26 Jan 2023 07:00 CET

Issuer

PGS ASA

Strong Revenue Growth in a Recovering Seismic Market

Highlights 2022

* Produced Revenues (see Note 1 and 2 in the attached Q4 earnings release) of
$817.2 million, compared to $590.0 million in 2021
* Produced EBITDA of $446.7 million, compared to $320.2 million in 2021
* Revenues and Other Income according to IFRS of $825.1 million, compared to
$703.8 million in 2021, with an EBITDA of $454.6 million, compared to $434.0
million in 2021
* EBIT (ex. impairments and other charges, net) according to IFRS of $117.0
million, compared to a loss of $32.0 million in 2021
* Net loss of $32.8 million, compared to a net loss of $179.4 million in 2021
* Cash flow from operations of $371.3 million, compared to $326.6 million in
2021
* Cash and cash equivalents of $363.8 million, compared to $170.0 million in
2021
* Net debt reduced by $319.7 million (34%), well positioned to refinance in
2023
* Order book (related to future production) increase of 74%
* Established a strong position in the carbon storage geoservices market with
successful completion of four acquisition projects
* ~80% of PGS Imaging is performed in the Cloud at a significantly lower cost
vs. on-premises compute capacity

"Our Produced Revenues increased close to 40% in 2022. We had a slow start to
the year with approximately half the fleet idle, but from early Q2 our vessel
utilization improved significantly, and the recovering seismic market is evident
from our financial numbers.

Along with the structurally growing effort to optimize producing fields among
larger energy companies, we experience a strong renewed focus on exploration,
including frontier areas. This benefits both our contract and MultiClient
acquisition activity and contributed to a strong increase of contract revenues
and easier access to pre-funding for new MultiClient projects. The full year
Produced Pre-funding level ended at 123% of MultiClient cash investments, above
our targeted range.

MultiClient late sales were the second highest on record and almost 50% higher
than in 2021. We have a geographically diverse, modern and very attractive
MultiClient library, which we expect will continue to deliver very good results.

With increasing cash flow generation and strong shareholder support we have
reduced our net debt significantly and we are well positioned to refinance
during 2023.

We increased our order book by 74% in 2022 and it is now at the highest level
since Q3 2014. The order book reflects increasing rates and higher activity and
we expect both to continue on a positive trend in 2023."

Rune Olav Pedersen,

President and Chief Executive Officer

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. With high oil and gas prices, the
seismic market is recovering. Russia's invasion of Ukraine has significantly
increased the general focus on energy security and, combined with several years
of low investment in new oil and gas supplies, has further increased oil and gas
prices and investment pressures on energy companies.

Offshore investments in oil and gas exploration and production are expected to
increase in 2023. The seismic acquisition market is likely to benefit from the
higher exploration and production spending, and a limited supply of seismic
vessels.

PGS expects full year 2023 gross cash costs to be approximately $550 million.
The increase from 2022 is primarily due to the higher activity level and more
capacity in operation.

2023 MultiClient cash investments are expected to be approximately $160 million.

Approximately 60% of 2023 active 3D vessel time is expected to be allocated to
contract work.

Capital expenditures for 2023 is expected to be approximately $100 million.

The Order book (which now only includes revenues related to future production,
ref. definition of the APM "Order book" in Appendix) amounted to $416 million on
December 31, 2022. On September 30, 2022, and December 31, 2021, the Order book
was $253 million and $239 million, respectively. The order book on a basis
consistent with IFRS 15 (which includes deferred revenues relating to production
already performed) totaled $517 million on December 31, 2022. Reference is made
to Note 1. Comparable order book numbers can be found in Appendix.

+----------------------------------------+---------------+---------------------+
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|Consolidated Key Financial Figures | Quarter ended | Year ended December |
|(In millions of US dollars, except per | December 31, | 31, |
|share data) +-------+-------+-------+-------------+
| | 2022 | 2021 | 2022 | 2021 |
+----------------------------------------+-------+-------+-------+-------------+
|  |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Segment reporting |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Produced Revenues | 250.7| 174.3| 817.2| 590.0|
+----------------------------------------+-------+-------+-------+-------------+
|Produced EBITDA | 145.2| 96.1| 446.7| 320.2|
+----------------------------------------+-------+-------+-------+-------------+
|  |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Profit and loss numbers, As Reported |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Revenues and Other Income | 216.7| 210.4| 825.1| 703.8|
+----------------------------------------+-------+-------+-------+-------------+
|EBITDA | 111.2| 132.2| 454.6| 434.0|
+----------------------------------------+-------+-------+-------+-------------+
|EBIT ex. Impairment and other charges, | | | | |
|net | 45.9| 9.7| 117.0| (32.0)|
+----------------------------------------+-------+-------+-------+-------------+
|Net financial items | (31.2)| (18.5)|(112.7)| (97.6)|
+----------------------------------------+-------+-------+-------+-------------+
|Income (loss) before income tax expense | 2.1| (45.0)| (6.7)| (163.8)|
+----------------------------------------+-------+-------+-------+-------------+
|Income tax expense | (7.0)| (8.5)| (26.1)| (15.6)|
+----------------------------------------+-------+-------+-------+-------------+
|Net income (loss) to equity holders | (4.9)| (53.5)| (32.8)| (179.4)|
+----------------------------------------+-------+-------+-------+-------------+
|Basic earnings per share ($ per share) | (0.01)| (0.13)| (0.06)| (0.45)|
+----------------------------------------+-------+-------+-------+-------------+
|  |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Other key numbers |  |  |  |  |
+----------------------------------------+-------+-------+-------+-------------+
|Net cash provided by operating | | | | |
|activities | 86.4| 42.0| 371.3| 326.6|
+----------------------------------------+-------+-------+-------+-------------+
|Cash Investment in MultiClient library | 25.0| 23.3| 106.4| 127.2|
+----------------------------------------+-------+-------+-------+-------------+
|Capital expenditures (whether paid or | | | | |
|not) | 10.7| 9.7| 50.2| 33.4|
+----------------------------------------+-------+-------+-------+-------------+
|Total assets |1,953.3|1,792.8|1,953.3| 1,792.8|
+----------------------------------------+-------+-------+-------+-------------+
|Cash and cash equivalents | 363.8| 170.0| 363.8| 170.0|
+----------------------------------------+-------+-------+-------+-------------+
|Net interest-bearing debt | 616.7| 936.4| 616.7| 936.4|
+----------------------------------------+-------+-------+-------+-------------+
|Net interest-bearing debt, including | | | | |
|lease liabilities following IFRS 16 | 703.9|1,051.3| 703.9| 1,051.3|
+----------------------------------------+-------+-------+-------+-------------+

A complete version of the Q4 2022 earnings release and capital markets day
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/20230126_1/

Webcast YouTube link:
https://www.youtube.com/watch?v=-Dqj2GhdUH8

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 (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 and the Q4 2022 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.


580753_CMD Presentation - Combined.pdf
580753_Q4 2022 Earnings Release.pdf

Source

PGS ASA

Provider

Oslo Børs Newspoint

Company Name

PGS

ISIN

NO0010199151

Symbol

PGS

Market

Oslo Børs