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- Segment Revenues and Other Income of $590.0 million, compared to $595.9
million in 2020, which included $38.8 million of Covid-19 related government
grants
- Segment EBITDA of $320.2 million, compared to $397.7 million in 2020,
impacted by a significant change of activity mix with less MultiClient and
more contract acquisition
- Segment EBIT loss (excluding impairments and other charges) of $54.6
million, compared to a profit of $12.2 million in 2020
- Cash flow from operations of $326.6 million, compared to $366.5 million in
2020
- Returning to positive net cash flow generation in 2021, with cash flow
before financing activities (interest payments and debt service) of $154.7
million for the full year
- As Reported Revenues and Other Income according to IFRS of $703.8 million
and an EBIT loss of $66.2 million, compared to $512.0 million and an EBIT
loss of $188.0 million, respectively, in 2020
- Leveraging PGS’ integrated business model in a market trending towards more
near-field exploration and 4D seismic
- Year over year order book improvement
- Established New Energy and made the first significant carbon capture and
storage (CCS) specific MultiClient sales
"The overall seismic market was weaker in 2021 than in 2020 and our peers
generally reported lower revenues. However, the market started to recover, and
we delivered higher revenues compared to 2020, when adjusting for Covid-19
related government grants received in 2020. The recovery is primarily driven by
more activity and improving prices in the contract market. We achieved a 42%
increase in our contract revenues.
Our clients are increasingly focusing on proven hydrocarbon areas and extracting
more resources from producing fields, which positively impacts demand for
proprietary contract work. Development of the MultiClient market has been more
mixed. Total industry MultiClient revenues and investments were down, compared
to 2020. However, it is encouraging to report the highest MultiClient revenues
in the industry. Our MultiClient pre-funding level was 105% and our late sales
increased by more than 30%, compared to 2020.
To position for changing customer behavior, we have revised and updated our
strategy. We will continue to develop our leading position in the near-field
exploration and production (4D) seismic markets. Further, to position PGS for
contribution in the ongoing energy transition we established our New Energy
business early 2021. We have identified CCS, offshore wind and marine minerals
as markets where we can use our expertise to solve industry challenges and build
a significant business. We have already made several CCS specific MultiClient
sales, and we are awarded two seismic acquisition surveys for important CCS
projects in 2022. With our strategic adjustments we are improving our
competitive position in a recovering seismic market.
The winter season has become more challenging than expected. However, going into
the summer season the activity level and our booked position is healthy and we
expect the market for contract work to continue improving.
We returned to generating positive net cash flow after debt service in 2021 and
we achieved a cash flow before financing activities of $155 million for the full
year 2021. The guided increase of gross cash cost and capital expenditures for
2022 reflects a higher planned activity level and we expect to continue to
improve cash flow generation from revenue increase compared to 2021.
The seismic market recovery in 2021 was slower than assumed in the business plan
we used for the debt rescheduling implemented to address the Covid-19 disruption
in 2020. We will proactively address this during the coming months and quarters
of 2022."
Rune Olav Pedersen,
President and Chief Executive Officer
Outlook
PGS expects global energy consumption 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 seismic market is slowly
recovering, and the positive trend is expected to continue in 2022 due to
increasing investments among energy companies. The seismic acquisition market is
also likely to benefit from low vessel supply operating in the international
market. In 2022 we expect to see an increasing demand for seismic acquisition
services related to carbon capture and storage projects.
For financing status and risk, see Note 11.
PGS expects full year 2022 gross cash costs to be approximately $450 million.
2022 MultiClient cash investments are expected to be approximately $125 million.
Approximately 65% of 2022 active 3D vessel time is expected to be allocated to
contract work.
Capital expenditures for 2022 is expected to be approximately $60 million.
The order book totaled $239 million on December 31, 2021 (including $32 million
relating to MultiClient). On September 30, 2021, and December 31, 2020, the
order book was $241 million and $202 million, respectively.
±--------------------------------------------±--------------±---------------+
| | | |
| | | |
| | | |
| | | |
| | Quarter ended | Year ended |
| | December 31, | December 31, |
|Consolidated Key Financial Figures ±------±------±------±-------+
|(In millions of US dollars, except per share | | | | |
|data) | 2021 | 2020 | 2021 | 2020 |
±--------------------------------------------±------±------±------±-------+
|Profit and loss numbers Segment Reporting | | | | |
±--------------------------------------------±------±------±------±-------+
|Segment Revenues and Other Income | 174.3| 172.8| 590.0| 595.9|
±--------------------------------------------±------±------±------±-------+
|Segment EBITDA ex. other charges, net | 96.1| 129.6| 320.2| 397.7|
±--------------------------------------------±------±------±------±-------+
|Segment EBIT ex. impairment and other | | | | |
|charges, net | 3.0| 20.4| (54.6)| 12.2|
±--------------------------------------------±------±------±------±-------+
| | | | | |
±--------------------------------------------±------±------±------±-------+
|Profit and loss numbers As Reported | | | | |
±--------------------------------------------±------±------±------±-------+
|Revenues and Other Income | 210.4| 207.7| 703.8| 512.0|
±--------------------------------------------±------±------±------±-------+
|EBIT | (26.5)| (21.6)| (66.2)| (188.0)|
±--------------------------------------------±------±------±------±-------+
|Net financial items | (18.5)| (31.3)| (97.6)| (118.4)|
±--------------------------------------------±------±------±------±-------+
|Income (loss) before income tax expense | (45.0)| (52.9)|(163.8)| (306.4)|
±--------------------------------------------±------±------±------±-------+
|Income tax expense | (8.5)| (7.4)| (15.6)| (15.1)|
±--------------------------------------------±------±------±------±-------+
|Net income (loss) to equity holders | (53.5)| (60.3)|(179.4)| (321.5)|
±--------------------------------------------±------±------±------±-------+
|Basic earnings per share ($ per share) | (0.13)| (0.16)| (0.45)| (0.85)|
±--------------------------------------------±------±------±------±-------+
| | | | | |
±--------------------------------------------±------±------±------±-------+
|Other key numbers As Reported by IFRS: | | | | |
±--------------------------------------------±------±------±------±-------+
|Net cash provided by operating activities | 42.0| 57.1| 326.6| 366.5|
±--------------------------------------------±------±------±------±-------+
|Cash Investment in MultiClient library | 23.3| 33.0| 127.2| 222.3|
±--------------------------------------------±------±------±------±-------+
|Capital expenditures (whether paid or not) | 9.7| 11.4| 33.4| 36.1|
±--------------------------------------------±------±------±------±-------+
|Total assets |1,792.8|2,093.8|1,792.8| 2,093.8|
±--------------------------------------------±------±------±------±-------+
|Cash and cash equivalents | 170.0| 156.7| 170.0| 156.7|
±--------------------------------------------±------±------±------±-------+
|Net interest-bearing debt | 936.4| 937.6| 936.4| 937.6|
±--------------------------------------------±------±------±------±-------+
|Net interest-bearing debt, including lease | | | | |
|liabilities following IFRS 16 |1,051.3|1,096.2|1,051.3|1,096.2 |
±--------------------------------------------±------±------±------±-------+
A complete version of the Q4 2021 earnings release and presentation can be
downloaded from www.newsweb.no or www.pgs.com.
The Q4 2021 audiocast can be accessed from this link:
https://channel.royalcast.com/landingpage/hegnarmedia/20220127_3/
Alternatively use the YouTube link to access the Q4 2021 audiocast:
PGS Audiocast Q4 2021 - YouTube
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 (http://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.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.
Kilde
