GlobeNewswire

PGS ASA: Second Quarter and Preliminary First Half 2021 Results

Share

Leveraging the Integrated Business Model

Takeaways Q2 2021

  • Segment Revenues and Other Income of $151.8 million, compared to $138.7 million in Q2 2020
  • Segment EBITDA of $84.4 million, compared to $99.1 million in Q2 2020
  • Segment EBIT (excluding impairments and other charges) loss of $4.2 million, compared to profit of $7.0 million in Q2 2020
  • Segment MultiClient pre-funding revenues of $28.6 million, with a corresponding pre-funding level of 111%, compared to $66.2 million and 102%, respectively, in Q2 2020
  • Cash flow from operations of $81.4 million, compared to $67.5 million in Q2 2020  
  • As Reported Revenues and Other Income according to IFRS of $185.9 million and an EBIT loss of $7.3 million, compared to $90.3 million and an EBIT loss of $82.2 million, respectively, in Q2 2020
  • Deployed two vessels to expand MultiClient coverage offshore Canada
  • Awarded 4D repeat survey by ExxonMobil offshore Guyana and a substantial MultiClient project in Malaysia in joint venture with TGS and WesternGeco
  • Further order book increase

“With our integrated business model we are well positioned to take advantage of a recovering market, which is trending towards more exploration in proven hydrocarbon basins and energy companies optimizing production from existing fields.

The increase of our MultiClient revenues was driven by sales in mature areas offshore Norway and the UK, where we have industry leading coverage with our GeoStreamer data. New MultiClient acquisition activity was modest in the quarter and focused on proven basins with strong client interest, securing a pre-funding level of 111% of capitalized cash investment.

We experience an increase in demand for new acquisition surveys. Most of the contract work in Q2 was for 4D projects. While we see continued price recovery, revenues were negatively impacted by challenging weather conditions during mobilization for several surveys.

Our order book was $255 million at quarter end, an increase of 65%, compared to Q2 last year. We are close to fully booked for Q3, we have good visibility for Q4 and encouraging indications of a positive start to 2022. Leads for new contract work are increasing and we expect this to materialize into healthy bidding activity in the second half of the year. The first bids for 2022 North Sea work are already in the market.

With a recovering seismic market, the current booked position and a healthy MultiClient sales leads basket we are increasingly confident that 2021 Segment revenues will be higher than last year.”

Rune Olav Pedersen,

President and Chief Executive Officer

Outlook
PGS expects the oil price level and the ongoing global recovery from the Covid-19 pandemic to continue to drive a gradual demand improvement for seismic services. Despite the impacts of the Covid-19 crisis, energy consumption is expected to continue to increase longer term with oil and gas remaining an important part of the energy mix as the global energy transition evolves. Offshore reserves will be vital for future energy supply and support demand for marine seismic services. The ongoing contract market recovery is likely to also benefit from fewer seismic vessels operating in the international market.

PGS expects full year 2021 gross cash costs to be approximately $425 million, an increase from approximately $400 million guided when entering the year due to increased activity level and higher fuel prices. The estimate is based on five 3D vessels in operation through 2021 and Ramform Vanguard in operation from Q2 and through most of Q4.

2021 MultiClient cash investments are expected to be approximately $150 million.

Approximately 45% of 2021 active 3D vessel time is expected to be allocated to MultiClient acquisition.

Capital expenditures for 2021 is expected to be approximately $40 million.

The order book totaled $255 million on June 30, 2021 (including $57 million relating to MultiClient). The order book was $237 million on March 31, 2021 and $155 million on June 30, 2020.







