Increasing Visibility
July 23, 2009: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") today announced resilient Q2 earnings, with adjusted EBITDA of $161.2 million and cash and cash equivalents of $168.1 million at the end of Q2, up 65% compared to end Q1. More importantly, the Company saw an increase in its Marine order book in June for the first month since August 2008, which is now at $559 million. Ramform- and GeoStreamer® vessels still earn margins at acceptable levels and visibility for Q4 is now good with close to 85% of fleet capacity committed for the remainder of 2009. The Company maintains its 2009 guidance.
§ Q2 2009 Group performance: Earnings before interest and tax depreciation and amortization ("EBITDA") of $161.2 million, down 27% compared to Q2 2008, driven primarily by reduced Marine contract revenues and lower Onshore MultiClient activity.
§ Marine: Revenues of $294.3 million and EBIT of $92.3 million, excluding the previously announced impairment charge relating to the sale of Geo Atlantic. Pre-funding revenues were $82.7 million in Q2, which is 146% of MultiClient cash investments.
§ Onshore: EBIT improved to $0.8 million in Q2 2009, from a loss of $10.5 million in Q1 2009, despite low MultiClient sales and lower activity levels in North America, North Africa and Peru. Onshore was positively impacted by good operations in Mexico.
§ Endorsement of GeoStreamer® technology: Momentum is building fast with substantial customer commitments for end 2009 as proof that the uniqueness of the technology is appreciated.
§ Sale of Geo Atlantic: Agreement to sell the vessel Geo Atlantic to GC Rieber for $58.0 million in cash. The positive effect on net debt will be reflected in Q3. In line with earlier announcements, the Company recorded a $48.1 million impairment charge in Q2 2009 relating to the sale.
§ $119 million private placement of shares: The Company strengthened its financial positions through a private placement in Q2.
§ Strong cash flow from operating activities: Cash flow from operating activities was $208.1 million, up 28% from Q2 2008. At end Q2 net interest bearing debt amounted to $962.1 million, down $179.4 million from previous quarter. Liquidity reserve at end Q2 amounted to $364 million.
§ Ramform Sterling delivered on time: The vessel was delivered June 30, and already has a full order book for 2009.
§ Guidance maintained: The Company maintains its guidance for full year 2009, including an expected full year Adjusted EBITDA of between $700-800 million, with capital expenditure guidance slightly reduced.
Jon Erik Reinhardsen, Chief Executive Officer and President of PGS, commented:
"June was the first month in three consecutive quarters to see an improved order book. This is due to increased interest and endorsement of the GeoStreamer® technology and the competitiveness of our high-end vessels. Still, we need to see further reduction in global streamer capacity to balance the market demand. Our modern, state-of-the-art and cost efficient fleet puts us in a favorable position compared to competition in the effort to preserve margins and generate cash in a challenging environment."
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Key Financial Figures
(In millions of dollars, except per share data) |
Quarter ended
June 30, |
Six months ended
June 30, |
Year ended December 31, | ||
|
2009
Unaudited |
2008
Unaudited |
2009
Unaudited |
2008
Unaudited |
2008
Audited 1) | |
|
$ 340.5 |
$ 465.1 |
$ 765.3 |
$ 921.6 |
$ 1,917.5 | |
|
Adjusted EBITDA (as defined) |
161.2 |
219.6 |
363.1 |
450.4 |
967.8 |
|
EBIT excluding special items 2) |
82.1 |
143.9 |
227.0 |
310.1 |
632.3 |
|
EBIT |
33.9 |
143.9 |
128.2 |
381.6 |
542.7 |
|
Income before income tax expense |
43.3 |
135.6 |
122.4 |
364.5 |
449.4 |
|
Net income to equity holders |
41.0 |
98.0 |
95.2 |
254.0 |
417.4 |
|
Basic earnings per share ($ per share) |
0.22 |
0.56 |
0.53 |
1.44 |
2.37 |
|
Diluted earnings per share ($ per share) |
0.22 |
0.55 |
0.53 |
1.42 |
2.36 |
|
Net cash provided by operating activities |
208.1 |
162.9 |
353.5 |
403.9 |
914.6 |
|
Cash investment in MultiClient library |
57.3 |
64.6 |
104.4 |
145.5 |
290.0 |
|
Capital expenditures |
60.8 |
91.5 |
156.1 |
210.9 |
450.6 |
|
Total assets (period end) |
3,132.4 |
3,004.4 |
3,132.4 |
3,004.4 |
3,064.8 |
|
Cash and cash equivalents (period end) |
168.1 |
100.5 |
168.1 |
100.5 |
95.2 |
|
Net interest bearing debt (period end) |
$ 962.1 |
$ 1,222.9 |
$ 962.1 |
$ 1,222.9 |
$ 1,135.6 |
Complete Q2 2009 earnings release can be downloaded at www.newsweb.no or www.pgs.com
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FOR DETAILS, CONTACT: |
|
Tore Langballe, SVP Corporate Communications
Phone: +47 67 51 43 75
Mobile: +47 90 77 78 41
Bård Stenberg, Investor Relations Manager
Phone: +47 67 51 43 16
Mobile: +47 99 24 52 35
US Investor Services
Phone: +1 281 509 8712 |
Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.
For more information on Petroleum Geo-Services visit www.pgs.com.
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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 2008. 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.
