GeoStreamer® Increasing Earnings Momentum
Highlights Q3 2010
· Marine Contract EBIT margin of seasonally strong 25%, up from 14% in Q2
· Late sales of $50.6 million, up 97% from Q2
· MultiClient pre-funding rate of 139%, up from 66% in Q2
· Terminated NB 535 (PGS Artemis), with a corresponding impairment charge of $80 million
· EBITDA guidance maintained
"Higher Contract revenues, improved margins and stronger MultiClient sales have delivered an upturn in performance from Q2. Solid MultiClient pre-funding revenues are driven by strong interest in GeoStreamer®, and we intend to continue remapping the mature North Sea region with our game-changing streamer technology next year. Our geographically diverse MultiClient library and broad spectrum of MultiClient offerings have limited the extent to which we have been affected by the Macondo incident in the Gulf of Mexico.
We currently see an increase in market and bid activity, with good leads for late sales. We have secured a good start for next year with more than 70% of Q1 capacity already booked. For the remainder of 2010 we have good visibility for Marine contract and MultiClient pre-funding revenues with all of the capacity booked. "
Jon Erik Reinhardsen,
President and Chief Executive Officer
| Key Financial Figures (In USD millions, except per share data) | 3rd quarter | Nine months | Year 2009 | ||
| 2010 Unaudited | 2009 Unaudited | 2010 Unaudited | 2009 Unaudited | ||
| Revenues from continuing operations | 296.4 | 361.5 | 770.7 | 1,046.5 | 1,350.2 |
| EBITDA (as defined) | 131.0 | 170.2 | 301.8 | 530.6 | 672.1 |
| EBIT excluding impairment charges 2) | 52.3 | 105.1 | 92.4 | 341.4 | 386.9 |
| EBIT | (27.6) | 52.7 | 12.0 | 190.2 | 233.3 |
| Income (loss) before income tax expense | (28.1) | 68.4 | (40.5) | 198.2 | 228.1 |
| Net income (loss) to equity holders | (41.2) | 47.7 | (47.3) | 143.0 | 165.8 |
| Basic earnings per share ($ per share) | (0.21) | 0.24 | (0.24) | 0.77 | 0.88 |
| Diluted earnings per share ($ per share) | (0.21) | 0.24 | (0.24) | 0.77 | 0.88 |
| Net cash provided by operating activities | 60.5 | 163.8 | 239.8 | 517.3 | 676.1 |
| Cash investment in MultiClient library | 38.6 | 34.4 | 142.4 | 136.0 | 183.1 |
| Capital expenditures | 51.6 | 39.4 | 152.2 | 190.0 | 231.2 |
| Total assets (period end) | 2,653.9 | 3,011.5 | 2,653.9 | 3,011.5 | 2,929.4 |
| Cash and cash equivalents (period end) | 168.0 | 184.0 | 168.0 | 184.0 | 126.0 |
| Net interest bearing debt (period end) | 602.9 | 813.0 | 602.9 | 813.0 | 774.0 |
1) Financial information for the full year 2009 is derived from the audited financial statements as presented in the 2009 Annual Report.
2) Impairment charges of $79.9 million in Q3 2010, $80.4 million YTD Q3 2010, $52.4 million in Q3 2009, $151.2 million YTD Q3 2009 and $153.6 million for the full year 2009.
Complete Q3 2010 earnings release can be downloaded from www.newsweb.no or www.pgs.com.
| 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 US Investor Services Phone: +1 281 509 8712 |
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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 MultiClient 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 MultiClient 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 2009. 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.
