Robust Performance - Strong Cash Flow - Improved Visibility
October 27, 2009: HOUSTON, TEXAS. In Q3 2009 Petroleum Geo-Services ASA ("PGS" or the "Company") delivered strong cash flow and reduced net interest bearing debt by $149.1 million, to $813.0 million.
§ Strong cash flow: Q3 cash flow from operating activities of $163.8 million. This together with proceeds from sale of Geo Atlantic and equity stakes in Genesis, Borders & Southern and Endeavour contributed to strong net debt reduction in the quarter, with net interest bearing debt ending at $813.0 million. Liquidity reserve at end Q3 amounted to $430 million.
§ Q3 2009 Group performance: Earnings before interest, tax, depreciation and amortization ("EBITDA") of $181.0 million, up 12% from Q2.
§ Marine: Q3 revenues of $361.5 million and earnings before interest and tax ("EBIT") of $113.6 million, excluding the previously announced impairment charge relating to cancellation of New Build number 533 ("NB 533"). MultiClient late sales were $42.7 million, up 47% from Q2.
§ Onshore: Higher utilization gave a Q3 2009 EBIT of $4.1 million, up from $0.8 million in Q2 2009. Crew continuity is improving in line with the order book, which is up 7% at $196 million from Q2.
§ Q1 2010 is firming up: Virtually all 2009 capacity sold and approximately 80% of Q1 2010 capacity is also covered at acceptable margins. Order book end Q3 was $729 million.
§ Accelerated GeoStreamer® roll-out: By year-end 2010 50% of PGS' streamer capacity is expected to be GeoStreamer®.
§ Guidance: The Company expects full year 2009 adjusted EBITDA of approximately $700 million with improved cash flow expectations, since both capital expenditures and MultiClient investments for 2009 are reduced.
Jon Erik Reinhardsen, Chief Executive Officer and President of PGS, commented:
"We have focused heavily on cash flow over the past twelve months. This has led to a reduction in net debt level of approximately 30%. Vessel and streamer bookings have increased every month since April 2009 and the dollar value of the order book has stabilized. There continues to be risks related to market outlook, not least the levels of over-capacity in the industry, but a combination of industry leading efficiency and technology leave us well positioned."
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Key Financial Figures
(In millions of dollars, except per share data) |
Quarter ended
September 30, |
Nine months ended
September 30, |
Year ended December 31, | ||
|
2009
Unaudited |
2008
Unaudited |
2009
Unaudited |
2008
Unaudited |
2008
Audited 1) | |
|
$ 416.4 |
$ 534.3 |
$ 1,181.7 |
$ 1,455.9 |
$ 1,917.5 | |
|
Adjusted EBITDA (as defined) |
181.0 |
276.1 |
544.1 |
726.5 |
967.8 |
|
EBIT excluding special items 2) |
108.9 |
187.8 |
335.8 |
497.8 |
632.3 |
|
EBIT |
56.5 |
187.8 |
184.6 |
569.4 |
542.7 |
|
Income before income tax expense |
73.1 |
157.7 |
195.6 |
522.2 |
449.4 |
|
Net income to equity holders |
47.7 |
124.4 |
143.0 |
378.4 |
417.4 |
|
Basic earnings per share ($ per share) |
0.24 |
0.71 |
0.77 |
2.15 |
2.37 |
|
Diluted earnings per share ($ per share) |
0.24 |
0.69 |
0.77 |
2.11 |
2.36 |
|
Net cash provided by operating activities |
163.8 |
257.6 |
517.3 |
628.8 |
914.6 |
|
Cash investment in MultiClient library |
34.7 |
83.0 |
139.1 |
227.6 |
290.0 |
|
Capital expenditures |
43.6 |
112.6 |
199.7 |
323.4 |
450.6 |
|
Total assets (period end) |
3,011.5 |
3,066.9 |
3,011.5 |
3,066.9 |
3,064.8 |
|
Cash and cash equivalents (period end) |
184.0 |
87.8 |
184.0 |
87.8 |
95.2 |
|
Net interest bearing debt (period end) |
$ 813.0 |
$ 1,177.6 |
$ 813.0 |
$ 1,177.6 |
$ 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 $52.4 million in Q3 2009 and $151.2 million YTD Q3 2009, respectively. Impairment charge of $161.1 million in Q4 2008 and a gain of $71.6 million in YTD Q3 2008 from the sale of Ramform Victory.
Complete Q3 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
Mobile: +47 90 77 78 41
Bård Stenberg, Investor Relations Manager
Mobile: +47 99 24 52 35
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.
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