Third Quarter 2019 Results

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Strong Earnings Improvement in a Recovering Market

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Highlights Q3 2019

  • Segment Revenues of $234.2 million, compared to $192.1 million in Q3 2018
  • Segment EBITDA of $160.2 million, compared to $132.8 million in Q3 2018
  • Segment EBIT of $38.0 million, compared to a loss of $2.7 million in Q3 2018
  • Contract revenues of $76.3 million, compared to $34.3 million in Q3 2018
  • Segment MultiClient pre-funding revenues of $94.9 million, with a corresponding pre-funding level of 125%, compared to $95.7 million and 94% in Q3 2018
  • MultiClient late sales revenues of $53.9 million, compared to $56.0 million in Q3 2018
  • Cash flow from operations of $151.9 million, compared to $133.3 million in Q3 2018 
  • Order book of $336 million in Q3 2019, more than a doubling compared to Q3 2018
  • As reported revenues according to IFRS of $276.5 million and an EBIT of $50.3 million, compared to $163.4 million and an EBIT loss of $10.4 million in Q3 2018

“Our contract revenues more than doubled from Q2 2018 and continue to benefit from an improving market environment. For completed and secured 2019 work, our prices are on average close to 40% higher than the 2018 average.

We used a majority of our Q3 capacity on attractive and well pre-funded MultiClient projects in the North Atlantic region, as well as certain parts of Asia Pacific. Total MultiClient sales in Q3 were in line with our expectations. High sales from surveys in the processing phase contributed to a high pre-funding level in Q3, and brings our pre-funding expectation for the full year to be in the high-end of our targeted range of 80-120%.

Q3 was another quarter with strong utilization, and we experience significantly higher demand, compared to last year. Our order book is up sequentially, and we are confident in achieving good utilization for all eight active vessels during the coming winter season.”

Rune Olav Pedersen,

President and Chief Executive Officer


PGS expects the significant cash flow generation among clients and an increase in exploration and production spending, including offshore spending, to contribute to a continuing recovery of the marine seismic market fundamentals. Contract seismic is the activity currently benefitting the most from the improvement, driven by more 4D acquisition and generally higher demand for new proprietary seismic data.

Based on current operational projections, with eight vessels in operation through year-end, and with reference to disclosed risk factors, PGS expects full year 2019 gross cash costs of approximately $575 million.

2019 MultiClient cash investments are expected to be approximately $250 million.

Approximately 50% of 2019 active 3D vessel time is currently expected to be allocated to MultiClient acquisition.

Capital expenditure for 2019 is expected to be approximately $60 million.

The order book totaled $336 million at September 30, 2019 (including $102 million relating to MultiClient). The order book was $300 million at June 30, 2019 and $144 million at September 30, 2018.




Consolidated Key Financial Figures
(In USD millions, except per share data)

Quarter ended
September 30,

Year to date
September 30,

Year ended
December 31,





Profit and loss numbers Segment Reporting          
Segment Revenues 234.2 192.1 591.7 589.3 834.5
Segment EBITDA 160.2 132.8 361.9 361.3 515.9
Segment EBIT ex. Impairment and other charges, net 38.0 (2.7) 26.2 (11.7) 36.3
Profit and loss numbers As Reported          
Revenues 276.5 163.4 598.2 604.5 874.3
EBIT 50.3 (10.4) 0.4 13.0 39.4
Net financial items (12.9) (18.2) (66.7) (56.2) (87.3)
Income (loss) before income tax expense 37.4 (28.6) (66.3) (43.3) (47.9)
Income tax expense (5.9) (6.8) (16.3) (21.2) (40.0)
Net income (loss) to equity holders 31.5 (35.4) (82.6) (64.4) (87.9)
Basic earnings per share ($ per share) 0.09 (0.10) (0.24) (0.19) (0.26)
Other key numbers As Reported:          
Net cash provided by operating activities 151.9 133.3 379.5 328.6 445.9
Cash Investment in MultiClient library 75.7 101.9 203.5 236.9 277.1
Capital expenditures (whether paid or not) 10.2 14.1 40.9 26.4 42.5
Total assets 2,262.4 2,397.2 2,262.4 2,397.2 2,384.8
Cash and cash equivalents 36.0 44.4 36.0 44.4 74.5
Net interest bearing debt* 1,015.9 1,149.0 1,015.9 1,149.0 1,109.6
Net interest bearing debt, including lease liabilities following IFRS 16* 1,220.3   1,220.3    

*Following implementation of IFRS 16, prior periods are not comparable to September 2019.

A complete version of the Q3 2019 earnings release and earnings presentation can be downloaded from and


Bård Stenberg, SVP IR & Communication
Phone:  +47 67 51 43 16
Mobile:  +47 99 24 52 35

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 and the PGS share is listed on the Oslo stock exchange (OSE: PGS). For more information on PGS visit

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 2018. 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.

Contact Investor Relations

You are welcome to send us an email or call Bård Stenberg VP IR & Corporate Communications: +47 992 45 235