SOURCE: Petroleum Geo-Services ASA

February 19, 2009 02:03 ET

Fourth Quarter and Preliminary Full Year 2008 Results

OSLO, NORWAY--(Marketwire - February 19, 2009) -


                             Record Year
                      Competitively Positioned

Petroleum Geo-Services ASA ("PGS" or the "Company") today announced record preliminary full year results. 2008 revenues, earnings before interest and tax, depreciation and amortization ("EBITDA") and earnings before interest and tax ("EBIT"), excluding impairments, increased 26%, 21% and 42% respectively from previous records set in 2007. The order book remains above $1 billion.

§ Strong Q4 2008 growth: Revenues of $461.6 million, up $89.1 million (24%) from Q4 2007. EBIT, excluding impairments, of $134.5 million, up $58.0 million (76%) compared to Q4 2007. Cash flow from operating activities of $258.3 million, up $73.8 million (40%) from $184.5 million in Q4 2007. Net interest bearing debt reduced by $42.0 million in Q4 2008. As indicated earlier the Company recorded impairments of long-lived assets in Q4 2008, amounting to $161.1 million.

§ Marine: EBIT, excluding impairments, of $149.0 million in Q4 2008, up $47.8 million (47%) from Q4 2007, primarily driven by increased contract revenues and a net increase in capacity as a result of Ramform Sovereign entering the fleet in March 2008.

§ Onshore: EBIT was $3.1 million in Q4 2008, up $6.2 million from Q4 2007, driven primarily by higher activity in Latin America and domestic USA, restructuring of the North African operations and lower MultiClient amortization.

§ Order book above $1 billion: Order book end Q4 2008 was $871 million for Marine (including DP) and $194 million for Onshore.

§ First 3D GeoStreamer® survey commenced: Atlantic Explorer started on a large MultiClient 3D job in DeSoto Canyon in the Gulf of Mexico late Q4 2008 covering approximately 300 Offshore Continental Shelf ("OCS") deepwater blocks with very successful operations to date.

Jon Erik Reinhardsen, President and Chief Executive Officer of PGS, commented:

"In 2008 we delivered the strongest full year result in the history of PGS. The order book of more than $1 billion provides a solid platform going forward. We are industry leading in cost, productivity and return from library, and well positioned to generate healthy cash flows even in a weak market. We have robust financing in place at very attractive terms."

+-------------------------------------------------------------------+
| Key Financial     |     Quarter ended     |      Years ended      |
| Figures           |     December 31,      |      December 31,     |
| (In millions of   |-----------------------+-----------------------|
| dollars, except   |   2008    |   2007    |   2008    |   2007    |
| per share data)   | Unaudited | Unaudited | Unaudited |  Audited  |
|-------------------+-----------+-----------+-----------+-----------|
| Revenues          |  $  461.6 |  $  372.5 |  $1,917.5 |  $1,519.9 |
|-------------------+-----------+-----------+-----------+-----------|
| Adjusted EBITDA   |     241.4 |     165.8 |     967.8 |     800.8 |
| (as defined)      |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| EBIT              |    (26.7) |      76.5 |     542.7 |     494.5 |
|-------------------+-----------+-----------+-----------+-----------|
| EBIT excluding    |           |           |           |           |
| impairment        |     134.5 |      76.5 |     703.9 |     494.5 |
| charges1)         |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Income (loss)     |           |           |           |           |
| before income tax |    (72.8) |      65.2 |     449.4 |     458.7 |
| expense (benefit) |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Net income to     |      45.0 |      45.8 |     423.4 |     470.0 |
| equity holders    |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Basic earnings    |           |           |           |           |
| per share ($ per  |      0.26 |      0.26 |      2.41 |      2.65 |
| share)            |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Diluted earnings  |           |           |           |           |
| per share ($ per  |      0.26 |      0.26 |      2.39 |      2.65 |
| share)            |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Net cash provided |           |           |           |           |
| by operating      |     258.3 |     184.5 |     914.6 |     722.8 |
| activities2)      |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Cash investment   |           |           |           |           |
| in MultiClient    |      62.4 |      83.2 |     290.0 |     282.8 |
| library2)         |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Capital           |     127.2 |     110.3 |     450.6 |     260.4 |
| expenditures2)    |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Total assets      |   3,064.8 |   2,875.0 |   3,064.8 |   2,875.0 |
| (period end)      |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Cash and cash     |           |           |           |           |
| equivalents       |      95.2 |     145.3 |      95.2 |     145.3 |
| (period end)      |           |           |           |           |
|-------------------+-----------+-----------+-----------+-----------|
| Net interest      |           |           |           |           |
| bearing debt      | $ 1,135.6 | $ 1,172.7 | $ 1,135.6 | $ 1,172.7 |
| (period end)      |           |           |           |           |
+-------------------------------------------------------------------+


1) Excluding impairment charges of $161.1 million for Q4 2008 and full year 2008 numbers. Total year 2008 includes a gain of $71.6 million from the sale of Ramform Victory in Q1.

2) PGS has restated its cash flow statements, for the periods presented, to show gross interest paid as a separate line item under finance activities.

Complete Q4 earnings release can be downloaded at www.newsweb.no or www.pgs.com



FOR DETAILS, CONTACT:

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.

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 2007. 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.

Q4 2008 Earnings Release: http://hugin.info/115/R/1291759/291973.pdf

Q4 2008 Key Numbers: http://hugin.info/115/R/1291759/291974.pdf


This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



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