PGS med stort underskudd

Highlights Q2 2016

• Revenues of $183.0 million, compared to $255.8 million in Q2 2015
• EBITDA of $68.8 million, compared to $125.1 million in Q2 2015
• EBIT excluding impairments and other charges/(income) of negative $36.2 million, compared to a profit of $15.9 million in Q2 2015
• MultiClient pre-funding revenues of $47.2 million with a corresponding pre-funding level of 113%, compared to $112.0 million and 152%, respectively, in Q2 2015
• MultiClient late sales of $46.0 million,  compared to $33.5 million in Q2 2015
• Gross cash cost further reduced, ending at $158.4 million, compared to $207.6 million in Q2 2015
• Cash flow from operations of $42.4 million, compared to $83.1 million in Q2 2015
• Liquidity reserve of $429.7 million, compared to $545.7 million in Q2 2015
• Ramform Tethys and Sanco Swift commenced operations in the North Sea
• Settled EM patent dispute between PGS and EMGS
• Leverage ratio maintenance covenant of the Revolving Credit Facility amended to increase headroom

«With the gradual recovery of the oil price from its lows in early Q1, we are starting to see early signs of a stabilizing market and improving sentiment. We believe that this has started to impact our MultiClient performance positively. The marine contract market is still characterized by very low pricing, but here too we see indications of more predictable patterns in customer survey planning and contracting processes. Due to stacking of capacity, the seismic vessel supply/demand balance has improved substantially since this time last year.
Capital expenditures were relatively high in the quarter, primarily due to the yard installment at floating and equipment for our last new build, Ramform Hyperion. Of the guided $165 million in new build capital expenditures this year we have already incurred $140 million in the first half and thus our cash flow will be more balanced for the remainder of the year.
Our liquidity position is adequate and there are no material debt maturities until late 2018. With the amended maintenance covenant for the Revolving Credit Facility we have strengthened our ability to navigate beyond the trough of this cycle and created a substantial time window to address 2018 refinancing needs in tune with how the market develops. We continue to focus on what we can control through relentless sales efforts, strict cost discipline, operational excellence and capitalizing on the youngest and most productive fleet in the industry.»
Jon Erik Reinhardsen,
President and Chief Executive Officer