Good Contract and Cash Flow Performance
Highlights Q3 2014
- Revenues of $394.2 million, compared to $365.6 million in Q3 2013
- EBITDA of $181.7 million, compared to $216.0 million in Q3 2013
- EBIT, excluding impairments, of $77.5 million, compared to $108.3 million in Q3 2013
- Group EBIT margin, excluding impairments, of 20%, compared to 30% in Q3 2013
- Cash flow from operations of $230.7 million, compared to $189.4 million in Q3 2013
- Strong balance sheet with $470.4 million liquidity reserve
- EPS of $0.04, compared to $0.35 in Q3 2013
- Bought back own shares for $4.9 million
- Sold Pacific Explorer and decommissioned Nordic Explorer, while Atlantic Explorer is rigged down to 2D - giving quarterly operational cost savings of approximately $10 million effective Q4 2014
- Cost reduction programs expanded and on track
LYSAKER (OSLO), Norway, Oct. 23, 2014 (GLOBE NEWSWIRE) -- "We have during Q3 experienced deteriorating market conditions, including a weakening of the oil price. The cautious spending behaviour among oil companies continues to negatively impact bidding, pricing and utilization. Despite the challenging market environment we have delivered solid marine contract performance. The benefits of attractive rates secured well in advance and good production levels drove a significant improvement in marine contract EBIT margins from the first half of the year, rising to 27%.
However, in MultiClient we experienced lower sales than expected. The shortfall is primarily due to lack of pre-funding from the Triton MultiClient survey in the Gulf of Mexico.
Subsequent to Q3 we have signed up the first Triton pre-funding. This combined with a well pre-funded portfolio of other MultiClient projects, and the visibility we have with 90% of Q4 capacity already booked, although at lower rates, forms the basis for our projected Q4 earnings. The main uncertainty for the full year now relates to MultiClient late sales. Considering the weaker market we adjust our full year EBITDA guidance to approximately $725 million."
Jon Erik Reinhardsen,
President and Chief Executive Officer
Key Financial Figures
(In USD millions, except per share data)
|EBITDA (as defined, see note 1)||181.7||216.0||490.9||627.9||828.9|
|EBIT ex. impairment charges||77.5||108.3||177.9||315.7||397.1|
|EBIT as reported||52.5||108.3||143.9||315.7||382.1|
|Income before income tax expense||27.4||97.9||74.6||283.1||327.9|
|Net income to equity holders||8.4||74.2||42.7||208.2||238.3|
|Basic earnings per share ($ per share)||0.04||0.35||0.20||0.97||1.11|
|Diluted earnings per share ($ per share)||0.04||0.34||0.20||0.96||1.10|
|Net cash provided by operating activities||230.7||189.4||453.0||563.4||775.3|
|Cash investment in MultiClient library||70.4||120.9||286.3||262.0||373.0|
|Capital expenditures (whether paid or not)||53.1||93.2||334.4||364.5||437.8|
|Total assets (at period end)||3,685.5||3,511.2||3,685.5||3,511.2||3,544.3|
|Cash and cash equivalents (at period end)||90.4||299.0||90.4||299.0||263.8|
|Net interest bearing debt (at period end)||1,039.5||638.1||1,039.5||638.1||666.7|
|FOR DETAILS, CONTACT:|
Bård Stenberg, VP IR & Corporate Communications
Phone: +47 67 51 43 16
Mobile: +47 99 24 52 35
Petroleum Geo-Services ("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's 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.
PGS has a presence in 22 countries with regional centers in London, Houston and Singapore. Our headquarters is in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE:PGS).
For more information on Petroleum Geo-Services visit 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 2013. 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
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Source:Petroleum Geo-Services ASA