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SOURCE: Petroleum Geo-Services ASA
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October 27, 2009 03:01 ET
Petroleum Geo-Services ASA: Third Quarter 2009 Results
HOUSTON, TX--(Marketwire - October 27, 2009) -
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 $700 million with improved cash flow expectations,
since both capital expenditures and MultiClient investments for 2009
are reduced.
Jon Erik Reinhardsen, Chief Executive Officer and President of PGS,
commented:
"We have focused heavily on cash flow over the past twelve months.
This has led to a reduction in net debt level of approximately 30%.
Vessel and streamer bookings have increased every month since April
2009 and the dollar value of the order book has stabilized. There
continues to be risks related to market outlook, not least the levels
of over-capacity in the industry, but a combination of industry
leading efficiency and technology leave us well positioned."
+-------------------------------------------------------------------------+
| | | |Year ended|
|Key Financial | Quarter ended | Nine months ended | December |
|Figures | September 30, | September 30, | 31, |
|(In millions of |-------------------+-----------------------+----------|
|dollars, except | 2009 | 2008 | 2009 | 2008 | 2008 |
|per share data) |Unaudited|Unaudited| Unaudited | Unaudited |Audited 1)|
|------------------+---------+---------+-----------+-----------+----------|
|Revenues |$ 416.4|$ 534.3|$ 1,181.7|$ 1,455.9| $ 1,917.5|
|------------------+---------+---------+-----------+-----------+----------|
|Adjusted EBITDA | 181.0| 276.1| 544.1| 726.5| 967.8|
|(as defined) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|EBIT excluding | 108.9| 187.8| 335.8| 497.8| 632.3|
|special items 2) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|EBIT | 56.5| 187.8| 184.6| 569.4| 542.7 |
|------------------+---------+---------+-----------+-----------+----------|
|Income before | | | 195.6| 522.2| |
|income tax expense| 73.1| 157.7| | | 449.4|
| | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Net income to | 47.7| 124.4| 143.0| 378.4| 417.4|
|equity holders | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Basic earnings per| | | 0.77| 2.15| |
|share ($ per | 0.24| 0.71| | | 2.37|
|share) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Diluted earnings | | | 0.77| 2.11| |
|per share ($ per | 0.24| 0.69| | | 2.36|
|share) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Net cash provided | | | 517.3| 628.8| |
|by operating | 163.8| 257.6| | | 914.6|
|activities | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Cash investment in| | | 139.1| 227.6| |
|MultiClient | 34.7| 83.0| | | 290.0|
|library | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Capital | 43.6| 112.6| 199.7| 323.4| 450.6|
|expenditures | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Total assets | 3,011.5| 3,066.9| 3,011.5| 3,066.9| 3,064.8|
|(period end) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Cash and cash | | | 184.0| 87.8| |
|equivalents | 184.0| 87.8| | | 95.2|
|(period end) | | | | | |
|------------------+---------+---------+-----------+-----------+----------|
|Net interest | | | $ 813.0| $ 1,177.6| |
|bearing debt | $ 813.0 |$ 1,177.6| | | $ 1,135.6|
|(period end) | | | | | |
+-------------------------------------------------------------------------+
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
FOR DETAILS, CONTACT:
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.
****
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.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Q3 Earnings Release: http://hugin.info/115/R/1350251/325746.pdf
Copyright © Hugin AS 2009. All rights reserved.