PGS Reports Third Quarter Results (Norway)

Petroleum Geo-Services announces results for third quarter 2011.

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.

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.

[mappress]
Source: PGS, October 28 , 2011