PGS ASA
Segment Revenues and Other Income of
Segment EBITDA of
Segment EBIT loss (excluding impairments and other charges) of
Cash flow from operations of
Returning to positive net cash flow generation in 2021, with cash flow before financing activities (interest payments and debt service) of
As Reported Revenues and Other Income according to IFRS of
Leveraging PGS' integrated business model in a market trending towards more near-field exploration and 4D seismic
Year over year order book improvement
Established New Energy and made the first significant carbon capture and storage (CCS) specific MultiClient sales
'The overall seismic market was weaker in 2021 than in 2020 and our peers generally reported lower revenues. However, the market started to recover, and we delivered higher revenues compared to 2020, when adjusting for Covid-19 related government grants received in 2020. The recovery is primarily driven by more activity and improving prices in the contract market. We achieved a 42% increase in our contract revenues.
Our clients are increasingly focusing on proven hydrocarbon areas and extracting more resources from producing fields, which positively impacts demand for proprietary contract work. Development of the MultiClient market has been more mixed. Total industry MultiClient revenues and investments were down, compared to 2020. However, it is encouraging to report the highest MultiClient revenues in the industry. Our MultiClient pre-funding level was 105% and our late sales increased by more than 30%, compared to 2020.
To position for changing customer behavior, we have revised and updated our strategy. We will continue to develop our leading position in the near-field exploration and production (4D) seismic markets. Further, to position PGS for contribution in the ongoing energy transition we established our New Energy business early 2021. We have identified CCS, offshore wind and marine minerals as markets where we can use our expertise to solve industry challenges and build a significant business. We have already made several CCS specific MultiClient sales, and we are awarded two seismic acquisition surveys for important CCS projects in 2022. With our strategic adjustments we are improving our competitive position in a recovering seismic market.
The winter season has become more challenging than expected. However, going into the summer season the activity level and our booked position is healthy and we expect the market for contract work to continue improving.
We returned to generating positive net cash flow after debt service in 2021 and we achieved a cash flow before financing activities of
The seismic market recovery in 2021 was slower than assumed in the business plan we used for the debt rescheduling implemented to address the Covid-19 disruption in 2020. We will proactively address this during the coming months and quarters of 2022.'
Outlook
PGS expects global energy consumption to continue to increase longer term with oil and gas remaining an important part of the energy mix as the global energy transition evolves. Offshore reserves will be vital for future energy supply and support demand for marine seismic services. The seismic market is slowly recovering, and the positive trend is expected to continue in 2022 due to increasing investments among energy companies. The seismic acquisition market is also likely to benefit from low vessel supply operating in the international market. In 2022 we expect to see an increasing demand for seismic acquisition services related to carbon capture and storage projects.
Contact:
Tel: +47 99 24 52 35
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 2020 and the Q1 2021 earnings release. 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.
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