Petroleum Geo-Services ASA
oslo : PGS

October 28, 2011 02:22 ET

Petroleum Geo-Services ASA : Third Quarter 2011 Results

LYSAKER, NORWAY--(Marketwire - Oct 28, 2011) -


                         MultiClient Drives Performance
                        Healthy Cash Flow From Operations

Highlights Q3 2011

* Revenues of $339.9 million, up 15% from Q3 10

* EBITDA of $153.2 million, up 12% from Q3 2010

* Contract revenues of $164.9 million with a corresponding contract EBIT margin of 4%

* Offset by strong MultiClient revenues of $144.2 million, up 38% from Q3 2010, driven by high GeoStreamer allocation

* Net cash flow from operating activities of $149.6 million, up 127% from Q3 2010

* External Data Processing revenues of $27.5 million

* Order book of $501 million, up 2% from Q3 2010

* EPS impacted by foreign exchange movements causing non cash financial and tax charges * Full year 2011 EBITDA expectation increased to approximately $525 million

"Customer interest for the Gulf of Mexico has been strong in the quarter driven by oil companies positioning themselves to explore the region further. In particular the upcoming lease sale in Western Gulf of Mexico has triggered the strong MultiClient late sales we have delivered. Late sales were also good in other regions. Our MultiClient GeoStreamer campaigns in the North Sea continued the trend of the second quarter, generating very good pre-funding revenues.

Marine Contract EBIT margin was impacted by less GeoStreamer capacity being allocated to contract activity, increased project costs and productivity variances. These factors have lead us to revise our expectation of full year Marine Contract EBIT margin to approximately 10%. For the general market we see flat prices. Bidding for the 2012 North Sea season has started, but it is too early to see any directional change in rates. Given our performance year to date and the continued strength of our MultiClient activities, we have increased our expectation for full year 2011 EBITDA to approximately $525 million."

Jon Erik Reinhardsen,

President and Chief Executive Officer

+----------------+-----------------------+----------------------+---------+
|                |                       |                      |  Full   |
|Key Financial   |     3(rd) quarter     |      Nine months     |  year   |
|Figures         +---------+-------------+---------+------------+---------+
|(In USD         |         |             |         |            |         |
|millions, except|  2011   |    2010     |  2011   |    2010    |2010     |
|per share data) |Unaudited|Unaudited(1))|Unaudited|Unaudited(1)|Unaudited|
|                |         |             |         |            |     (1) |
+----------------+---------+-------------+---------+------------+---------+
|Revenues        |    339.9|        296.4|    908.7|       770.7|  1,135.1|
+----------------+---------+-------------+---------+------------+---------+
|EBITDA (as      |    153.2|        136.4|    389.7|       312.1|    475.4|
|defined)( )     |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|EBIT excluding  |         |             |     95.9|        88.8|    130.5|
|impairment      |     44.5|         53.1|         |            |         |
|charges (2) )   |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|EBIT as reported|     44.5|       (26.8)|     95.9|         8.4|     51.4|
+----------------+---------+-------------+---------+------------+---------+
|Income (loss)   |         |             |     52.0|      (44.0)|    (8.6)|
|before income   |     30.0|       (27.3)|         |            |         |
|tax expense     |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Net income      |         |             |     28.2|      (50.9)|   (14.0)|
|(loss) to equity|     13.5|       (40.4)|         |            |         |
|holders         |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Basic earnings  |         |             |     0.13|      (0.26)|   (0.07)|
|per share ($ per|     0.06|       (0.20)|         |            |         |
|share)          |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Diluted earnings|         |             |     0.13|      (0.26)|   (0.07)|
|per share ($ per|     0.06|       (0.20)|         |            |         |
|share)          |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Net cash        |         |             |    329.9|       250.1|    355.5|
|provided by     |    149.6|         65.9|         |            |         |
|operating       |         |             |         |            |         |
|activities      |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Cash investment |         |             |    175.4|       142.4|    166.7|
|in MultiClient  |     61.5|         38.6|         |            |         |
|library         |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Capital         |         |             |    247.3|       162.5|    223.5|
|expenditures    |     59.4|         56.9|         |            |         |
|(cash)          |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Total assets    |  2,907.6|      2,690.2|  2,907.6|     2,690.2|  3,035.0|
|(period end)    |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Cash and cash   |         |             |    176.9|       168.0|    432.6|
|equivalents     |    176.9|        168.0|         |            |         |
|(period end)    |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+
|Net interest    |         |             |    421.6|       602.9|    279.2|
|bearing debt    |    421.6|        602.9|         |            |         |
|(period end)    |         |             |         |            |         |
+----------------+---------+-------------+---------+------------+---------+

1) Financial information for the full year 2010 is derived from the audited financial statements as presented in the 2010 Annual Report which have been restated due to a change in accounting policy as discussed on page 4. The unaudited numbers for Q3 2010 and the nine month period ended September 30, 2010 have been restated accordingly.

2) Net impairment charge for the nine months period ended September 30, 2010 and the full year 2010 was $79.1 million.

Complete Q3 2011 earnings release and presentation can be downloaded from www.newsweb.no or www.pgs.com.

****

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 2010. 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 pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q3 2011 Earnings Release : http://hugin.info/115/R/1559027/481958.pdf

Q3 2011 Presentation: http://hugin.info/115/R/1559027/481959.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Petroleum Geo-Services ASA via Thomson Reuters ONE

[HUG#1559027]

Contact Information

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    Investor Relations Manager
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    Tore Langballe
    SVP Corporate Communications
    Phone: +47 67 51 43 75
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