Q3 were reduced by 11 % compared to the same period last year. Cegal invested NOK 2.7 million (NOK 2.5 million) in development of new software products. By the end of the quarter, the numbers of employees were 331 (298), including 26 employees in Escape. Year to date revenues amounted to NOK 404.7 million (NOK 290.8 million), and EBITDA amounted to NOK 51.7 million (NOK 51.1 million). On a proforma basis, Cloud and Software Product revenues generated a year-on-year YTD revenue growth of 12 % and 29 % respectively. Software growth is partly driven by high renewal rates and a favorable currency effect. The robust growth within the core business areas Cloud and Software Product was partly offset by lower growth within other business areas. Operations Cegal signed and closed the acquisition of Escape Business Technologies Ltd (“Escape”) in Aberdeen on 30 September 2015. The transaction is part of Cegals plan to grow within the O&G sector in the UK and Escape will add local IT service skills to Cegals current Geoscience offering in Aberdeen. Cegal will now be able to provide a full service offering in the Aberdeen and UK area.
CEGAL GROUP AS, INTERIM REPORT Q3 2015
During Q3 2015 the Company signed, renewed or increased contracts with a total contract value of NOK 68.0 million. New contracts won during the quarter include two new GeoCloud customers with significant potential over the next years. Outlook With continued low and highly uncertain oil prices, market is expected to be challenging with increased cost focus and reduced capital expenditure in Cegals key customer segments. Although our core offering has proved resilient to changes in market climate, our customers’ cost reduction focus is expected to impact parts of Cegals business. In particular the G&G consulting area, but to some extent also software sales and upsale opportunities on existing contracts. Our investment in new products and services is expected to remain the same in the quarters to come. Also, Cegal has a strong and continuous focus on cost efficiency to increase future competitiveness and growth opportunities. The number of employees is expected to be steady in Q4 2015.
4
• TEMA •
CEGAL BLUEBACK GROUP Amount in NOK thousand
FINANCIAL STATEMENTS - Profit & loss - Balance sheet - Cash flow statement
CEGAL GROUP AS, INTERIM REPORT Q3 2015
5
• FINANCIAL STATEMENTS •
FINANCIAL STATEMENTS Amount in NOK million
PROFIT & LOSS
Unaudited
Unaudited
Third Quarter
Unaudited
Unaudited
YTD
Audited Year
2015
2014
2015
2014
2014
132,5
104,5
404,7
290,8
466,7
Cost of goods sold
39,4
29,8
109,4
88,9
141,0
Salaries
69,6
52,0
197,4
121,9
196,4
Other operating costs
11,8
10,8
46,2
28,9
49,9
EBITDA
11,7
11,9
51,7
51,1
79,4
Ordinary depreciation
18,8
11,7
54,6
27,4
43,1
Goodwill depreciation
6,8
5,3
20,4
14,1
20,5
-13,9
-5,1
-23,2
9,6
15,8
-1,8
-4,9
-10,9
-9,9
-6,0
-15,7
-9,9
-34,1
-0,3
9,8
-1,9
-1,2
-4,3
3,4
8,2
-13,8
-8,7
-29,8
-3,7
1,6
Operating revenue
EBIT Net financial items EBT (profit before tax) Tax Net profit
CEGAL GROUP AS, INTERIM REPORT Q3 2015
6
• FINANCIAL STATEMENTS •
FINANCIAL STATEMENTS Amount in NOK million
BALANCE SHEET
Unaudited 30.09.15
Unaudited 30.09.14
Audited 31.12.14
302,8
297,0
293,7
67,4
62,3
64,8
7,0
8,0
1,9
377,3
367,3
360,4
108,0
90,5
141,9
51,4
156,9
78,8
Total current assets
159,4
247,5
220,7
Total assets
536,7
614,8
581,1
1,2
1,2
1,2
Other equity
153,1
216,6
173,3
Total equity
154,4
217,8
174,5
Interest-bearing long-term liabilities
253,6
255,7
251,0
1,6
0,0
10,6
255,2
255,7
261,6
21,5
32,2
23,4
Other current liabilities
105,6
109,1
121,6
Total current liabilities
127,1
141,3
144,9
Total liabilities
382,3
396,9
406,6
Total equity and liabilities
536,7
614,8
581,1
Assets Intangible assets Tangible fixed assets Other financial fixed assets Total non-current assets Inventory Receivables Bank deposits, cash and similar
Equity and liabilities Paid-in capital
Other long-term liabilities Total non-current liabilities Interest-bearing current liabilities
CEGAL GROUP AS, INTERIM REPORT Q3 2015
7
• FINANCIAL STATEMENTS •
FINANCIAL STATEMENTS Amount in NOK million
CASH FLOW STATEMENT
Unaudited
Unaudited
Third Quarter
Unaudited
Unaudited
YTD
Audited Year
2015
2014
2015
2014
2014
-15,7
-9,9
-34,1
-0,3
9,8
Depreciation and write-downs
25,5
15,4
74,9
32,8
63,6
Change in net working capital
3,3
-3,5
9,9
-24,2
-38,2
13,1
2,0
50,7
8,3
35,1
-50,6
-2,5
-76,6
-32,8
-67,5
17,6
-30,4
-1,5
149,7
79,5
-19,9
-30,8
-27,4
125,2
47,1
Cash and cash equivalents at start of period
71,3
187,8
78,8
31,7
31,7
Cash and cash equivalents at end of period
51,4
156,9
51,4
156,9
78,8
Profit before tax
Net cash flow from operations Net cash flow from investment activities Net cash flow from financing activities Net change in cash and cash equivalents
CEGAL GROUP AS, INTERIM REPORT Q3 2015
8
• PROFORMA •
PROFORMA
(Figures in brackets refer to the corresponding period of 2014.)
