Second Quarter and First Half 2010 Results
LYSAKER (OSLO), NORWAY -- (Marketwire) -- 07/29/10 --
EBITDA Guidance Maintained
Fleet Upgrades Strengthen Competitive Platform
July 29, 2010: OSLO, NORWAY - Petroleum Geo-Services ASA ('PGS' or the
'Company') reported an EBITDA of $71.4 million (33 percent margin) in Q2
2010.
The results were impacted by significant investments in vessel upgrades and
repositioning of vessels, as earlier indicated. The upgrades further
strengthen
PGS' fleet as the most cost effective in the industry.
§ Group performance: Q2 2010 revenues were $214.9 million, with a
corresponding
EBIT of $5.3 million, compared to revenues of $294.3 million in Q2 2009
and an
EBIT of $32.9 million.
§ Marine: Q2 2010 revenues were lower compared to the same period
last year,
primarily driven by more time spent steaming and at yard, lower
prices for
Marine contract work with 2009 having benefited from activity priced
before the
credit crunch, and lower MultiClient pre-funding revenues. Industry
capacity
additions scheduled for 2010 continue to put pressure on conventional
streamer
pricing.
§ Most of the 2010 GeoStreamer® capacity sold: Strong
customer interest for
GeoStreamer® continues. Ramform Valiant was equipped with
GeoStreamer® in June
and Ramform Explorer completed the same upgrade in July.
§ GeoStreamer® price uplifts: Relative pricing differentiation
for GeoStreamer®
work continues to improve with margins of more than 1000 basis points
above
conventional streamer margins.
§ Order book increasing: Order book increased by approximately $90
million from
Q1 2010 and total order book is now $499 million.
§ Two break-through contracts for OptoSeis: PGS has signed an
agreement with
Petrobras to install a fiber-optic system at the Jubarte field,
and a
collaboration agreement with Shell to develop an onshore fiber-optic
exploration
and reservoir monitoring system.
§ More flexible credit facility: The Company amended its revolving
credit and
Term Loan B facility in May 2010 to increase financial flexibility.
§ Negative net financial items: Foreign exchange fluctuations and
amendment and
redemption of credit facilities resulted in a cost of $18.2 million in Q2
2010.
§ Organizational changes implemented: Following sale of the
Onshore business
PGS implemented its new organizational structure.
§ EBITDA guidance maintained: The Company maintains its full
year EBITDA
guidance of $450 million, supported by GeoStreamer® success and
increased
MultiClient pre-funding revenues in the second half, offset by a weak
contract
market for conventional streamers and some MultiClient late sales
uncertainty.
Jon Erik Reinhardsen, Chief Executive Officer and President of PGS,
commented:
'The upgrade of Ramform Explorer to become one of the most efficient
vessels in
the industry will together with the GeoStreamer® upgrade of Ramform
Valiant and
delivery of the new PGS Apollo pave the way for increased efficiency and
reduced
exposure to the industry cycles. The second quarter was impacted by
repositioning of vessels and significant investments in vessel and
GeoStreamer®
upgrades. New industry capacity will continue to put pressure on pricing in
the
second half, but we remain on track to meet our current full year EBITDA
guidance.'
+-----------------+-------------------+--------------------+--------------+
| | | | |
|Key Financial | Quarter ended | Six months ended | Year ended |
|Figures | June 30, | June 30, | December |
|(In millions of +---------+---------+---------+----------+ 31, 2009 |
|dollars, except | | | | | Audited(1) |
|per share data) | 2010 | 2009 | 2010 | 2009 | |
| |Unaudited|Unaudited|Unaudited|Unaudited | |
+-----------------+---------+---------+---------+----------+--------------+
|Revenues from | | | $ 474.3| $ 685.1| $ 1,350.2|
|continuing |$ 214.9 | $ 294.3| | | |
|operations | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Adjusted EBITDA | 71.4| 154.1| 170.7| 360.5| 672.1|
|(as defined)( ) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|EBIT excluding | | | 40.1| 236.3| 386.9|
|special items (2)| 5.3| 81.2| | | |
|) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|EBIT | 5.3| 32.9| 39.6| 137.5| 233.3|
+-----------------+---------+---------+---------+----------+--------------+
|Income (loss) | | | (12.4)| 129.8| 228.1|
|before income tax| (27.4)| 40.2| | | |
|expense | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Net income (loss)| (22.3)| 41.0| (6.1)| 95.2| 165.8|
|to equity holders| | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Basic earnings | | | (0.03)| 0.53| 0.88|
|per share ($ per | (0.11)| 0.22| | | |
|share) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Diluted earnings | | | (0.03)| 0.53| 0.88|
|per share ($ per | (0.11)| 0.22| | | |
|share) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Net cash provided| | | 179.3| 353.5| 676.1|
|by operating | 63.8| 208.1| | | |
|activities | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Cash investment | | | 103.8| 101.6| 183.1|
|in MultiClient | 51.7| 56.7| | | |
|library | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Capital | 52.7| 56.8| 100.6| 150.5| 231.2|
|expenditures | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Total assets | 2,690.4| 3,132.4| 2,690.4| 3,132.4| 2,929.4|
|(period end) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Cash and cash | | | 159.8| 168.1| 126.0|
|equivalents | 159.8| 168.1| | | |
|(period end) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
|Net interest | | | $ 616.3| $ 962.1| $ 774.0|
|bearing debt | $ 616.3| $ 962.1| | | |
|(period end) | | | | | |
+-----------------+---------+---------+---------+----------+--------------+
(1) Financial information for the full year 2009 is derived from the
audited
financial statements as presented in the 2009 Annual Report.
(2) Impairment charges of $0.5 million in Q1 2010 and $153.6 million for
the
full year 2009.
Complete Q2 2010 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
This information is subject of the disclosure requirements acc. to §5-
12 vphl
(Norwegian Securities Trading Act)
[HUG#1434693]
Q2 2010 Earnings Release: http://hugin.info/115/R/1434693/380251.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(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