Consolidated Key Financial Figures
(In millions of US dollars, except per share data)





Quarter ended
June 30,




Year to date
June 30,


Year ended
December 31,


2021


2020


2021


2020


2020
Profit and loss numbers Segment Reporting
Segment Revenues and Other Income151.8138.7284.0307.0595.9
Segment EBITDA ex. other charges, net84.4    99.1168.5179.7397.7
Segment EBIT ex. impairment and other charges, net(4.2)    7.0(18.2)(8.8)12.2
Profit and loss numbers As Reported
Revenues and Other Income185.990.3351.7219.1512.0
EBIT(7.3)(82.2)(9.7)(162.3)(188.0)
Net financial items(16.2)(27.7)(49.8)(62.8)(118.4)
Income (loss) before income tax expense(23.5)(109.9)(59.5)(225.1)(306.4)
Income tax expense(2.5)(1.5)(5.7)(3.7)(15.1)
Net income (loss) to equity holders(26.0)(111.4)(65.2)(228.8)(321.5)
Basic earnings per share ($ per share)(0.07)(0.29)(0.17)(0.60)(0.85)
Other key numbers As Reported by IFRS:
Net cash provided by operating activities81.467.5170.0243.4366.5
Cash Investment in MultiClient library25.764.769.0132.4222.3
Capital expenditures (whether paid or not)11.34.017.516.336.1
Total assets1,946.22,207.81,946.22,207.82,093.8
Cash and cash equivalents155.4234.9155.4234.9156.7
Net interest-bearing debt954.5890.3954.5890.3937.6
Net interest-bearing debt, including lease liabilities following IFRS 161,093.61,059.1
1,093.6


1,059.1
1,096.2

A complete version of the Q2 2021 earnings release and presentation can be downloaded from www.newsweb.no and www.pgs.com.

The Q2 2021 audiocast can be accessed from this link:
https://channel.royalcast.com/landingpage/hegnarmedia/20210722_2/

Alternatively use the YouTube link to access the Q2 2021 audiocast:
https://youtu.be/zzw71bL1otc

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, carbon capture and 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 2020 and the Q1 2021 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.


Attachments

To 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

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire 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

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Equinor ASA: Information relating to dividend for second quarter 202128.7.2021 06:45:00 CEST | Press release

Key information relating to the cash dividend to be paid by Equinor (OSE: EQNR, NYSE: EQNR) for second quarter 2021. Dividend amount: 0.18 Declared currency: USD Last day including rights New York Stock Exchange (NYSE): 9 November 2021 Ex-date NYSE: 10 November 2021 Last day including rights Oslo Børs (Oslo Stock Exchange): 10 November 2021 Ex-date Oslo Børs: 11 November 2021 Record date NYSE and Oslo Børs: 12 November 2021 Payment date: 24 November 2021 Other information: Dividend per share in NOK will be communicated 18 November 2021. This information is published in accordance with the requirements of the Continuing Obligations. This information is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act

Equinor ASA: Informasjon angående utbytte for andre kvartal 202128.7.2021 06:45:00 CEST | Pressemelding

Nøkkelinformasjon vedrørende kontantutbytte for Equinor (OSE: EQNR, NYSE: EQNR) for andre kvartal 2021. Utbyttebeløp: 0,18 Annonsert valuta: USD Siste dag inclusive, New York Stock Exchange (NYSE): 9. november 2021 Ex-dato NYSE: 10. november 2021 Siste dag inklusive, Oslo Børs: 10. november 2021 Ex-dato Oslo Børs: 11. november 2021 Record date (eierregisterdato) NYSE og Oslo Børs: 12. november 2021 Betalingsdato: 24. november 2021 Øvrig informasjon: Utbytte i NOK per aksje vil bli kommunisert 18. november 2021. Denne informasjonen offentliggjøres i henhold til kravene i Løpende forpliktelser. Denne opplysningen er informasjonspliktig etter verdipapirhandelloven §5-12.

Equinor second quarter 2021 results28.7.2021 06:44:00 CEST | Press release

Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of USD 4.64 billion and USD 1.58 billion after tax in the second quarter of 2021. IFRS net operating income was USD 5.30 billion and the IFRS net income was USD 1.94 billion. The second quarter of 2021 was characterised by: Strong results due to higher prices, sustained value focus and strict capital discipline.Solid operational performance and progress in the project portfolio, some projects impacted negatively by Covid-19.Strong cash flow and significant improvement of adjusted net debt ratio(1) to 16.4%.Cash dividend of USD 0.18 per share and launch of share buy-back programme. “We deliver a strong result in the second quarter. Solid operational performance and continued focus on value creation have enabled us to capture additional value from higher commodity prices. Strict capital discipline and a net cash flow of more than USD 4.5 billion, reduce our net debt ratio to 16.4 percent and make us robust for volatility in commod

