Petroleum Geo-Services Announces Slow Start To 2017 - Significant Order Book Increase

Announced Date :  Apr 21, 2017

Petroleum Geo-Services ASA ("PGS" or "theCompany"), based on preliminary consolidated numbers, PGS expects to report revenues for Q1 2017 of approximately $155 million, with an EBITDA of approximately $30 million. The low EBITDA is primarily driven by the relatively low MultiClient investment activity in the quarter.
Total MultiClient revenues ended at approximately $80 million in Q1 2017. MultiClient pre-funding revenues constitute about half of this amount, representing well above 100% pre-funding on slightly above $30 million capitalized MultiClient cash investment in the quarter. Marine contract revenues ended at approximately $60 million.

The Company estimates the order book as of March 31, 2017 to be approximately $340 million, the highest level in two years and a significant increase compared to the $215 million reported as of end Q4 2016, and the $204 million at end Q1 2016. MultiClient represents approximately $200 million. The improved order book reflects an increase in secured pre-funding for scheduled MultiClient projects and an increase of volume and pricing of marine contract work.

"Our Q1 numbers are impacted by the challenging market conditions and low MultiClient investment activity. Despite the slow start to the year, I am pleased with the high MultiClient pre-funding level achieved in Q1 2017 which illustrates our continued ability to generate solid MultiClient projects and our investment discipline in this segment. The order book increase represents a strong positive shift which significantly improves revenue visibility and makes me increasingly confident that we will be able to deliver 2017 in accordance with our plan," says President & CEO, Jon Erik Reinhardsen.

The Company provides this information based on preliminary consolidated Q1 2017 numbers. The Company has not completed all review and control procedures relating to its quarterly reporting and significant evaluations have not yet been concluded. Such procedures could identify required adjustments to revenues, costs and/or the carrying value of assets or liabilities compared to the preliminary consolidated numbers. The estimates provided in this release are therefore subject to change and the Q1 2017 financial statements finally approved and released by the Company may deviate materially from the information herein. 

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