PGS ASA: Third Quarter 2023 Results
26 Octobre 2023 - 7:00AM
PGS ASA: Third Quarter 2023 Results
Strong MultiClient Pre-funding
Performance Establishing the Premier Energy Data
Company
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
OutlookAs 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 $253 million, respectively.
Consolidated Key Financial Figures (In millions of
US dollars, except per share data) |
Quarter ended September 30, |
Year to date September 30, |
Year ended December 31, |
2023 |
2022 |
2023 |
2022 |
2022 |
|
|
|
|
|
|
Segment reporting |
|
|
|
|
|
Produced Revenues |
184.8 |
216.5 |
543.4 |
566.6 |
817.2 |
Produced EBITDA |
125.7 |
116.1 |
310.4 |
301.6 |
446.7 |
Produced EBIT ex impairments and other charges, net |
20.5 |
32.6 |
24.1 |
51.3 |
108.8 |
|
|
|
|
|
|
Profit and loss numbers, As Reported |
|
|
|
|
|
Revenues and Other Income |
157.3 |
198.5 |
456.4 |
608.4 |
825.1 |
EBIT ex. impairment and other charges, net |
11.7 |
33.8 |
20.7 |
71.2 |
117.1 |
Net financial items |
(17.3) |
(28.1) |
(78.0) |
(81.5) |
(112.7) |
Income (loss) before income tax expense |
(5.6) |
7.5 |
(63.5) |
(8.6) |
(6.7) |
Income tax expense |
(1.2) |
(4.9) |
(11.4) |
(19.2) |
(26.1) |
Net income (loss) to equity holders |
(6.8) |
2.6 |
(74.9) |
(27.8) |
(32.8) |
Basic earnings per share ($ 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.
****
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.
- Q3 2023 Earnings Release
- Q3 2023 Presentation
PGS ASA (TG:PGS1)
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