Petroleum Geo-Services Announces 2001 Fourth Quarter and Year End Results

Financial Highlights

·Net income for the year ended December 31, 2001 is $4.5 million, compared to a ($211.5) million net loss for the year ended December 31, 2000; net loss for the 2001 fourth quarter is ($104.9) million, compared to ($200.3) million for the 2000 fourth quarter

·Fourth quarter revenue increases by 42% over the 2000 fourth quarter - at approximately $299 million, fourth quarter revenue is the highest in PGS' history

·Revenue for the year ended December 31, 2001 increases by 15% over the prior year and surpasses $1 billion for the first time in PGS' history

·Fourth quarter Geophysical Operations revenue increases by 53% over the 2000 fourth quarter and is supported by a substantial backlog level

·Fourth quarter Production Operations revenue increases by 30% over the 2000 fourth quarter and by 9% over the 2001 third quarter - all FPSOs are in operation and collectively producing strong net cash flow

·Fourth quarter operating profit (before unusual items and forced amortization) increases by 63% over the 2000 fourth quarter; comparable operating profit margin for the 2001 fourth quarter is 13%, up from 11% for the 2000 fourth quarter

·Operating profit (before unusual items and forced amortization) for the year ended December 31, 2001 increases by 2% over comparable 2000 operating profit, despite a significant increase in the ordinary multi-client amortization rate and longer periods of production downtime due to FPSO upgrades

·PGS generates sufficient free cash flow from fourth quarter operations to cover its multi-client investment and capital spending - achieving a key management objective

·PGS is negotiating a $250 million back-up loan facility, with net proceeds intended for (i) repayment of $225 million in senior notes due in March 2002 and (ii) general corporate purposes

Operating Highlights
·PGS is awarded $33 million in four-component seismic acquisition contracts offshore Nigeria, in the Norwegian sector of the North Sea and in the North Atlantic's West of Shetlands area - the contracts cover a mix of undeveloped and producing areas

·PGS secures $33 million in highly pre-funded multi-client work offshore Brazil - the work will cover nearly 4,500 square kilometers in the Campos and Espirito Santos basins and utilize PGS' patented continuous long offset (CLO) technology

·PGS is awarded $58 million in onshore and transition zone contracts in the United States, Ecuador, India and Bangladesh

·PGS enters into a data processing technology alliance with BP covering advanced seismic processing techniques for land, marine and ocean bottom seismic data in Egypt, North Africa and the Middle East

·Reserve estimates on the Foinaven field are significantly upgraded - the Foinaven contract is expected to extend for at least 10 more years

·PGS reaches definitive agreement with China National Chemicals Import and Export Corporation (Sinochem) for the sale of Atlantis - sales proceeds should approximate $185 million plus certain qualifying capital expenditures incurred during 2002, with Sinochem to assume $20.5 million of short-term debt

Restatement and Accounting Adjustments
·PGS announces in mid February 2002 restatement of results of operations for fiscal years 2000, 1999 and 1998 and announces additional restatements for matters related to fiscal year 2000 - see detailed discussion below

·PGS revises its fiscal 2001 accounts by quarter (including the fourth quarter) to properly reflect certain effects of the above-mentioned restatements as well as adjustments generated in the year-end financial statement preparation process - see detailed discussion below