PGS ASA: Third Quarter 2023 Results
Strong MultiClient Pre-funding Performance
Establishing the Premier Energy Data Company
Highlights Q3 2023
- Produced Revenues of $184.8 million, compared to $216.5 million in Q3 2022
- Produced EBITDA of $125.7 million, compared to $116.1 million in Q3 2022
- Produced EBIT (ex. Impairments and other charges, net) of $20.5 million, compared to $32.6 million in Q3 2022
- Revenues and Other Income according to IFRS of $157.3 million, compared to $198.5 million in Q3 2022
- Cash flow from operations of $117.6 million, compared to $177.9 million in Q3 2022
- Announced intention to merge with TGS to create the premier energy data company
- Successful completion of $40.6 million private placement
- $75 million new loan to prepay parts of the 2024 term loan B and extend debt maturity profile
- Completed acquisition of the first offshore wind site characterization survey and mobilized for new large contract in the US
“In Q3, most of our active 3D vessel capacity was allocated to attractive MultiClient programs in Europe, Brazil, Egypt and Malaysia. Pre-funding revenues of $101 million reflect strong interest for ongoing acquisition projects and significant sales from surveys in the processing phase, resulting in a pre-funding level of 144%.
MultiClient late sales fluctuate between quarters and ended below our expectations in Q3. The seismic market is improving, and we believe the increasing exploration focus will positively impact sales from our MultiClient library going forward.
Our New Energy business has successfully entered the offshore wind site characterization market this year. We completed our first offshore wind site characterization survey in Q3 and announced award of a large project in the US, where we have now commenced acquisition. Our Q3 contract revenues include approximately $6 million related to offshore wind. Seismic contract activity was modest in the quarter with only one 3D vessel on contract work. Approximately one month was used for acquisition of a carbon storage survey and the remaining two months for a 4D project under a framework agreement signed in 2021, with lower rates than in today’s market.
Our order book increased 28% sequentially. A major part of the increase is contract work with pricing for the winter season at similar levels as we experienced during the summer. We have now booked approximately 60% of our 3D vessel capacity for the first half next year.
In September we announced our intention to merge with TGS to establish the premier energy data company. We also, in concert with TGS, raised equity to position the capital structure. The merger plan is now agreed and each of PGS and TGS will shortly call for extraordinary shareholders’ meetings to vote on the merger. We expect that the merger will complete during the first half of 2024. The new combined company will be a complete, fully integrated service provider where clients will benefit from scale, a unique technology portfolio and premier service offering.”
Rune Olav Pedersen,
President and Chief Executive Officer
As the global energy transition evolves, PGS expects global energy consumption to continue to increase over the longer term with oil and gas remaining an important part of the energy mix. Offshore reserves will be vital for future energy supply and support demand for marine seismic services. The seismic market is improving on the back of increased focus on energy security, several years of low investment in new oil and gas supplies, and high oil and gas prices.
Offshore investments in oil and gas exploration and production are increasing in 2023. The seismic acquisition market is benefitting from the higher exploration and production spending, and a limited supply of seismic vessels.
PGS expects full year 2023 gross cash costs to be below $550 million.
2023 MultiClient cash investments are expected to be approximately $190 million.
Approximately 45% of 2023 active 3D vessel time is expected to be allocated to contract work.
Capital expenditures for 2023 is expected to be below $100 million.
The order book amounted to $437 million on September 30, 2023. On June 30, 2023, and September 30, 2022, the order book was $341 million and $253 million, respectively.
Consolidated Key Financial Figures
(In millions of US dollars, except per share data)
Year to date
Year ended December 31,
|Produced EBIT ex impairments and other charges, net||20.5||32.6||24.1||51.3||108.8|
|Profit and loss numbers, As Reported|
|Revenues and Other Income||157.3||198.5||456.4||608.4||825.1|
|EBIT ex. impairment and other charges, net||11.7||33.8||20.7||71.2||117.1|
|Net financial items||(17.3)||(28.1)||(78.0)||(81.5)||(112.7)|
|Income (loss) before income tax expense||(5.6)||7.5||(63.5)||(8.6)||(6.7)|
|Income tax expense||(1.2)||(4.9)||(11.4)||(19.2)||(26.1)|
|Net income (loss) to equity holders||(6.8)||2.6||(74.9)||(27.8)||(32.8)|
|Basic earnings per share ($ per share)||(0.01)||0.00||(0.08)||(0.05)||(0.06)|
|Other key numbers|
|Net cash provided by operating activities||117.6||177.9||351.4||284.9||371.3|
|Cash Investment in MultiClient library||70.4||33.7||148.1||81.4||106.4|
|Capital expenditures (whether paid or not)||12.6||9.5||65.3||44.6||50.2|
|Cash and cash equivalents||156.0||179.1||156.0||179.1||363.8|
|Net interest-bearing debt||571.4||773.0||571.4||773.0||616.7|
|Net interest-bearing debt, including lease liabilities following IFRS 16||654.8||861.6||654.8||861.6||703.9|
A complete version of the Q3 2023 earnings release and presentation can be downloaded from www.newsweb.no or www.pgs.com.
