PGS Reports Q4 Profit

Petroleum Geo-Services (PGS), has bounced back in black in the fourth quarter ended December 31, 2019, as revenues hiked some 23 per cent from same time last year.

The Oslo-listed seismic player reported quarterly profit of $10.7 million, or 3 cents per share on revenues of close to $333 million, against loss of $23.5 million, or 7 cents per share on revenues of $270 million in the prior-year quarter.

For the full-year 2019, Norway-based PGS generated $931 million in revenues, compared to $874 million for the twelve months in 2018.

For the twelve months of 2019, PGS recognized net loss of close to $72 million, against $88 million loss in the prior year.

PGS secured order book of $322 million, up from $163 million compared to Q4 2018, but down $12 million sequentially.

PGS said it expects full year 2020 gross cash costs to be approximately $600 million. 2020 MultiClient cash investments are expected to be in the range of $250-275 million. Capex for 2020 is expected to be approximately $80 million.

“Our order book nearly doubled during 2019, compared to year-end 2018, improving visibility going into 2020. We expect seismic acquisition activity to continue to increase, supporting a further pricing increase for our services but not at the same pace as in 2019. Higher activity levels and a relentless focus on cost will position us well to improve cash flow further in 2020,” said Rune Olav Pedersen, president and CEO of PGS.

Subsea World News Staff