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2016-02-15

Petroleum Geo-Services ASA : Fourth Quarter and Preliminary Full Year 2015 Results

Resilient MultiClient Performance

Financial Position Further Strengthened

Highlights 2015

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* Revenues of $961.9 million, compared to $1,453.8 million in 2014
* EBITDA of $484.5 million, compared to $702.6 million in 2014
* EBITDA margin of 50% in 2015, compared to 48% in 2014, enabled by
substantial cost reductions of $318.5 million
* EBIT, excluding impairments and other charges, of $15.8 million, compared
to $177.3 million in 2014
* Cash flow from operations of $487.9 million, compared to $584.3 million in
2014
* Net interest bearing debt reduced by $53.8 million to $994.2 million and
liquidity reserve increased to $556.6 million
* MultiClient pre-funding revenues of $380.4 million with a corresponding
pre-funding level of 125%, compared to $290.7 million and 84% respectively
in 2014
* Impairment and loss on sale of assets of $397.2 million recorded in 2015,
reflecting the weak market

"Our MultiClient revenues in 2015 ended at $574.7 million. With capitalized
MultiClient cash investment of $303.3 million we achieved a
sales-to-investment ratio of 1.9 last year, an industry best. This highlights
the robustness of our MultiClient business contributing the most to our full
year EBITDA, which ended close to our latest guidance of approximately $500
million.

The marine seismic contract market deteriorated significantly during 2015 and
has become extremely challenging. In this uncertain market environment we
have during 2015 focused on cash flow and increased our liquidity reserve. We
have implemented substantial reductions of cost and capital expenditures,
taken proactive steps to address oversupply and further increased our
productivity leadership and fleet flexibility.

2016 will be another difficult year for the seismic industry. We continue to
focus on what we can control, including customer relations, costs,
maintaining a financially sound balance sheet and capitalizing on the
youngest and most productive fleet in the industry. Our fleet productivity
will further improve when we take delivery of theRamform Tethys
in late Q1. I am convinced PGS is well positioned to manage the challenging
market."

Jon Erik Reinhardsen,
President and Chief Executive Officer

Outlook

The low oil price and continued reduction in oil companies' spending continue
to impact seismic demand and pricing negatively. PGS expects market
uncertainty and low earnings visibility to continue through 2016.

Based on the current operational projections and with reference to disclosed
risk factors, PGS expects full year 2016 group cash cost of approximately
$725 million. This amount represents the sum of reported net operating
expenses (excluding depreciation, amortization, impairments and other
charges/(income)) and the cash operating costs capitalized as investments in
the MultiClient library.

MultiClient cash investments are expected to be approximately $250 million,
with a pre-funding level of approximately 100%.

Approximately 50% of active 3D vessel time is planned for MultiClient
acquisition.

Capital expenditures are estimated to be approximately $250 million, of which
approximately $180 million is for the new buildsRamform Tethys
andRamform Hyperion
. The increase compared to the original guidance of $240 million is primarily
due to cut off between 2015 and 2016, with 2015 ending correspondingly lower
than guidance.

The order book totaled $240 million at December 31, 2015 (including $116
million of committed pre-funding on MultiClient projects), compared to $245
million at September 30, 2015 and $410 million at December 31, 2014. As of
February 1, 2016 close to 100% of available capacity (which excludes stacked
vessels) for Q1 is booked, with corresponding numbers for Q2 2016, Q3 2016
and Q4 2016 being approximately 80%, 50% and 5%, respectively.

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| Key Financial Figures Quarter ended December 31, Year ended December 31, |
| |
|(In USD millions, except per share data) |
| 2015 2014 2015 2014 |
| Revenues 229.3 430.1 961.9 1 453.8 |
| EBITDA (as defined, see Note 13) 116.5 211.8 484.4 702.6 |
| EBIT ex. impairment and other charges (22.9) (0.2) 15.8 177.3 |
| EBIT as reported (332.9) (39.7) (430.4) 104.2 |
| Income before income tax expense (357.1) (58.0) (505.5) 16.7 |
| Net income to equity holders (334.6) (93.6) (527.9) (50.9) |
| Basic earnings per share ($ per share) (1.48) (0.44) (2.43) (0.24) |
| Net cash provided by operating activities 121.0 131.3 487.9 584.3 |
| Cash investment in MultiClient library 70.2 57.9 303.3 344.2 |
| Capital expenditures (whether paid or not) 41.7 36.9 165.7 371.3 |
| Total assets 2 914.1 3 563.0 2 914.1 3 563.0 |
| Cash and cash equivalents 81.6 54.7 81.6 54.7 |
| Net interest bearing debt 994.2 1 048.0 994.2 1 048.0 |
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The complete Q4 and preliminary full year 2015 results earnings release and
presentation can be downloaded fromwww.newsweb.noandwww.pgs.com.

FOR DETAILS CONTACT:

Bård Stenberg, VP IR&Corporate Communications

Phone: +47 67 51 43 16
Mobile: +47 992 45 235

****
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 19 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 2014. 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.

Q4 2015 Earnings Release
http://hugin.info/115/R/1986002/728525.pdf
Q4 2015 Presentation
http://hugin.info/115/R/1986002/728524.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Petroleum Geo-Services ASA via Globenewswire

HUG#1986002

Författare WKR

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