PGS cautiously optimistic despite red numbers

PGS remains carefully positive even with red numbers in the fourth quarter of 2020 as revenues fell some 37 per cent.

The Oslo-listed seismic player reported quarterly loss of $60 million, or 16 cents per share on revenues of $208 million.

This result compares against profit of $10 million on around $333 million revenues in the prior-year quarter.

For the twelve months of 2020 PGS recognised loss of $321 million, compared to $72 million loss in 2019.

Revenues were also down from $931 million in 2019 to $512 million in the twelve months of 2020.

PGS secured order book of $202 million, down from $322 million same time last year.

Rune Olav Pedersen, PGS president and chief executive officer, said:

“With additional bookings at the start of this year we have good visibility through the second quarter and into the third quarter. We expect 2021 to be slightly better than last year. The current booking and bidding activity together with our MultiClient project pipeline, supports our cautiously positive view and expectation of increased acquisition activity from early Q2.

Pedersen also noted that “Despite the impacts of the Covid-19 crisis, energy consumption is expected to continue to increase longer term with oil and gas being an important part of the energy mix as the global energy transition evolves. Offshore reserves will be vital for future supply and support demand for marine seismic services.“

The recovery of the seismic industry is likely also to benefit from the recent industry capacity reductions.

Rune Olav Pedersen

Based on five vessels in operation through 2020, PGS expects full-year 2021 gross cash costs to be below $400 million.

2021 MultiClient cash investments should be approximately $150 million.

Approximately 45 per cent of 2021 active 3D vessel time is expected to be allocated to MultiClient acquisition.

Capital expenditures for 2021 is expected to be approximately $40 million.