PGS Slips Deeper into Red

Norwegian seismic player, Petroleum Geo-Services (PGS), reported net loss for the first quarter ended March 31, 2017 of $106 million versus $57 million in the prior year.

PGS also recorded lower revenue of $155 million for the Q1 2017, compared to $203 million in the Q1 2016. This reflects a 40% reduction in total multi-client revenues.

“Our financial performance in Q1 2017 reflects the challenging winter season, with weak utilization, low prices for marine contract work and low MultiClient investment activity. However, our order book has increased sequentially by almost 60% to the highest level in two years. The increase is primarily due to more secured pre-funding for our MultiClient projects, and a higher volume of contract jobs combined with increased prices,” said Jon Erik Reinhardsen, president and CEO.

The Oslo-listed company secured order book of $340 million, up compared to $215 million at December 31, 2016 and $204 million a year ago.

The company recorded impairment charges of some $10 million for the quarter primarily relating to provision for onerous contracts.

PGC expects 2017 CAPEX at $150 million, of which approximately $87 million relates to the completion of Ramform Hyperion, paid in Q1 2017.

Subsea World News Staff