PGS sees ‘slow start to the year’

  • Business & Finance

Norwegian seismic acquisition specialist PGS expects to report revenues for 1Q 2017 of approximately $155 million, with an EBITDA of approximately $30 million.

This is based on preliminary consolidated numbers and PGS will present its first quarter 2017 results on May 11, 2017.

The low EBITDA is primarily driven by the relatively low Multi-Client investment activity in the quarter, the company said on Thursday.

Total Multi-Client revenues ended at approximately $80 million in 1Q 2017. MultiClient pre-funding revenues constitute about half of this amount, representing well above 100% pre-funding on slightly above $30 million capitalized Multi-Client cash investment in the quarter. Marine contract revenues ended at approximately $60 million.

The company estimates the order book as of March 31, 2017 to be approximately $340 million, the highest level in two years and a significant increase compared to the $215 million reported as of end 4Q 2016, and the $204 million at end Q1 2016. Multi-Client represents approximately $200 million. The improved order book reflects an increase in secured pre-funding for scheduled Multi-Client projects and an increase of volume and pricing of marine contract work.

President & CEO, Jon Erik Reinhardsen, said: “Our Q1 numbers are impacted by the challenging market conditions and low Multi-Client investment activity. Despite the slow start to the year, I am pleased with the high Multi-Client pre-funding level achieved in Q1 2017 which illustrates our continued ability to generate solid Multi-Client projects and our investment discipline in this segment.

“The order book increase represents a strong positive shift which significantly improves revenue visibility and makes me increasingly confident that we will be able to deliver 2017 in accordance with our plan.”

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