Petroleum Geo-Services ASA: Slow Start to 2017 - Significant Order Book Increase
April 20, 2017: Oslo, Norway, Petroleum Geo-Services ASA ("PGS" or "the Company").
Based on preliminary consolidated numbers, PGS expects to report revenues for Q1 2017 of approximately $155 million, with an EBITDA of approximately $30 million. The low EBITDA is primarily driven by the relatively low MultiClient investment activity in the quarter.
Total MultiClient revenues ended at approximately $80 million in Q1 2017. MultiClient pre-funding revenues constitute about half of this amount, representing well above 100% pre-funding on slightly above $30 million capitalized MultiClient cash investment in the quarter. Marine contract revenues ended at approximately $60 million.
The Company estimates the order book as of March 31, 2017 to be approximately $340 million, the highest level in two years and a significant increase compared to the $215 million reported as of end Q4 2016, and the $204 million at end Q1 2016. MultiClient represents approximately $200 million. The improved order book reflects an increase in secured pre-funding for scheduled MultiClient projects and an increase of volume and pricing of marine contract work.
"Our Q1 numbers are impacted by the challenging market conditions and low MultiClient investment activity. Despite the slow start to the year, I am pleased with the high MultiClient pre-funding level achieved in Q1 2017 which illustrates our continued ability to generate solid MultiClient projects and our investment discipline in this segment. The order book increase represents a strong positive shift which significantly improves revenue visibility and makes me increasingly confident that we will be able to deliver 2017 in accordance with our plan," says President & CEO, Jon Erik Reinhardsen.
The Company provides this information based on preliminary consolidated Q1 2017 numbers. The Company has not completed all review and control procedures relating to its quarterly reporting and significant evaluations have not yet been concluded. Such procedures could identify required adjustments to revenues, costs and/or the carrying value of assets or liabilities compared to the preliminary consolidated numbers. The estimates provided in this release are therefore subject to change and the Q1 2017 financial statements finally approved and released by the Company may deviate materially from the information herein.
The Company will present its Q1 2017 results on May 11, 2017.
|FOR DETAILS, CONTACT:|
| Bård Stenberg, VP IR & Corporate Communications |
Mobile: +47 99 24 52 35
Petroleum Geo-Services ("PGS" or "the Company") is a focused Marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company's MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. The Company operates on a worldwide basis with headquarters in Oslo, Norway.
PGS has a presence in 17 countries with regional centers in London, Houston and Kuala Lumpur. Our headquarters is in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE: PGS).
For more information on Petroleum Geo-Services visit www.pgs.com.
The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our multi-client data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2016. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and PGS disclaims any and all liability in this respect.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.