OSLO, Norway, Feb. 26, 2007 (PRIME NEWSWIRE) -- Petroleum Geo-Services ASA ("PGS" or the "Company") (Oslo:PGS) (NYSE:PGS) today announced its unaudited fourth quarter 2006 results under U.S. GAAP.
* Record earnings in 2006: Operating profit of $409.9 million, up $279.7 million (215%) compared to 2005. Revenues of $1,308.5 million, up $420.5 million (47%). Operating efficiency of fleet improved even further. Marine increased its revenues by 44% to $1,044.5 million, above $1 billion, for the first time ever. Onshore increased its revenues by $110.9 million, or 73% to $263.4 million. * Continued strength in Q4 2006: Operating profit of $117.5 million, the best quarter ever and up 100.6 million (595%) compared to Q4 2005. Revenues of $361.0 million, up $96.9 million (37%). * Strong Marine performance: Operating profit of $118.3 million in Q4 2006, up $94.5 million (397%) from Q4 2005 driven by strong pricing and performance in the contract segment, as well as lower multi-client amortization. Best Marine EBIT contract margin ever. * Strong profitability in Onshore: Operating profit of $6.8 million in Q4 2006, compared to a loss of $1.8 million in Q4 2005, positively impacted by increased activity and performance, especially in Libya. * Substantial cash flow: Cash flow from operations of $204.7 million. Net interest bearing debt reduced by $72.7 million to $195.5 million in Q4. Share buy back program approved at extraordinary general meeting in December 2006 and execution started in January 2007.
Key figures 1
Quarter ended Years ended
December 31, December 31,
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2006 2005 2006 2005
(In millions of Unaudited Unaudited Unaudited Unaudited
dollars, except
per share data)
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Revenues $ 361.0 $ 264.1 $ 1,308.5 $ 888.0
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Operating
profit/EBIT 117.5 16.9 409.9 130.2
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Income (loss)
before income tax
expense (benefit)
and minority
interest 116.2 (113.9) 356.1 (68.6)
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Net income (loss) 78.7 (89.0) 298.6 112.6
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Earnings (loss)
per share ($ per
share) 0.44 (0.49) 1.66 0.63
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Adjusted EBITDA
(as defined) 167.8 102.9 608.5 324.4
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Net cash provided
by operating
activities 204.7 66.7 563.4 280.7
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Cash investment
in multi-client
library 43.7 6.0 113.7 55.7
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Capital
expenditures 66.8 39.3 165.4 90.4
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Total assets
(period end) 1,234.6 1,717.6 1,234.6 1,717.6
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Cash and cash
equivalents
(period end) 124.0 121.5 124.0 121.5
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Net interest
bearing debt
(period end) $ 195.5 $ 828.7 $ 195.5 $ 828.7
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(1) Following the completion of the demerger and public offering of
Petrojarl on June 29, 2006, the Key figures reflects, for all
periods presented, a presentation of the operations of the
Production segment and the gain from sale of Petrojarl shares,
as discontinued operations. Total assets include Production
assets up to date of the demerger.
Svein Rennemo, PGS President and Chief Executive Officer, commented: "2006 was the best year ever for PGS. We delivered substantial growth in revenues, operating profit and cash flow, driven by strengthened market conditions and improved operational performance. Marine realized a record high contract margin, while Onshore improved its profitability significantly from 2005. We experienced a stronger underlying demand for multi-client seismic in 2006 compared to 2005 and despite fewer licensing rounds internationally we further improved our late sales. Our Gulf of Mexico depth processing products, strong performance of our library offshore West Africa and increased demand for our Brazil library were important elements in this success.
"We expect a continued strong seismic market driven by increased E&P spending worldwide and the demand for more advanced seismic solutions. Construction of the new Ramform Sovereign remains on budget and on time. Acquisition of the large wide azimuth multi-client survey in Gulf of Mexico, Crystal, is progressing according to plan. Both projects illustrate our efforts to increase high-end capacity and to provide our customers with more advanced seismic technology.
"Due to a substantial over performance on the business goals set for 2006, PGS has rewarded all our employees with a cash bonus equaling 1.5 months salary in recognition of their outstanding contribution. We look forward to an exciting 2007."
Q4 Highlights
PGS group
* Revenues of $361.0 million, up $96.9 million (37%) from Q4 2005, driven by record high Marine contract revenues and a significant increase in Onshore contract activity * Operating profit of $117.5 million, up $100.6 million (595%) from Q4 2005 * Income before income tax expense and minority interest of $116.2 million compared to a loss of $113.9 million in Q4 2005 (which included costs in relation to debt redemption and refinancing of $103.8 million) * Net income of $78.7 million, compared to a loss of $89.0 million in Q4 2005 (which included a net income from discontinued operations of $17.9 million and debt redemption and refinancing costs of $103.8 million) * Cash flow from operations of $204.7 million, up $138.0 million from Q4 2005 * Net interest bearing debt of $195.5 million at December 31, 2006, down $72.7 million in Q4, despite high levels of growth investments, driven by strong cash flow from operations
Marine
* Total revenues of $292.9 million, up $78.0 million (36%) from Q4 2005 * Contract seismic revenues of $189.6 million, up $58.8 million (45%) from Q4 2005 * Operating margin for Marine contract seismic around 49%, bringing full year contract margin above 40% * Multi-client late sales of $54.4 million, down $14.3 million (21%) from Q4 2005. Full year 2006 multi-client late sales were $222.0 million, up $3.2 million (1%) from 2005 * Multi-client pre-funding revenues of $32.7 million, up $27.4 million (517%) from Q4 2005 * Operating profit of $118.3 million, up $94.5 million (397%) from Q4 2005 * Order backlog at December 31, 2006 of $512 million compared to $365 million at December 31, 2005 and $635 million at September 30, 2006. The backlog number includes $175 million of committed pre-funding on scheduled multi-client projects
Onshore
* Revenues of $67.6 million, up $18.8 million (39%) from Q4 2005 * Operating profit of $6.8 million compared to a loss of $1.8 million in Q4 2005 * Performance improvement driven mainly by increased activity in Nigeria and Libya * Order backlog at December 31, 2006 of $138 million compared to $137 million at December 31, 2005 and $132 million at September 30, 2006
Outlook 2007
Marine
* Full year streamer contract EBIT margins are expected to increase substantially over 2006 to around 50-55% * Multi-client revenues are expected to be somewhat higher than 2006 * Multi-client investments are expected to be approximately $180-200 million * Capital expenditure is expected to be approximately $200 million
Onshore
* Revenues and operating profit are expected to be approximately in line with 2006 * Multi-client investments are planned to be approximately $60 million * Capital expenditure is expected to be in the range of $20-25 million
The full report with tables can be downloaded from the following link: http://hugin.info/115/R/1107694/199964.pdf