Norway: PGS Reports Record Late Sales Revenues

PGS, a Norwegian company specializing in seismic data acquisition and processing, today reported a strong EBITDA of $534.8 million for full year 2011. Total MultiClient revenues were $501.8 million, up 28% from 2010, with record late sales of $278.3 million.

The company’s 2011 net income overall was $33.7 million. The Order book grew 16% from Q4 2010 to $678 million

PGS, a company that owns 14 offshore seismic vessels and 21 data processing centers, also highlighted the launch of GeoStreamer GSTM – the only ghost free acquisition solution in the industry.

Jon Erik Reinhardsen, President and Chief Executive Officer commented: “Strong Q4 MultiClient late sales revenues offset the weak utilization and productivity for marine contract work in the quarter. Late sales revenues in 2011 were by far the best in PGS’ history. Europe, Middle East, and North and South America all delivered strong MultiClient revenues. West Africa will be an important region for us in 2012 as we have commenced a large MultiClient project covering five pre-salt blocks offshore Angola, further expanding our geographical footprint. Our focused MultiClient organization continues to deliver growth and improved results and will over time drive enhanced performance for the Company through the cycle.

Reinhardsen continued: “Incremental demand offshore Angola, the Gulf of Mexico and increased interest for Baffin Bay, Greenland and the Barents Sea have improved the supply/demand balance in the seismic market. We expect the North Sea marine contract market to be tighter this year with higher prices being achieved. Q1 will still be a challenging quarter impacted by steaming, idle time for lower end capacity and pressure on prices, as communicated earlier. Market activity has increased significantly over the last couple of months with bid activity close to early 2007 levels.”

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Offshore Energy Today Staff, February 20, 2012; Image: PGS