Second Quarter and First Half 2017 Results

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Strong MultiClient Sales Further Cost Reductions Initiated

View results | View presentation | How to access the Q2 conference calls

Highlights Q2 2017

  • Revenues of $240.5 million, compared to $183.0 million in Q2 2016
  • EBITDA of $112.5 million, compared to $68.8 million in Q2 2016
  • EBIT, excluding impairments and other charges, a loss of $8.7 million, compared to a loss of $36.2 million in Q2 2016
  • MultiClient pre-funding revenues of $50.2 million with a corresponding pre-funding level of 115%, compared to $47.2 million and 113% in Q2 2016
  • MultiClient late sales of $77.4 million, compared to $46.0 million in Q2 2016
  • Cash flow from operations of $49.4 million, compared to $42.4 million in Q2 2016, with higher working capital from revenue increase in the second half of Q2 expected to benefit Q3 
  • Liquidity reserve of $228.3 million, compared to $273.8 million in Q1 2017 and $429.7 million in Q2 2016
  • Initiated capacity adjustment and other cost initiatives with estimated $50-60 million annual run rate cash cost saving from Q4
  • Commenced large MultiClient campaigns offshore East Canada with solid pre-funding
  • The Board of Directors is working according to the planned timeline for appointment of a new CEO. Announcement is expected early autumn

"The robust MultiClient late sales performance in Q2 was primarily driven by a diverse customer base in Europe and South America buying from our high quality GeoStreamer data library. The MultiClient acquisition activity focused on the North Sea and the Mediterranean. We experienced solid client interest, which combined with low unit cost from our high productivity Ramform vessels led to a pre-funding level of 115%. Our Marine contract revenues increased significantly in the quarter. We allocated a majority of the capacity to contract work and were, with strong operations, able to realize improved prices compared to last year.

The order book decreased sequentially primarily in the marine contract segment as expected, but is still higher than at the same time last year. In preparation for the coming winter season where there is uncertainty relating to especially Q4, we are planning to cold-stack the Ramform Vanguard after the North Sea season. The capacity adjustment and further cost reduction initiatives will result in annual run rate cash cost savings of $50-60 million with effect from Q4.

The first half of 2017 has played out in accordance with our expectations and within the scenarios we envisaged when we refinanced in Q4 2016. The successful refinancing combined with a significantly lower cost base make PGS well positioned to benefit from future market opportunities."

Jon Erik Reinhardsen,
President and Chief Executive Officer


PGS expects the improved cash flow among clients, combined with growing limitations on streamer availability in the industry, to benefit marine 3D seismic market fundamentals going forward. Increased seasonal variations will impact activity in the coming winter season. The Company expects the volume of marine 3D seismic acquired by the industry in 2017 to be in line with the volume acquired in 2016, but with a mix more focused on smaller and more capacity intensive 4D production monitoring surveys and more MultiClient 3D projects.

Based on the current operational projections and with reference to disclosed risk factors, PGS expects full year 2017 gross cash cost to be below $700 million.

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

Approximately 50% of the 2017 active 3D vessel time is expected to be allocated to MultiClient acquisition.

Capital expenditure for 2017 is expected to be approximately $150 million, of which approximately $89 million relates to Ramform Hyperion which was delivered in Q1 2017.

The order book totaled $248 million at June 30, 2017 (including $182 million relating to MultiClient), compared to $340 million at March 31, 2017 and $230 million at June 30, 2016.

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

 Quarter ended
June 30,
 Six months ended
June 30,
 Year ended
December 31,





Revenues 240.5 183.0 395.3 386.1 764.3
EBITDA 112.5 68.8 142.6 147.5 313.3
EBIT ex. impairment and other charges, net (8.7) (36.2) (92.2) (66.3) (137.5)
EBIT as reported (17.4) (44.6) (111.1) (76.1) (180.3)
Income (loss) before income tax expense (37.5) (57.7) (140.5) (119.6) (262.8)
Net income (loss) to equity holders (32.2) (51.8) (138.7) (108.7) (293.9)
Basic earnings per share ($ per share) (0.10) (0.22) (0.42) (0.46) (1.21)
Net cash provided by operating activities 49.4 42.4 79.4 175.8 320.9
Cash investment in MultiClient library 43.8 41.8 77.4 90.1 201.0
Capital expenditures (whether paid or not) 12.9 51.9 114.5 160.9 208.6
Total assets 2,860.1 2,970.3 2,860.1 2,970.3 2,817.0
Cash and cash equivalents 53.3 49.7 53.3 49.7 61.7
Net interest bearing debt 1,126.2 1,207.6 1,126.2 1,207.6 1,029.7

A complete version of the Q2 2017 earnings release and presentation can be downloaded from and


Bård Stenberg, VP IR & Corporate Communications
Phone:  +47 67 51 43 16
Mobile:  +47 99 24 52 35

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 17 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

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 2016. 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.

Contact Investor Relations

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