Another Record Breaking Quarter
July 26, 2007: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") today announced its unaudited second quarter 2007 results under IFRS.
New record quarter: Operating profit of $131.0 million, up 39.9 million (44%) compared to Q2 2006. Revenues of $355.9 million, up $45.5 million (15%)
Marine: Operating profit of $129.3 million in Q2 2007, up $39.9 million (45%) from Q2 2006 mainly driven by improved contract margins
Onshore: Operating profit of $6.0 million in Q2 2007, down $0.4 million (6%) from Q2 2006, negatively impacted relocation of crews
Acquisition of MTEM: Acquired MTEM Limited, accelerating PGS' entry in the high growth market for electromagnetic ("EM") services used to detect the presence of hydrocarbons
New streamer technology: PGS launched its Next Generation Streamer technology improving efficiency and providing higher quality seismic data
Significant cash return to shareholders: Extraordinary dividend of NOK 10 per share (approximately $300 million) was approved by shareholders at the Annual General Meeting June 15, 2007, and paid July 10. The Company further used $90.1 million to repurchase shares during first half 2007
Debt refinancing: Completed debt refinancing with a total aggregate facility of $950 million giving the Company financial flexibility to pursue its strategy of growth
Key figures (IFRS)1
|
|
Quarter ended
June 30, |
Six months ended
June 30, |
Year ended December 31, |
|
(In millions of dollars,
except per share data) |
2007
Unaudited |
2006
Unaudited |
2007
Unaudited |
2006
Unaudited |
2006
Unaudited |
|
Revenues |
$ 355.9 |
$ 310.4 |
$ 708.4 |
$ 621.4 |
$ 1,308.4 |
|
Operating profit/
EBIT |
131.0 |
91.1 |
250.5 |
195.2 |
359.5 |
|
Income before income tax
expense (benefit) and
minority interests |
128.9 |
80.7 |
246.9 |
169.4 |
310.9 |
|
Net income to equity holders |
83.4 |
32.4 |
181.8 |
117.4 |
394.7 |
|
Basic earnings per share
($ per share) |
0.47 |
0.18 |
1.02 |
0.65 |
2.19 |
|
Diluted earnings per share
($ per share) |
0.47 |
0.18 |
1.02 |
0.65 |
2.19 |
|
Adjusted EBITDA (as defined) |
199.2 |
144.4 |
383.8 |
278.7 |
614.3 |
|
Net cash provided by
operating activities |
185.3 |
118.0 |
302.6 |
190.7 |
575.8 |
|
Cash investment in multi-
client library |
78.6 |
23.5 |
136.3 |
33.7 |
120.7 |
|
Capital expenditures |
45.5 |
37.8 |
79.8 |
57.3 |
165.4 |
|
Total assets (period end) |
1,845.7 |
1,319.7 |
1,845.7 |
1,319.7 |
1,369.3 |
|
Cash and cash equivalents
(period end) |
179.8 |
140.5 |
179.8 |
140.5 |
124.0 |
|
Net interest bearing debt
(period end) |
$ 483.2 |
$ 488.5 |
$ 483.2 |
$ 488.5 |
$ 195.5 |
[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.
Svein Rennemo, PGS President and Chief Executive Officer, commented:
"The second quarter was characterized by significant investments in attractive new multi-client seismic, further enhancing also future cash flows. We used 48% of our active vessel time acquiring new multi-client seismic with expected returns that compete favorably with the current strong marine contract seismic market.
The strength in the marine contract seismic market continued with a high level of bidding activity indicating continued market strength also in 2008. We achieved a record high contract EBIT margin of 53% for the second quarter, in line with our guidance of a margin between 50% and 55% for full year 2007.
As expected, Onshore was impacted by relocation of new crews in North Africa and lower seasonal activity in Alaska and Canada in the second quarter.
I am very pleased that we are also making substantial progress in executing our strategy of growth and technology differentiation.
The acquisition of the Scottish electromagnetic ("EM") technology company MTEM Limited in June will provide a quantum leap in our offering of EM services with a unique, breakthrough, cable-based EM-technology. PGS is the only player to offer a complete EM acquisition and processing technique both onshore and offshore.
We are on track towards deploying the first 4C fiber-optic seismic monitoring system for a permanent seabed installation based on unique PGS technology in deepwater Gulf of Mexico for Chevron later this year.
The launch of our Next Generation Streamer in June marks a step change in streamer technology. It is the only dual sensor towed marine streamer in the world and will provide enhanced resolution, better penetration and improved operational efficiency. We have already received several requests from oil companies wanting to use this technology."
Q2 Highlights
PGS group
Operating profit of $131.0 million, up $39.9 million (44%) from Q2 2006
Income before income tax expense of $128.9 million, up $48.2 million (60%) from Q2 2006
Net income to equity holders of $83.4 million, up $51.0 million (157%) from Q2 2006
Cash flow from operations of $185.3 million, up $67.3 million from Q2 2006
Cash investments in multi-client library of $78.6 million, up $55.1 million from Q2 2006
Capital expenditures of $45.5 million, compared to $37.8 million in Q2 2006
Net interest bearing debt of $483.2 million at June 30, 2007, up $257.4 million in Q2, primarily due to the acquisition of MTEM Limited where PGS paid $251.4 million, net in cash in Q2
$40.9 million used to repurchase own shares in Q2
Marine
Operating margin for Marine contract seismic was at an all time high level at around 53% compared to around 35% in Q2 2006
Contract seismic revenues of $141.0 million, down $2.2 million (2%) from Q2 2006. In Q2 2007, 52% of the active vessel time was used to acquire contract seismic, down from 90% in Q2 2006
Multi-client revenues of $132.6 million, up $42.1 million (47%) from Q2 2006 due to increased pre-funding revenues as a consequence of increased multi-client activity
Operating profit of $129.3 million, up $39.9 million (45%) from Q2 2006
Capital expenditures of $37.4 million, up $1.6 million compared to Q2 2006
Order backlog at June 30, 2007 of $438 million compared to $533 million at March 31, 2007. The backlog number includes $121 million of committed pre-funding on scheduled multi-client projects. The Company is in process of clarifying several significant Letters of Intent and significant contract awards, not included in the backlog as of end June, amounting to approximately $300 million
Onshore
Revenues of $66.5 million, up $4.3 million (7%) from Q2 2006
Operating profit of $6.0 million, down $0.4 million (6%) from Q2 2006 primarily due to relocation of crews
Order backlog at June 30, 2007 of $105 million compared to $135 million at March 31, 2007
Outlook 2007
Marine
Full year streamer contract EBIT margins are expected at around 50-55%
Multi-client revenues are expected to be significantly higher than 2006
Multi-client investments are expected to be approximately $200 million
Capital expenditure is expected to be approximately $200 million
Onshore
Revenues and operating profit expected to be approximately in line with 2006
Multi-client investments are expected to be approximately $65 million
Capital expenditure is expected to be in the range of $25-30 million
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FOR DETAILS, CONTACT: |
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Ola Bøsterud
Phone +47 67 52 64 00
Mobile: +47 90 95 47 43
Christopher Møllerløkken
Phone: +47 67 51 43 16
Mobile: +47 90 27 63 55
US Investor Services
Katrina Parrott
Phone: +1 281 509 8000
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