OSLO, Norway, July 26, 2007 (PRIME NEWSWIRE) -- Petroleum Geo-Services ASA ("PGS" or the "Company") today announced its unaudited second quarter 2007 results under IFRS.
* New record quarter: Operating profit of $131.0 million, up 39.9
million (44%) compared to Q2 2006. Revenues of $355.9 million, up
$45.5 million (15%)
* Marine: Operating profit of $129.3 million in Q2 2007, up $39.9
million (45%) from Q2 2006 mainly driven by improved contract
margins
* Onshore: Operating profit of $6.0 million in Q2 2007, down $0.4
million (6%) from Q2 2006, negatively impacted relocation of crews
* Acquisition of MTEM: Acquired MTEM Limited, accelerating PGS' entry
in the high growth market for electromagnetic ("EM") services used
to detect the presence of hydrocarbons
* New streamer technology: PGS launched its Next Generation Streamer
technology improving efficiency and providing higher quality seismic
data
* Significant cash return to shareholders: Extraordinary dividend of
NOK 10 per share (approximately $300 million) was approved by
shareholders at the Annual General Meeting June 15, 2007, and paid
July 10. The Company further used $90.1 million to repurchase shares
during first half 2007
* Debt refinancing: Completed debt refinancing with a total aggregate
facility of $950 million giving the Company financial flexibility to
pursue its strategy of growth
Key figures (IFRS)(1)
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Quarter ended Six months ended Year ended
(In millions of June 30, June 30, Dec. 31,
dollars, --------------------------------------------------
except per 2007 2006 2007 2006 2006
share data) Unaudited Unaudited Unaudited Unaudited Unaudited
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Revenues $ 355.9 $ 310.4 $ 708.4 $ 621.4 $ 1,308.4
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Operating profit/
EBIT 131.0 91.1 250.5 195.2 359.5
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Income before
income tax expense
(benefit) and
minority interests 128.9 80.7 246.9 169.4 310.9
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Net income to equity
holders 83.4 32.4 181.8 117.4 394.7
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Basic earnings per
share ($ per share) 0.47 0.18 1.02 0.65 2.19
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Diluted earnings per
share ($ per share) 0.47 0.18 1.02 0.65 2.19
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Adjusted EBITDA (as
defined) 199.2 144.4 383.8 278.7 614.3
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Net cash provided by
operating
activities 185.3 118.0 302.6 190.7 575.8
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Cash investment in
multi-client
library 78.6 23.5 136.3 33.7 120.7
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Capital expenditures 45.5 37.8 79.8 57.3 165.4
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Total assets (period
end) 1,845.7 1,319.7 1,845.7 1,319.7 1,369.3
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Cash and cash
equivalents
(period end) 179.8 140.5 179.8 140.5 124.0
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Net interest bearing
debt (period end) $ 483.2 $ 488.5 $ 483.2 $ 488.5 $ 195.5
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(1) Following the completion of the demerger and public offering of Petrojarl on June 29, 2006, the Key figures reflects, for all periods presented, a presentation of the operations of the Production segment and the gain from sale of Petrojarl shares, as discontinued operations.
Svein Rennemo, PGS President and Chief Executive Officer, commented:
"The second quarter was characterized by significant investments in attractive new multi-client seismic, further enhancing also future cash flows. We used 48% of our active vessel time acquiring new multi-client seismic with expected returns that compete favorably with the current strong marine contract seismic market.
"The strength in the marine contract seismic market continued with a high level of bidding activity indicating continued market strength also in 2008. We achieved a record high contract EBIT margin of 53% for the second quarter, in line with our guidance of a margin between 50% and 55% for full year 2007.
"As expected, Onshore was impacted by relocation of new crews in North Africa and lower seasonal activity in Alaska and Canada in the second quarter.
"I am very pleased that we are also making substantial progress in executing our strategy of growth and technology differentiation.
"The acquisition of the Scottish electromagnetic ("EM") technology company MTEM Limited in June will provide a quantum leap in our offering of EM services with a unique, breakthrough, cable-based EM-technology. PGS is the only player to offer a complete EM acquisition and processing technique both onshore and offshore.
"We are on track towards deploying the first 4C fiber-optic seismic monitoring system for a permanent seabed installation based on unique PGS technology in deepwater Gulf of Mexico for Chevron later this year.
"The launch of our Next Generation Streamer in June marks a step change in streamer technology. It is the only dual sensor towed marine streamer in the world and will provide enhanced resolution, better penetration and improved operational efficiency. We have already received several requests from oil companies wanting to use this technology."
Q2 Highlights
PGS group
* Revenues of $355.9 million, up $45.5 million (15%) from Q2 2006 * Operating profit of $131.0 million, up $39.9 million (44%) from Q2 2006 * Income before income tax expense of $128.9 million, up $48.2 million (60%) from Q2 2006 * Net income to equity holders of $83.4 million, up $51.0 million (157%) from Q2 2006 * Cash flow from operations of $185.3 million, up $67.3 million from Q2 2006 * Cash investments in multi-client library of $78.6 million, up $55.1 million from Q2 2006 * Capital expenditures of $45.5 million, compared to $37.8 million in Q2 2006 * Net interest bearing debt of $483.2 million at June 30, 2007, up $257.4 million in Q2, primarily due to the acquisition of MTEM Limited where PGS paid $251.4 million, net in cash in Q2 * $40.9 million used to repurchase own shares in Q2
Marine
* Total revenues of $290.0 million, up $41.3 million (17%) from Q2 2006 despite using 42% less of active capacity to acquire contract seismic * Operating margin for Marine contract seismic was at an all time high level at around 53% compared to around 35% in Q2 2006 * Contract seismic revenues of $141.0 million, down $2.2 million (2%) from Q2 2006. In Q2 2007, 52% of the active vessel time was used to acquire contract seismic, down from 90% in Q2 2006 * Multi-client revenues of $132.6 million, up $42.1 million (47%) from Q2 2006 due to increased pre-funding revenues as a consequence of increased multi-client activity * Operating profit of $129.3 million, up $39.9 million (45%) from Q2 2006 * Capital expenditures of $37.4 million, up $1.6 million compared to Q2 2006 * Order backlog at June 30, 2007 of $438 million compared to $533 million at March 31, 2007. The backlog number includes $121 million of committed pre-funding on scheduled multi-client projects. The Company is in process of clarifying several significant Letters of Intent and significant contract awards, not included in the backlog as of end June, amounting to approximately $300 million
Onshore
* Revenues of $66.5 million, up $4.3 million (7%) from Q2 2006 * Operating profit of $6.0 million, down $0.4 million (6%) from Q2 2006 primarily due to relocation of crews * Order backlog at June 30, 2007 of $105 million compared to $135 million at March 31, 2007
Outlook 2007
Marine
* Full year streamer contract EBIT margins are expected at around 50-55% * Multi-client revenues are expected to be significantly higher than 2006 * Multi-client investments are expected to be approximately $200 million * Capital expenditure is expected to be approximately $200 million
Onshore
* Revenues and operating profit expected to be approximately in line with 2006 * Multi-client investments are expected to be approximately $65 million * Capital expenditure is expected to be in the range of $25-30 million
Second Quarter 2007: http://hugin.info/115/R/1142112/216055.pdf
Support tables IFRS: http://hugin.info/115/R/1142112/216056.pdf