25
10
20
5
-15
The Q3 2015 revenues were NOK 140.2 million (NOK 133.5 million). Revenues YTD 2015 were NOK 426.5 mill (NOK 401.2 mill), representing a 6 % increase.
CEGAL GROUP AS, INTERIM REPORT Q3 2015
Q315
-10
0 Q215
5 Q115
-5
Q414
Q315
Q215
Q115
Q414
Q314
Q214
Q114
0
0
10
Q314
50
15
Q214
100
Q114
150
EBITDA for Q3 2015 ended at NOK 13.3 million (NOK 14.6 million). YTD 2015 EBITDA ended at NOK 56.1 mill (NOK 57.2 mill), representing a 2 % decrease.
Q315
15
Q215
30
Q414
200
Q314
EBIT (proforma) MNOK
Q214
EBITDA (proforma) MNOK
Q114
Revenue (proforma) MNOK
Q115
The following figures represent the proforma figures for the merged Cegal Group, including Escape Business Technologies Ltd, from Q114 to Q315:
9
• PROFORMA •
UNAUDITED PROFORMA PROFIT & LOSS FOR CEGAL GROUP INCL./ESCAPE: Amount in NOK million
Unaudited
Unaudited
Third Quarter
Unaudited
Unaudited
YTD
Unaudited Year
2015
2014
2015
2014
2014
140,2
133,5
426,5
401,2
583,5
Cost of goods sold
41,3
35,5
114,9
106,8
160,6
Salaries
72,8
69,1
206,7
186,0
263,3
Other operating costs
12,8
14,4
48,8
51,1
72,9
EBITDA
13,3
14,6
56,1
57,2
86,8
Ordinary depreciation
18,8
12,8
54,8
36,7
52,0
Goodwill depreciation
6,8
5,3
20,4
14,0
27,4
-12,4
-3,4
-19,0
6,4
7,4
-1,9
-6,1
-11,1
-11,3
-6,3
-14,3
-9,6
-30,1
-4,9
1,2
-1,5
-1,0
-3,4
-0,3
7,5
-12,8
-8,6
-26,7
-4,6
-6,4
Operating revenue
EBIT Net financial items EBT (profit before tax) Tax Net profit
CEGAL GROUP AS, INTERIM REPORT Q3 2015
10
• TEMA •
CEGAL BLUEBACK GROUP
OUR LOCATIONS Amount in NOK thousand
STAVANGER Cegal AS & Cegal Geoscience AS Kanalvegen 11 4033 Stavanger Norway Tel: +47 52 04 00 00
OSLO Cegal AS & Cegal Geoscience AS Tordenskioldsgate 6. 4 etg. 0160 Oslo T: +47 52 04 00 00
LONDON Cegal Ltd Trident Court 1 Oakcroft Road Chessington Surrey, KT9 1BD T: +44 (0) 203 044 2799
ABERDEEN Cegal Ltd 14 Albyn Terrace Aberdeen, AB10 1YP United Kingdom T: +44 (0) 1224 630600
HOUSTON Cegal LLC 1160 Dairy Ashford Street Ste 600 Houston TX 77079
CALGARY Cegal Geoscience Inc. Bow Valley Square II #3300, 205 5th Avenue SW Calgary, AB Canada T2P 2V7
DUBAI Blueback Reservoir FZ-LLC Al Thuraya Tower 1, Office 208 Dubai Internet City P.O. Box 500156, Dubai, UAE
T: +1 832 327 5400 F: +1 281 619 7991
T: +1 403 538 4799 F: +1 403 264 1262
T: +971 4 4337471 F: +971 4 3607120
CEGAL GROUP AS, INTERIM REPORT Q3 2015
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