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Third Quarter 2020 Results

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Actively Addressing a Challenging Market - Refinancing Progressing According to Plan

View results | View presentation | Audio webcast

Takeaways Q3 2020

  • Segment Revenues of $116.1 million, compared to $234.2 million in Q3 2019
  • Segment EBITDA of $88.4 million, compared to $160.1 million in Q3 2019
  • Segment EBIT (excluding impairments and other charges) of $0.5 million, compared to $37.9 million in Q3 2019
  • Segment MultiClient pre-funding revenues of $50.4 million, with a corresponding pre-funding level of 89%, compared to $94.9 million and 125%, respectively, in Q3 2019
  • Cash flow from operations of $65.9 million, compared to $151.9 million in Q3 2019 
  • As reported revenues according to IFRS of $85.1 million and an EBIT loss of $4.3 million, compared to $276.5 million and EBIT of $50.3 million, respectively, in Q3 2019
  • Completed reorganization reducing annual gross cash cost by more than 33% to below $400 million
  • Recognized $23.2 million of government grants relating to the Covid-19 pandemic
  • Currently in default under loan agreements. Agreement with sufficient majority of lenders to prevent acceleration and to implement extension of maturities and debt amortization to September 2022 and beyond (see description in Note 11 in the Condensed Interim Consolidated Financial Statements)

“The widespread disruptions in the oil market and the significant reduction in energy companies’ 2020 budget continued to impact the seismic market in the third quarter. Our vessel utilization ended at 71%, of which a large majority was allocated to MultiClient. The standby time of 11% reflects the dramatic reduction of activity levels and challenge of securing acquisition projects into the winter season. However, we optimized vessel utilization from our integrated service offering by being agnostic to whether seismic acquisition is done as a contract job or a MultiClient project. We mix and match the two business models to get the best commercial value. During the third quarter we secured and executed on significant work programs originating from our portfolio of MultiClient prospects.

In August we started working in our new organization after a comprehensive reorganization to reduce cost and adapt to the disruptions caused by the Covid-19 pandemic. Including the vessel capacity reductions implemented in the first half of the year, our annualized gross cash cost is reduced from approximately $600 million to below $400 million.

To preserve liquidity and secure business continuity we have over the last months engaged and negotiated with our lenders. Towards the end of the quarter we announced an agreement in principle with a majority of them on main terms. I am pleased that we have now signed up with a sufficient majority of lenders and will proceed to swiftly implement the agreement on a consensual basis if we achieve 100% support from lenders. Alternatively the solution will be implemented by using a UK scheme of arrangement, for which we have support from the required super majority of lenders. No debt maturities and no scheduled debt amortization until September 2022, together with our substantial cost reductions, will improve our liquidity profile significantly and enable us to maneuver through these challenging times.

Going into the fourth quarter all our vessels are preparing for their next jobs, but we will incur some standby time. However, we expect higher revenues from vessel operations going forward. We have an acceptable leads basket for MultiClient data library sales and expect higher sales in the fourth quarter, compared to the average of the previous three quarters.”

Rune Olav Pedersen,

President and Chief Executive Officer


The revised and significantly lower 2020 investment plans among energy companies has significantly reduced demand for seismic services. A majority of the reduction is postponements to 2021 and beyond, in order for the energy companies to protect cash flow in a period where the Covid-19 pandemic has caused extreme disruptions in the oil market.

PGS believes it will take time for seismic demand to get back to pre-Covid 19 levels. However, combining the effects of potential pent-up demand, a more stable oil price through second half of 2020 and an expectation of higher oil prices in 2021, PGS believes in increasing activity levels through 2021. Despite the impacts of the Covid-19 crisis, energy consumption is expected to continue to increase in the future with oil and gas continuing to play an important role in the energy mix. Offshore reserves will be vital for future supply and support the demand for marine seismic services. The expected future recovery of the seismic industry is likely to benefit by the recent further industry capacity reductions.

Based on current operational projections, with five 3D vessels operated for the remaining part of 2020, and with reference to disclosed risk factors, PGS expects full year 2020 gross cash costs to be below $450 million, excluding severance and other restructuring costs of approximately $35 million.

2020 MultiClient cash investments are expected to be approximately $225 million.

Approximately 65% of 2020 active 3D vessel time is currently expected to be allocated to MultiClient acquisition.

Capital expenditure for 2020 is expected to be below $40 million.

The order book totaled $160 million at September 30, 2020 (including $52 million relating to MultiClient). The order book was $155 million at June 30, 2020 and $336 million at September 30, 2019.




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 116.1    234.2 423.1 591.7 880.1
Segment EBITDA ex. other charges, net 88.4    160.1 268.1 362.0 556.1
Segment EBIT ex. impairment and other charges, net 0.5    37.9  (8.3) 26.3 96.4
Profit and loss numbers As Reported          
Revenues 85.1  276.5 304.3 598.2 930.8
EBIT (4.3) 50.3  (166.6) 0.4 54.6
Net financial items, other (24.3)  (12.9)  (87.1)  (66.7) (92.2)
Income (loss) before income tax expense (28.6) 37.4  (253.7)  (66.3) (37.6)
Income tax expense (4.0)  (5.9)  (7.6)  (16.3) (34.1)
Net income (loss) to equity holders (32.6) 31.5  (261.3)  (82.6) (71.7)
Basic earnings per share ($ per share) (0.08) 0.09  (0.69)  (0.24) (0.21)
Other key numbers As Reported by IFRS:          
Net cash provided by operating activities 65.9 151.9 309.3 379.5 474.3
Cash Investment in MultiClient library 56.8 75.7 189.2 203.5 244.8
Capital expenditures (whether paid or not) 8.4 10.7 24.7 41.4 59.1
Total assets  2,137.8 2,262.4 2,137.8 2,262.4 2,301.7
Cash and cash equivalents 193.7 36.0 193.7 36.0 40.6
Net interest bearing debt 919.7 1,015.9 919.7 1,015.9 1,007.5
Net interest bearing debt, including lease liabilities following IFRS 16 1,078.8 1,220.3 1,078.8 1,220.3 1,204.6

A complete version of the Q3 2020 earnings release and presentation can be downloaded from and

The Q3 2020 audio cast can be accessed from this link:

Bård Stenberg, SVP IR & Communication
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 2019 and the Q3 2020 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.

Contact Investor Relations

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