Arrow Prospectus - PGS

ARROW SEISMIC ASA – INITIAL PUBLIC OFFERING
The Group’s consolidated income was USD 9.6 million (2005: USD 0.5 million). The increase in income was
due to operations for twelve months compared to two months in 2005 and income from the vessel “CGG
Laurentian” (purchased 1 July 2006).
The operating costs was USD 6.0 million (2005: USD 0.1 million). The increase was due to operations for
twelve months compared to two months in 2005 and operation cost stemming from the purchased vessel “CGG
Laurentian” (from 1 July 2006). Total operating costs in 2005 mainly relates to administration expenses. Total
operating expenses in 2006 relates to operating expenses for the vessels, crew and catering expenses and
administrative expenses.
EBITDA was USD 3.6 million (2005: USD 0.4 million). The figures are not directly comparable for the same
periods in each year, due to operations for twelve months in 2006 compared to two months in 2005, rebuilding of
the vessel “Geo Atlantic” from Q1 (ending October 2006) and purchase of the vessel “CGG Laurentian” in July
2006.
The depreciation was USD 5.0 million (2005: USD 0.2 million). The increase is due to depreciation for twelve
months in 2006 compared to two months in 2005 and purchase of the vessel “CGG Laurentian” in July 2006
There was no depreciation on the newbuildings in 2005 and 2006.
Operating profit (EBIT) was USD -1.5 million (2005: USD 0.2 million)
Net financial expenses were USD -4.4 million (2005: USD -0.2 million) whereof USD 1.3 million (2005: USD
0.0 million) in unrealized currency loss. The exchange rate between USD and NOK will influence on the net
financial result as realised/unrealised currency gain (loss) on transactions and balances in foreign currency must
be calculated each quarter. In addition, the Group has foreign operations and foreign units which are translated at
the balance sheet date.
Net profit was USD -6.6 million (2005: USD 0.0 million).
Earnings per share and diluted earnings per share were both USD -0.376 (2005: 0.003).
Balance sheet
The Group’s book equity as of 31 December 2006 was USD 90.4 million (2005: USD 46.6 million), while total
assets were USD 162.4 million (2005: USD 83.1 million). The increase in assets during 2006 is mainly due to
that the Group has invested in vessels, newbuildings, financial assets and has increased trade receivables and
other current assets as part of the Group’s growth.
The Group’s liquidity in the form of bank deposits and interest-bearing securities was USD 20.0 million (2005:
USD 34.3 million).
Interest-bearing debt for the Group was USD 65.7 million (2005: USD 35.2 million) and the average rate of
interest payable on the loan portfolio was 6.02 % (2005: 5.3 %). The increase in interest-bearing debt relates to
the conversion of “Geo Atlantic” and the purchase of “CGG Laurentian”.
The short term borrowings include first year’s instalment on long-term debt. Long term debt was USD 65.7
million (2005: USD 35.2 million). Draw downs under long term agreements was USD 34.4 million and relates to
the conversion of the “Geo Atlantic” and the purchase of the “CGG Laurentian”. All debt is in USD while most
of the liquidity for the time being is kept in NOK.
The Group’s net debt per 31 December 2006, defined as interest-bearing debt less liquid assets, was USD 45.7
million (2005: USD 0.9 million).
Cash flow
The cash flow from operating activities was USD -3.9 million (2005: USD 0.8 million), cash flow from
investment activities USD -91.2 million (2005: USD -48.3 million), while cash flow from financing activities
was USD 80.9 million (2005: USD 81.8 million).
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