Strong Operational Performance
May 12, 2009: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") today announced strong Q1 earnings. Despite lower market activity in a number of areas, adjusted EBITDA was $201.9 million, down only 13% from the same period last year. This reflects strong operational performance, which drove Marine contract revenues to a new record of $319.3 million.
§ Q1 2009 Group performance: Earnings before interest and tax ("EBIT"), excluding impairments, was reduced by 13% compared to Q1 2008, when adjusted for the extraordinary gain from sale of Ramform Victory ($71.6 million). EBIT margin, excluding impairments, for the Group was 34%. Revenues for the quarter decreased by 7% compared to Q1 2008. As indicated earlier the Company recorded impairments of long-lived assets in Q1 2009, amounting to $50.6 million. The impairment primarily relates to the cancellation of Arrow new-build ("NB") 532, which the Company expects will have a significant positive cash effect in 2009.
§ Marine: Overall EBIT for the Marine segment was weaker than the same period last year driven by lower MultiClient sales and higher depreciation, partly offset by record strong Marine contract revenues.
§ Onshore: Lower activity in North America and North Africa and lower MultiClient sales contributed to a weaker quarter for Onshore.
§ First 3D GeoStreamer® survey completed: Atlantic Explorer started the first MultiClient 3D job in DeSoto Canyon in the Gulf of Mexico late Q4 2008 and completed the survey in mid-March. Operations have been successful and the quality of the fast track data is excellent.
Jon Erik Reinhardsen, Chief Executive Officer and President of PGS, commented:
"The strong quarterly results are primarily driven by excellent operational performance. The competitive advantages of our modern, state-of-the-art and cost efficient fleet put us in a good position to generate healthy cash flows even as the market turns weaker towards the second half of the year."
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Key Financial Figures
(In millions of dollars, except per share data) |
Quarter ended
March 31, |
Year ended December 31, | |
|
2009
Unaudited |
2008
Unaudited |
2008
Audited 1) | |
|
$ 424.9 |
$ 456.6 |
$1,917.5 | |
|
Adjusted EBITDA (as defined) |
201.9 |
230.8 |
967.8 |
|
EBIT excluding impairment charges and sales gain 2) |
144.9 |
166.1 |
632.3 |
|
EBIT |
94.3 |
237.7 |
542.7 |
|
Income before income tax expense |
79.2 |
228.9 |
449.4 |
|
Net income to equity holders |
54.2 |
156.0 |
417.4 |
|
Basic earnings per share ($ per share) |
0.31 |
0.89 |
2.37 |
|
Diluted earnings per share ($ per share) |
0.31 |
0.84 |
2.36 |
|
Net cash provided by operating activities |
145.4 |
241.0 |
914.6 |
|
Cash investment in MultiClient library |
47.1 |
81.0 |
290.0 |
|
Capital expenditures |
95.4 |
119.3 |
450.6 |
|
Total assets (period end) |
3,089.3 |
2,933.5 |
3,064.8 |
|
Cash and cash equivalents (period end) |
101.7 |
154.0 |
95.2 |
|
Net interest bearing debt (period end) |
$ 1,141.5 |
$ 1,186.7 |
$ 1,135.6 |
1) Financial information for the full year 2008 is derived from the audited financial statements as presented in the 2008 Annual Report.
2) Impairment charges of $50.6 million in Q1 2009. In Q1 2008 PGS recorded a gain of $71.6 million from the sale of Ramform Victory.
Complete Q1 earnings release can be downloaded at www.newsweb.no or www.pgs.com
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FOR DETAILS, CONTACT: |
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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.