Equinors resultater for andre kvartal 202128.7.2021 06:44:00 CEST | Pressemelding

Equinor (OSE: EQNR, NYSE: EQNR) rapporterer et justert driftsresultat på 4,64 milliarder USD, og 1,58 milliarder USD etter skatt i andre kvartal 2021. Driftsresultatet i henhold til IFRS var 5,30 milliarder USD, og IFRS-resultatet var 1,94 milliarder USD. Andre kvartal 2021 var kjennetegnet av: Sterke resultater som følge av høyere priser, kontinuerlig fokus på verdiskaping og streng kapitaldisiplin.Solid operasjonell drift og framdrift i prosjektporteføljen, noen prosjekter negativt påvirket av Covid-19.Sterk kontantstrøm og betydelig forbedring av netto gjeldsgrad(1) til 16,4 %.Kontantutbytte på USD 0,18 per aksje, og lansering av program for tilbakekjøp av aksjer. – Vi leverer et sterkt resultat i andre kvartal. God operasjonell drift og kontinuerlig fokus på verdiskaping har gjort at vi skaper høyere verdi fra økte råvarepriser. Streng kapitaldisiplin og en netto kontantstrøm på mer enn 4,5 milliarder dollar, reduserer gjeldsgraden vår til 16,4 prosent og gjør oss robuste for volat

Verisk’s AIR Worldwide Estimates Insured Losses for July Floods in Germany Could Approach EUR 5 Billion28.7.2021 06:37:25 CEST | Press release

BOSTON, July 28, 2021 (GLOBE NEWSWIRE) -- Extreme event modeling firm AIR Worldwide estimates insured losses in Germany from July flooding could approach EUR 5 billion. AIR Worldwide is a Verisk (Nasdaq:VRSK) business. Low pressure system “Bernd” parked itself over central Europe and brought about significant flooding from July 13 to 18. Germany’s Rhineland-Palatinate and North Rhine-Westphalia regions were particularly affected, experiencing heavy and, in some cases, historic rainfall amounts, with the border region between the German states of Bavaria, Thuringia, and Saxony being affected by localized flooding as well. Impacted German rivers with notable gauge readings include the tributaries of the Mosel and Rhine rivers, some of which reached historically high levels. One area that was especially hard hit is the Ahr valley, which is named after the Ahr River, a left tributary of the Rhine River in Germany. All along the Ahr River, homes were flooded and bridges were broken; in the

Nikkiso Cryogenic Services Recommissioned Air Separation Plant in India for Critical Oxygen Supply28.7.2021 02:30:00 CEST | Press release

TEMECULA, Calif., July 27, 2021 (GLOBE NEWSWIRE) -- Nikkiso Cryogenic Industries’ Clean Energy & Industrial Gases Group (Group), a subsidiary of Nikkiso Co., Ltd (Japan), is proud to announce they have completed the recommissioning of an Air Separation plant in Patancheru, Hyderabad India. This project was done in coordination with the Telangana government (TEL), and Greenko Foundation (GKO). Due to the ongoing pandemic crisis in India, the Indian government initiated a directive to restart the operation and LOX production to meet the urgent demands for medical oxygen. GKO has taken the old shut-down Oxygen plant on rental basis from Air Water India Private Limited (AWI) for period of (2) two years. In May 2021, the Group partnered along with GKO in recommissioning of the plant. Nikkiso Cryogenic Services provided critical technical support and spare parts, including nozzle actuators and vibration components, and Nikkiso Cosmodyne India Pvt. Ltd. provided field service support. Critica

Invitation to DNO Q2 2021 Earnings Call28.7.2021 00:31:28 CEST | Press release

Oslo, 28 July 2021 – DNO ASA, the Norwegian oil and gas operator, will publish its Q2 2021 operating and interim financial results on 29 July 2021 at 07:00 (CEST). A videoconference call with executive management will follow at 15:00 (CEST). Please visit www.dno.no for login details. – For further information, please contact: Media: media@dno.no Investors: investor.relations@dno.no – DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, United Kingdom, Netherlands, Ireland and Yemen. – This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.