PGS ASA: Q4 2022 Update

10 Jan 2023 08:00 CET

January 10, 2023, Oslo, Norway: Based on a preliminary review, PGS expects to
report Revenues and Other Income according to IFRS for Q4 2022 of approximately
$217 million, compared to $210.4 million in Q4 2021. The Company expects
Revenues and Other Income on a percentage-of-completion basis ("Produced
Revenues") for Q4 2022 of approximately $251 million, compared to $174.3 million
in Q4 2021.

PGS will in connection with the Q4 2022 financial statements disclose
alternative performance measures ("APMs") on a percentage-of-completion basis,
including Produced Revenues, to reflect MultiClient value creation. PGS will
measure its revenues on a produced basis for its internal management reporting
and consequently this will also be the basis for Segment Reporting in financial
statements. The definition and reconciliation of Produced Revenues is provided
at the end of this update*.

Contract revenues ended at approximately $111 million in Q4 2022, compared to
$64.3 million in Q4 2021. MultiClient late sales revenues were approximately $92
million in Q4 2022, compared to $80.9 million in Q4 2021.

MultiClient pre-funding revenues based on IFRS were approximately $9 million in
Q4 2022, compared to $60.0 million in Q4 2021. Estimated MultiClient pre-funding
measured on percentage-of-completion basis ("Produced Pre-funding Revenues") in
Q4 2022 was $43 million compared to $23.9 million in Q4 2021.

"Our Q4 Produced Revenues increased 44% year-over-year and are another
confirmation of an improving marine seismic market. MultiClient late sales were
strong in the quarter, driving full year 2022 late sales to approximately $327
million, which is the second-best year on record, and almost 50% higher than
2021. Following relocation of most of our vessels early in the quarter,
production has been strong. Contract rates continue to improve, and our Q4
contract revenues are the highest since Q4 2014. MultiClient Produced Pre-
funding Revenues reflect strong industry support of ongoing projects, as well as
good sales from projects where imaging is not yet completed," says President &
CEO Rune Olav Pedersen.

PGS routinely releases information about 3D vessel utilization after the end of
each quarter. The table below summarizes Q4 2022 vessel allocation:

+--------------------------------------+-----------+---------------------------+
| | | |
| | | |
|Approximate allocation of PGS operated| Quarter | |
|3D towed streamer capacity | ended | |
| | | |
| | December | |
| | 31, |Quarter ended September 30,|
+--------------------------------------+----+------+---------------------------+
|  |2022| 2021 | 2022 |
+--------------------------------------+----+------+---------------------------+
|Contract seismic | 63%| 44%| 60%|
+--------------------------------------+----+------+---------------------------+
|MultiClient seismic | 12%| 14%| 28%|
+--------------------------------------+----+------+---------------------------+
|Steaming | 16%| 3%| 9%|
+--------------------------------------+----+------+---------------------------+
|Yard | 3%| 7%| 3%|
+--------------------------------------+----+------+---------------------------+
|Stacked/Standby | 6%| 32%| 0%|
+--------------------------------------+----+------+---------------------------+


The Q4 2022 vessel statistics includes six active 3D vessels. All cold-stacked**
vessels are excluded from the statistics. The comparative periods are also based
on six active 3D vessels.

The Company provides this information based on a preliminary summary of Q4 2022
numbers. The Company has not completed its financial reporting and related
consolidation, review and control procedures, including the final review of all
sales against the established revenue recognition criteria. The estimates
provided in this release are therefore subject to change and the Q4 2022
financial statements finally approved and released by the Company may deviate
from the information herein.

PGS will publish its Q4 2022 earnings release and capital markets day
presentation on Thursday January 26, 2023 at approximately 07:00am Central
European Time (CET). Presentation of the Q4 2022 results and capital markets day
material is scheduled to start at 09:00am CET the same day.

*From January 1, 2022, PGS changed its Segment Reporting measurement to simplify
external and internal reporting.

PGS will in connection with the Q4 2022 financial statements disclose
alternative performance measures ("APMs") on a percentage-of-completion basis.
PGS will report Produced Revenues, Produced EBITDA and order book relating to
future production. PGS will measure its revenues on a produced basis for its
internal management reporting and consequently this will also be the basis for
Segment Reporting in financial statements. PGS believes that the introduction of
these APMs will improve transparency and provide better information financial
statement users.

The APMs reflect the difference between recognizing MultiClient pre-funding
revenues under IFRS compared to alternatively measuring such revenues on a
percentage-of-completion basis as the project is progressing, which is a non
GAAP measure. IFRS 15 reporting generally recognizes revenue from MultiClient
pre-funding agreements at the "point in time" when the customer receives access
to, or delivery of, the finished data.

Adjustments between IFRS revenues and Produced Revenues for each quarter in
2022 and 2021 are shown in the table below:

+---------------------------------+---------------+----------------------------+
|  | |                            |
| | 2021 |2022 |
+---------------------------------+---+---+---+---+--+--+---+------------------+
|$ Million |Q1 |Q2 |Q3 |Q4 |Q1|Q2|Q3 | Q4 |
+---------------------------------+---+---+---+---+--+--+---+------------------+
|MultiClient pre-funding revenues,| | | | | | | | |
|IFRS  | 80| 63| 45| 60|15|96| 19| 9|
+---------------------------------+---+---+---+---+--+--+---+------------------+
|Less Revenue for projects with | | | | | | | | |
|IFRS performance obligations met | | | | | | | | |
|during the quarter for completed | | | | | | | | |
|projects  | 80| 63| 45| 60|15|96| 19| 9|
+---------------------------------+---+---+---+---+--+--+---+------------------+
|Add Revenue recognized on a POC | | | | | | | | |
|basis during the quarter | 46| 29| 35| 24|19|33| 37| 43|
+---------------------------------+---+---+---+---+--+--+---+------------------+
|Produced MultiClient Pre-funding | | | | | | | | |
|Revenues | 46| 29| 35| 24|19|33| 37| 43|
+---------------------------------+---+---+---+---+--+--+---+------------------+


**The term "cold-stacked" is used when a vessel is taken out of operation for an
extended period of time. Costs are reduced to a minimum, with the vessel
preserved for a long idle time, all or most in-sea seismic equipment removed
from the vessel, and typically the Company does not have available crew to
operate the vessel.


FOR DETAILS, CONTACT:

Bård Stenberg, VP IR & Corporate Communication
Mobile: +47 99 24 52 35


***
PGS ASA and its subsidiaries ("PGS" or "the Company") is an integrated marine
geophysics company, which operates world-wide. The Company supports the energy
industry, including oil and gas, offshore renewables, carbon capture and
storage. PGS' headquarter is in Oslo, Norway and the PGS share is listed on the
Oslo stock exchange (OSE: PGS). For more information about PGS visit www.pgs.com
(http://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 2021. 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.

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act


--END--

More information:
Access the news on Oslo Bors NewsWeb site