PGS ASA: Fourth Quarter and Preliminary Full Year 2023 Results
February 15 2024 - 12:00AM
PGS ASA: Fourth Quarter and Preliminary Full Year 2023 Results
Reassuring Late Sales and Attractive
Contract Rates
Highlights Q4 2023
- Produced Revenues of $227.3 million, compared to $250.7 million
in Q4 2022
- Produced EBITDA of $126.7 million, compared to $145.2 million
in Q4 2022
- Produced EBIT (ex. Impairments and other charges, net) of $33.3
million, compared to $57.7 million in Q4 2022
- Revenues and Other Income according to IFRS of $265.1 million,
compared to $216.7 million in Q4 2022
- Cash flow from operations of $115.8 million, compared to $86.4
million in Q4 2022
- Cash and cash equivalents of $177.7 million, compared to $363.8
million in Q4 2022
- Gross debt of $778.1 million, compared to $1,051.3 million in
Q4 2022
- Commenced large offshore wind site characterization survey in
the US
- Shareholders approved the merger plan with TGS with close to
100% support
- After year-end, repaid the Term Loan B and refinanced the Super
Senior Loan
“It was reassuring to experience a doubling of Q4 MultiClient
late sales, compared to the average of the three first quarters of
2023, which speaks to the value of our well-positioned and
geographically diverse MultiClient data library. In Q4 most of our
late sales came from Europe and West Africa.
We worked on highly pre-funded MultiClient projects in Brazil
and Malaysia in the quarter, and in addition we recorded
significant sales from surveys in the processing phase contributing
to a strong pre-funding level of 148% of the capitalized
MultiClient cash investment.
Profitability of our contract projects in Q4 were at level with
the summer season. We are experiencing lower acquisition activity
over the winter season. At the same time the value of contract
leads continues to grow. In addition, we see increasing
opportunities for new MultiClient programs and anticipate a more
robust summer season market.
We successfully entered the offshore wind site characterization
market in 2023. In Q4 we took another step by commencing a large
contract job offshore the US which will continue to late Q2 2024.
The recent announcement of a follow-on project in Europe and a
growing opportunity basket for more offshore wind work bodes well
for our New Energy business.
For the full year 2023 we benefitted from an improving data
acquisition market with a high pre-funding level on our MultiClient
projects and increasing profitability for contract work. Despite
this, revenues declined compared to 2022 owing to unexpected
scheduling and operational challenges, and lower than expected
MultiClient late sales.
In September we announced our intention to merge with TGS to
establish the premier energy data company and in December
shareholders of both companies approved the merger with close to
100% support. The process with the Norwegian and UK competition
authorities is ongoing and we expect the legal merger process to
close in Q2 2024. The combined company will be a complete, fully
integrated service provider uniquely positioned to unlock
substantial value for shareholders, customers and employees.”
Rune Olav Pedersen,
President and Chief Executive Officer
OutlookAs the global energy
transition evolves, PGS expects energy consumption to continue to
increase over the longer term with oil and gas being an important
part of the energy mix. Offshore reserves will be vital for future
energy supply and supports demand for marine seismic services. The
seismic market is improving on the back of increased focus on
energy security, several years of low investment in new oil and gas
supplies, and attractive oil and gas prices.
Offshore energy investments are expected to
continue to increase in 2024. The seismic acquisition market
benefits from the higher spending level and a limited supply of
seismic vessels. PGS New Energy is expected to benefit from an
increasing tendering activity for offshore wind site
characterization projects.
PGS expects gross cash costs in 2024 to be
consistent with the run rate reported for Q4 2023.
Capital expenditures for 2024 is expected to be
approximately $125 million, including capex to expand the offshore
wind activities and some 2023 streamer capex delayed into 2024.
The order book amounted to $366 million on
December 31, 2023. On September 30, 2023, and December 31, 2022,
the order book was $437 million and $416 million, respectively.
Consolidated Key Financial Figures (In millions of
US dollars, except per share data) |
Quarter ended December 31, |
Year ended December 31, |
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
Segment reporting |
|
|
|
|
Produced Revenues |
227.3 |
250.7 |
770.6 |
817.2 |
Produced EBITDA |
126.7 |
145.2 |
436.9 |
446.7 |
Produced EBIT ex impairments and other charges, net |
33.3 |
57.7 |
57.1 |
108.8 |
|
|
|
|
|
Profit and loss numbers, As Reported |
|
|
|
|
Revenues and Other Income |
265.1 |
216.7 |
721.5 |
825.1 |
EBIT ex. impairment and other charges, net |
83.3 |
46.0 |
103.9 |
117.1 |
Net financial items |
(24.9) |
(31.2) |
(102.9) |
(112.7) |
Income (loss) before income tax expense |
58.2 |
2.1 |
(5.5) |
(6.7) |
Income tax expense |
2.4 |
(7.0) |
(9.0) |
(26.1) |
Net income (loss) to equity holders |
60.6 |
(4.9) |
(14.5) |
(32.8) |
Basic earnings per share ($ per share) |
0.06 |
(0.01) |
(0.02) |
(0.06) |
|
|
|
|
|
Other key numbers |
|
|
|
|
Net cash provided by operating activities |
115.8 |
86.4 |
467.2 |
371.3 |
Cash Investment in MultiClient library |
37.8 |
25.0 |
185.9 |
106.4 |
Capital expenditures (whether paid or not) |
28.2 |
10.7 |
93.5 |
50.2 |
Total assets |
1,831.9 |
1,953.3 |
1,831.9 |
1,953.3 |
Cash and cash equivalents |
177.7 |
363.8 |
177.7 |
363.8 |
Net interest-bearing debt |
542.0 |
616.7 |
542.0 |
616.7 |
Net interest-bearing debt, including lease liabilities following
IFRS 16 |
622.8 |
703.9 |
622.8 |
703.9 |
A complete version of the Q4 2023 earnings release and
presentation can be downloaded from www.newsweb.no or
www.pgs.com.
The webcast can be accessed from this
link:https://channel.royalcast.com/landingpage/hegnarmedia/20240215_22/
Webcast YouTube link:
https://youtube.com/live/zwnpPDoUWZQ?feature=share
FOR DETAILS, CONTACT: |
Bård Stenberg, VP IR &
Communication Mobile: +47 99 24 52 35**** |
PGS ASA and its subsidiaries (“PGS” or “the
Company”) is an integrated marine geophysics company, which
operates on a world-wide basis. PGS business supports the energy
industry, including oil and gas, offshore renewables and carbon
storage. The Company’s headquarter is in Oslo, Norway and the PGS
share is listed on the Oslo stock exchange (OSE: PGS). For more
information on PGS visit www.pgs.com.
****
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 2022 and the Q4 2023
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.
- Q4 2023 Earnings Release
- Q4 2023 Presentation
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