PGS Announces 4Q 2011 Results

Petroleum Geo-Services ASA (PGS) released following fourth quarter and preliminary full year 2011 results.

 Highlights 2011

* Strong EBITDA of $534.8 million

* Total MultiClient revenues of $501.8 million, up 28% from 2010, with record late sales of $278.3 million

* Continued growth for Data Processing with external revenues of $110.0 million

* Overall 2011 EBIT of $138.7 million, a margin of 11%

* Cash flow from operations of $480.4 million, up 35% from 2010, driven by higher earnings and improved working capital

* 2011 net income overall of $33.7 million with Q4 being impacted by non-cash financial and tax charges

* Order book growth of 16% from Q4 2010 to $678 million

* Pricing inflection to drive contract improvement in 2012

* Successfully issued $300 million Senior Notes at favorable terms, securing a longer debt maturity profile

* Launched GeoStreamer GSTM – the only ghost free acquisition solution in the industry

“Strong Q4 MultiClient late sales revenues offset the weak utilization and productivity for marine contract work in the quarter. Late sales revenues in 2011 were by far the best in PGS’ history. Europe, Middle East, and North and South America all delivered strong MultiClient revenues. West Africa will be an important region for us in 2012 as we have commenced a large MultiClient project covering five pre-salt blocks offshore Angola, further expanding our geographical footprint. Our focused MultiClient organization continues to deliver growth and improved results and will over time drive enhanced performance for the Company through the cycle.

 Incremental demand offshore Angola, the Gulf of Mexico and increased interest for Baffin Bay, Greenland and the Barents Sea have improved the supply/demand balance in the seismic market. We expect the North Sea marine contract market to be tighter this year with higher prices being achieved. Q1 will still be a challenging quarter impacted by steaming, idle time for lower end capacity and pressure on prices, as communicated earlier. Market activity has increased significantly over the last couple of months with bid activity close to early 2007 levels.” says Jon Erik Reinhardsen,President and Chief Executive Officer.

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Offshore Wind Staff , February  21, 2012; Image:  PGS