SOURCE: Petroleum Geo-Services ASA

February 22, 2010 02:12 ET

Petroleum Geo-Services ASA: Fourth Quarter and Preliminary Full Year 2009 Results

OSLO, NORWAY--(Marketwire - February 22, 2010) -





2009 - A Challenging Year Turned Into Positive Differentiation

Petroleum Geo-Services ASA ("PGS" or the "Company") strengthened its financial position significantly during 2009 and reported strong cash flow from operations in Q4, in line with the previous quarters of the year. The Company remains very competitively positioned.

§ Strong Marine MultiClient sales: Q4 late sales were $87.2 million, on a par with the best quarterly performance ever achieved. Gulf of Mexico and Europe were the strongest contributors to the outstanding late sales performance. MultiClient pre-funding was $31.5 million, in line with Q3 2009.

§ Solid Cash flow: Cash flow from operating activities of $158.8 million in Q4 2009. Net debt was reduced further and ended at $774.0 million. Liquidity reserve amounted to $472.0 million at year-end.

§ Group performance: Q4 2009 earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"), excluding Onshore, of $141.5 million, compared to $227.5 million in Q4 2008.

§ Marine: Q4 2009 revenues of $303.2 million and earnings before interest and tax ("EBIT") of $53.8 million, excluding special items.

§ Sale of Onshore to Geokinetics: In Q4 2009 PGS entered into an agreement to sell Onshore to Geokinetics for total value of $210 million, of which approximately $184 million in cash. The transaction was closed February 12, 2010. For all periods presented, Onshore is reported as discontinued operations, net of tax.

§ 2010 North Sea season is firming up: Virtually all of first half 2010 is booked at acceptable margins and PGS will have six vessels operating in the North Sea this year.

§ Stable vessel booking: Order book end Q4 was $438 million, compared to $533 million end Q3 2009.

§ Guidance maintained: No changes to the 2010 guidance launched at the capital markets day in December 2009.

§ GeoStreamer® rollout: Ramform Valiant and Ramform Explorer scheduled for GeoStreamer® upgrade in first half 2010. By year-end 2010 approximately 50% of PGS' streamer capacity is expected to be GeoStreamer®.

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

"Throughout 2009 we achieved a significant strengthening of our financial capacity, thanks to impressive efforts from the entire organization. We are positioned to invest for profitable growth, with a particular focus on GeoStreamer® deployment. Q4 MultiClient late sales and cash flow from operations ensured a strong finish to 2009. We currently see increased interest in pre-funding commitments in the Gulf of Mexico and Europe, and an increase in bid activity."

+-----------------------------+-------------------+-----------------------+
|                             |                   |                       |
|                             |  Quarter ended    |     Years ended       |
|Key Financial Figures        |   December 31,    |     December 31,      |
|(In millions of dollars,     +---------+---------+---------+-------------+
|except per share data)       |   2009  |   2008  |  2009   |     2008    |
|                             |Unaudited|Unaudited|Unaudited|Unaudited(1))|
+-----------------------------+---------+---------+---------+-------------+
|Revenues from continuing     | $  303.7| $  393.6|$ 1,350.2|   $  1,647.4|
|operations (3))              |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Adjusted EBITDA (as defined) |    146.2|    241.4|    690.8|        967.8|
|incl. Onshore                |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Adjusted EBITDA (as defined)(|    141.5|    227.5|    672.1|        893.0|
|3))                          |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|EBIT excluding special items |     45.5|    131.2|    386.9|        691.4|
|(2) 3))                      |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|EBIT (3))                    |    43.0 |   (29.9)|    233.3|        530.2|
+-----------------------------+---------+---------+---------+-------------+
|Income before income tax     |     29.9|   (74.3)|    228.1|        438.4|
|expense (benefit) (3))       |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Net income to equity holders |     22.9|     39.0|    165.8|        417.4|
+-----------------------------+---------+---------+---------+-------------+
|Basic earnings per share ($  |     0.12|     0.22|     0.88|         2.37|
|per share)                   |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Diluted earnings per share ($|     0.12|     0.22|     0.88|         2.36|
|per share)                   |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Net cash provided by         |    158.8|    258.3|    676.1|        914.6|
|operating activities         |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Cash investment in           |     47.1|     56.9|    183.1|        229.0|
|MultiClient library (3))     |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Capital expenditures (3))    |     41.3|    117.9|    231.2|        414.5|
+-----------------------------+---------+---------+---------+-------------+
|Total assets (period end)    |  2,929.3|  3,064.8|  2,929.3|      3,064.8|
+-----------------------------+---------+---------+---------+-------------+
|Cash and cash equivalents    |    126.0|     95.2|    126.0|         95.2|
|(period end)                 |         |         |         |             |
+-----------------------------+---------+---------+---------+-------------+
|Net interest bearing debt    |$  774.0 |$ 1,135.6| $  774.0|   $  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. Annual information for 2008 and 2007 has been restated to reflect the onshore business as a discontinued operation. Accordingly, 2008 and 2007 information is derived from audited financial statements included in our 2008 annual report.

(2) Impairment charges of $2.4 million in Q4 2009 and $153.6 million for full year 2009. 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.

(3) Excluding Onshore.

Complete Q4 and preliminiary full year 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

  Bard 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 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 information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


[HUG#1386889]





Q4 Earnings Release : http://hugin.info/115/R/1386889/345389.pdf

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