April 14, 2021: Oslo, Norway, based on a preliminary review, PGS expects to
report Revenues and Other Income As Reported* according to IFRS for Q1 2021 of
approximately $166 million, compared to $128.8 million in Q1 2020.
Segment* Revenues and Other Income for Q1 2021 are expected to be approximately
$132 million, compared to $168.3 million in Q1 2020.
Contract revenues ended at approximately $26 million ($85.4 million in Q1
2020). Segment MultiClient pre-funding revenues were approximately $46 million
($40.7 million in Q1 2020), and MultiClient late sales revenues approximately
$49 million ($33.5 million in Q1 2020). Revenues and Other Income in Q1 2021
include approximately $6 million of US government grants.
The difference between As Reported revenues and Segment revenues relates to
MultiClient pre-funding where the As Reported MultiClient pre-funding revenues
for Q1 are expected to be approximately $80 million ($1.2 million in Q1 2020).
"I am pleased to see an increase of our MultiClient sales compared to Q1 2020
and a significant sequential improvement in vessel utilization. We continue to
experience a general recovery of demand and remain with the view that 2021 will
show improvement compared to 2020," says President & CEO Rune Olav Pedersen.
PGS routinely releases information about 3D vessel utilization after the end of
each quarter.
Summary of Q1 2021 vessel allocation:
+---------------------------------------+-----------+--------------------------+
| | | |
| | | |
|Approximate allocation of PGS operated | Quarter | |
|3D towed streamer capacity | ended | |
| | March 31, |Quarter ended December 31,|
+---------------------------------------+-----+-----+--------------------------+
| |2021 |2020 | 2020 |
+---------------------------------------+-----+-----+--------------------------+
|Contract seismic | 34% | 47% | 8% |
+---------------------------------------+-----+-----+--------------------------+
|MultiClient seismic |55% | 43% | 41% |
+---------------------------------------+-----+-----+--------------------------+
|Steaming | 7% | 9% | 13% |
+---------------------------------------+-----+-----+--------------------------+
|Yard | 0% | 1% | 3% |
+---------------------------------------+-----+-----+--------------------------+
|Stacked/Standby | 4% | 0% | 35% |
+---------------------------------------+-----+-----+--------------------------+
The Q1 2021 vessel statistics includes five vessels. All cold-stacked** vessels
are excluded from the statistics. The comparative period Q1 2020 is based on
eight vessels, while Q4 2020 is based on five vessels.
The Company provides this information based on a preliminary summary of Q1 2021
revenues. The Company has not completed its financial reporting and related
consolidation, review and control procedures, including the final review of all
sales against the established revenue recognition criteria. The estimates
provided in this release are therefore subject to change and the Q1 2021
financial statements finally approved and released by the Company may deviate
from the information herein.
PGS will release its Q1 2021 financial statements on Thursday April 22, 2021 at
approximately 8:00am Central European Summer Time (CEST). A corresponding
presentation is scheduled for 09:00am CEST the same day.
(*For the purpose of Segment reporting, MultiClient prefunding revenues are
recognized on a percentage of completion ("POC") basis, and the related
amortization of MultiClient library is based upon the ratio of aggregate
capitalized survey costs to forecasted sales. This differs from IFRS reporting
which recognizes revenue from MultiClient prefunding agreements and related
amortization at the "point in time" when the customer receives access to, or
delivery of, the finished data. For further description of the principles
applied, see details in the 2020 annual report under Segment disclosure page 68
and Alternative Performance Measures page 52. Adjustments between preliminary
IFRS and Segment revenue numbers for Q1 2021 are shown in the table below.)
(Revenue and Other Income, As Reported) ($166 million)
(Less Revenue for projects with IFRS performance obligations ($80 million)
met during Q1 for completed projects)
(Add Revenue recognized on a POC basis during Q1) ($46 million)
-------------------------------------------------------------------------------
(Segment Revenues and Other Income) ($132 million)
-------------------------------------------------------------------------------
(**The term "cold-stacked" is used when a vessel is taken out of operation for
an extended period of time. Costs are reduced to a minimum, with the vessel
preserved for a long idle time, all or most in-sea seismic equipment removed
from the vessel, and typically the Company does not have available crew to
operate the vessel.)
FOR DETAILS, CONTACT:
Bård Stenberg, VP IR & Corporate Communication
Mobile: +47 99 24 52 35
***
PGS ASA and its subsidiaries ("PGS" or "the Company") is a focused marine
geophysical company that provides a broad range of seismic and reservoir
services, including acquisition, imaging, interpretation, and field evaluation.
The Company MultiClient data library is among the largest in the seismic
industry, with modern 3D coverage in all significant offshore hydrocarbon
provinces of the world. The Company operates on a worldwide basis with
headquarters 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
(http://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 2020. 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.
--END--