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2021-07-22

PGS ASA: Second Quarter and Preliminary First Half 2021 Results

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)
Författare GlobeNewswire

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