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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
Outlook
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.
±------------------------±--------------±--------------±-------------------+
| | | | |
| | | | |
| | Quarter ended | Year to date |Year ended December |
| | September 30, | September 30, | 31, |
| ±------±------±------±------±-------------------+
| | | | | | |
|Consolidated Key | | | | | |
|Financial Figures | | | | | |
|(In millions of US | | | | | |
|dollars, except per share| | | | | |
|data) | 2023 | 2022 | 2023 | 2022 | 2022 |
±------------------------±------±------±------±------±-------------------+
| | | | | | |
±------------------------±------±------±------±------±-------------------+
|Segment reporting | | | | | |
±------------------------±------±------±------±------±-------------------+
|Produced Revenues | 184.8| 216.5| 543.4| 566.6| 817.2|
±------------------------±------±------±------±------±-------------------+
|Produced EBITDA | 125.7| 116.1| 310.4| 301.6| 446.7|
±------------------------±------±------±------±------±-------------------+
|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|
±------------------------±------±------±------±------±-------------------+
|Total assets |1,766.3|1,719.5|1,766.3|1,719.5| 1,953.3|
±------------------------±------±------±------±------±-------------------+
|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:
https://channel.royalcast.com/landingpage/hegnarmedia/20231026_14/
Webcast YouTube link:
https://youtube.com/live/Bu8q4oI6CuU?feature=share
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 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.
Kilde
