Order Book at Record Levels
July 25, 2008: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") today announced the best second quarter ever with an earnings before interest and tax ("EBIT") of $143.9 million, up $12.9 million compared to second quarter 2007. Record quarterly revenues of $465.1 million, were up $8.5 million from the previous record set in first quarter 2008. The order backlog has doubled in one year and is now at an all time high of $1,081 million, which is an excellent foundation for future earnings.
Record order book: For the first time in PGS' history as a focused geophysical company the order backlog exceeds $1 billion, reaching $1,081 million at end Q2 2008 up 19% from Q1 2008. Order backlog for Marine was $968 million and for Onshore $113 million. Tendering activity is also at record levels.
Strong revenue increase: Q2 revenues were $465.1 million, up $109.2 million (31%) compared to Q2 2007. EBIT was $143.9 million in Q2 2008, up $12.9 million (10%) compared to Q2 2007.
Marine: EBIT was $159.8 million in Q2 2008, up $30.5 million (24%) from Q2 2007, driven primarily by increased level of contract activity and increased capacity as a result of Ramform Sovereign entering the fleet, offset by lower productivity, especially in May due to streamer incidents and weather.
Onshore: EBIT was $0.6 million, down $5.4 million from Q2 2007, caused primarily by lower activity in North Africa, as communicated earlier.
Jon Erik Reinhardsen, President and Chief Executive Officer of PGS, commented:
"We deliver the strongest second quarter ever. Still, the outcome of the challenging operating environment in Q2 was not up to our expectations. We have since seen vessel productivity return to a normal level at the end of the quarter. Looking forward, the increasing demand for seismic services is reflected in our record order book, which now has surpassed one billion dollars for the first time."
|
Key Financial Figures
(In millions of dollars, except per share data) |
Quarter ended
June 30, |
Six months ended June 30, |
Year ended December 31, | ||
|
2008 |
2007 |
2008 |
2007 |
2007 | |
|
$ 465.1 |
$ 355.9 |
$ 921.6 |
$ 708.4 |
$1,519.9 | |
|
EBIT |
143.9 |
131.0 |
381.6 |
250.5 |
494.5 |
|
Income before income tax expense (benefit) |
135.6 |
128.9 |
364.5 |
246.9 |
458.7 |
|
Net income to equity holders |
98.0 |
83.4 |
254.0 |
181.8 |
470.0 |
|
Basic earnings per share ($ per share) |
0.56 |
0.47 |
1.44 |
1.02 |
2.65 |
|
Diluted earnings per share ($ per share) |
0.53 |
0.47 |
1.36 |
1.02 |
2.65 |
|
Adjusted EBITDA (as defined) |
219.6 |
199.2 |
450.4 |
383.8 |
800.8 |
|
Net cash provided by operating activities |
141.6 |
185.3 |
371.2 |
302.6 |
687.3 |
|
Cash investment in multi-client library |
66.4 |
78.6 |
149.3 |
136.3 |
288.7 |
|
Capital expenditures |
93.1 |
45.5 |
218.2 |
79.8 |
270.0 |
|
Total assets (period end) |
3,004.4 |
1,845.7 |
3,004.4 |
1,845.7 |
2,875.0 |
|
Cash and cash equivalents (period end) |
100.5 |
179.8 |
100.5 |
179.8 |
145.3 |
|
Net interest bearing debt (period end) |
$1,222.9 |
$ 483.2 |
$1,222.9 |
$ 483.2 |
$1,172.7 |
FOR DETAILS CONTACT:
Tore Langballe, SVP Corporate Communications
Phone: +47 67 51 43 75
Mobile: +47 90 77 78 41
Bård Stenberg, Investor Relations Manager
Phone: +47 67 51 43 16
Mobile: +47 99 24 52 35
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Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.
For more information on Petroleum Geo-Services visit www.pgs.com.
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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 2007. 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.