The webcast can be accessed from this link:
Webcast YouTube link:
|FOR DETAILS, CONTACT:|
Bård Stenberg, VP IR & Communication
Mobile: +47 99 24 52 35
PGS ASA and its subsidiaries (“PGS” or “the Company”) is an integrated marine geophysics company, which operates on a world-wide basis. PGS business supports the energy industry, including oil and gas, offshore renewables and carbon storage. The Company’s headquarter is in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE: PGS). For more information on PGS 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 2022 and the Q3 2023 earnings release. 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.
AttachmentsTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Aktietilbagekøb i Sydbank – transaktioner i uge 4911.12.2023 10:12:24 CET | pressemeddelelse
Selskabsmeddelelse nr. 43/2023 Peberlyk 4 DK-6200 Aabenraa Telefon +45 74 37 37 37 Telefax +45 74 37 35 36 Sydbank A/S CVR-nr. DK 12626509, Aabenraa sydbank.dk 11. december 2023 Aktietilbagekøb i Sydbank – transaktioner i uge 49 Sydbank offentliggjorde den 6. juli 2023 et aktietilbagekøbsprogram på 600 mio. kr. Aktietilbagekøbsprogrammet startede den 10. juli 2023 og vil være afsluttet senest den 31. januar 2024. Aktietilbagekøbsprogrammet sker med henblik på nedsættelse af aktiekapitalen i Sydbank og gennemføres efter bestemmelserne i Europa-Parlamentets og Rådets forordning (EU) nr. 596/2014 af 16. april 2014 og EU Kommissionens delegerede forordning (EU) 2016/1052 af 8. marts 2016, samlet kaldet Safe Habour-reglerne. Under aktietilbagekøbsprogrammet er gennemført følgende transaktioner: Antal aktierGennemsnitlig købskursTransaktions-værdi (kr.)Akkumuleret seneste meddelelse 1.678.800 532.188.278,0004. december 2023 05. december 2023 06. december 2023 07. december 2023 08. december 2
Sydbank share buyback programme: transactions in week 4911.12.2023 10:12:24 CET | Press release
Company Announcement No 43/2023 Peberlyk 4 6200 Aabenraa Denmark Tel +45 74 37 37 37 Fax +45 74 37 35 36 Sydbank A/S CVR No DK 12626509, Aabenraa sydbank.dk 11 December 2023 Dear Sirs Sydbank share buyback programme: transactions in week 49 On 6 July 2023 Sydbank announced a share buyback programme of DKK 600m. The share buyback programme commenced on 10 July 2023 and will be completed by 31 January 2024. The purpose of the share buyback programme is to reduce the share capital of Sydbank and the programme is executed in compliance with the provisions of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 and Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, collectively referred to as the Safe Harbour rules. The following transactions have been made under the share buyback programme: Number of sharesVWAPGross value (DKK)Accumulated, most recent Announcement 1,678,800 532,188,278.0004 December 2023 05 December 2023 06 December 2023 0
Prepayments (CK93) - Totalkredit A/S11.12.2023 10:05:00 CET | Press release
To the Nasdaq Copenhagen Prepayments (CK93) Pursuant to s 24 of the Danish Capital Markets Act, Totalkredit A/S hereby publishes prepayment data (CK93) as at 08 December 2023 in the attached file. Furthermore, the data will be distributed in the usual way through Nasdaq Copenhagen. Data on Nykredit and Totalkredit bonds is also available by ISIN code in Excel format on https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For further information about data format and contents, please refer to the Nasdaq website. Questions may be addressed to Morten Bækmand Nielsen, Head of Investor Relations, tel +45 44 55 15 21. Yours sincerely Totalkredit A/S Attachments Prepayments - Totalkredit A_S_11-12-2023eordindftk
Prepayments (CK93) - Nykredit Realkredit A/S11.12.2023 10:05:00 CET | Press release
To the Nasdaq Copenhagen Prepayments (CK93) Pursuant to s 24 of the Danish Capital Markets Act, Nykredit Realkredit A/S hereby publishes prepayment data (CK93) as at 08 December 2023 in the attached file. Furthermore, the data will be distributed in the usual way through Nasdaq Copenhagen. Data on Nykredit and Totalkredit bonds is also available by ISIN code in Excel format on https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For further information about data format and contents, please refer to the Nasdaq website. Questions may be addressed to Morten Bækmand Nielsen, Head of Investor Relations, tel +45 44 55 15 21. Yours sincerely Nykredit Realkredit A/S Attachments Prepayments - Nykredit Realkredit A_S_11-12-2023eordindf
Ekstraordinære indfrielser (CK93) - Totalkredit A/S11.12.2023 10:05:00 CET | pressemeddelelse
Til Nasdaq Copenhagen Ekstraordinære indfrielser (CK93) I medfør af kapitalmarkedsloven § 24 offentliggør Totalkredit A/S hermed oplysninger om ekstraordinære indfrielser (CK93) pr. den 8. december 2023 i vedhæftede fil. Oplysningerne vil endvidere på sædvanlig måde blive formidlet via Nasdaq Copenhagen. Oplysningerne findes også i excel-format i Nykredits obligationsdatabase på https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For yderligere informationer om dataformat og -indhold henvises til Nasdaqs hjemmeside. Spørgsmål kan rettes til head of investor relations Morten Bækmand Nielsen på tlf. 44 55 15 21. Med venlig hilsen Totalkredit A/S Vedhæftede filer Ekstraordinære indfrielser - Totalkredit A_S_11-12-2023eordindftk