PGS ASA: First Quarter 2022 Results


challenging Q1 – Encouraging market outlook

Snack Q1 2022

  • Revenue and other income of $136.2 million compared to $165.7 million in the first quarter of 2021

  • Higher contract revenue and delayed multi-client sales compared to Q1 2021

  • MultiClient pre-funding revenue decreased significantly due to a low volume of MultiClient projects completed and delivered to customers during the quarter

  • EBITDA of $51.8 million compared to $117.6 million in Q1 2021

  • EBIT loss (excluding impairments and other charges) of $20.6 million compared to a loss of $5.2 million in the first quarter of 2021

  • Cash flow from operations of $63.4 million compared to $88.6 million in the first quarter of 2021

  • Announced the award of acquisition agreements for the Northern Endurance and Northern Lights CCS projects

  • Empowered New Energy – Gained access to the market-leading P-cable system through Ocean Floor Geophysics, in which PGS is the largest shareholder

  • Received a Letter of Intent with deepC Store Limited to co-develop a commercial carbon storage project off the coast of Australia

“Contract market conditions from the second half of 2021 have been maintained and extended into Q1. However, the order volume was low during the winter season, which had a negative impact on our ship utilization. We have entered Q1 with three vessels decommissioned. One ship began a contract order in West Africa in February, while activity levels did not support the operations of the other two ships.

Our Q1 late multiclient sales revenue increased 11% year over year, continuing our positive late multiclient sales performance of 2021. The acquisition of new MultiClient data was limited to the Sarawak project in Malaysia, which we acquired jointly with TGS and Schlumberger. MultiClient pre-financing revenue was low in the first quarter as we did not complete and deliver any significant projects in the quarter.

As the summer season begins, we expect vessel utilization to improve and all of our six active vessels to be operational by early Q2. We believe that the contract market will continue to improve this year. We are seeing increasing demand for our MultiClient data from a resurgent exploration interest from our clients and we expect late 2022 MultiClient sales to increase compared to 2021.

I am excited about the progress of our New Energy business. We have received two acquisition agreements for the development of the CCS projects Endurance and Northern Lights. Additionally, we have gained access to the market-leading P-cable system, which we believe will be valuable in offshore wind energy and other applications requiring ultra-high resolution, and we have agreed with deepC Store Limited to jointly undertake a carbon storage project develop offshore australia.

We expect solid cash flow generation this year, but there is a risk that we may not generate enough cash flow to meet our 2022 debt redemption payments while maintaining an adequate cash reserve. We are working with our consultants to find the best possible solution to these problems.”

Rune Olav Pedersen,

President and Chief Executive Officer

PGS believes that global energy consumption will continue to increase over the longer term, with oil and gas remaining an important part of the energy mix as part of the global energy transition. Offshore reserves will be critical to future energy supply and to support demand for marine seismic services. With higher oil and gas prices, the seismic market is slowly recovering and the positive trend is expected to continue in 2022 as energy companies invest more. Russia’s invasion of Ukraine has significantly increased the overall focus on energy security and low investment in new oil and gas supplies, further increasing oil and gas prices and investment pressures on energy companies.

The seismic acquisition market is likely to benefit from a significant reduction in the supply of operated vessels for several years to come. In 2022, we see increasing demand for seismic acquisition services related to carbon capture and storage projects and currently anticipate revenue in the range of $20-$30 million related to our New Energy business.

For funding status and exposure see Note 11.

PGS expects full-year 2022 gross cash costs to be approximately $475 million.

In 2022, MultiClient cash investments are expected to be approximately $125 million.

Approximately 65% ​​of active 3D ship time in 2022 is expected to be spent on contract work.

Capital expenditures for 2022 are expected to be approximately $60 million.

The order book totaled $315 million as of March 31, 2022. The order book was $348 million and $426 million as of December 31, 2021 and March 31, 2021, respectively. The order book increased in April after the end of the first quarter of 2022. Please note that the company’s order book is now disclosed on a basis consistent with IFRS 15. This is a change from the order book disclosed in previous financial reports. Reference is made to Note 1 and Note 10.

Consolidated financial figures
(In millions of US dollars, except per share data)

quarter ended
march 31,

Fiscal year ended December 31st




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A full version of the Q1 2022 earnings statement and presentation can be downloaded from or

The audiocast for the first quarter of 2022 can be accessed via this link:!/hegnarmedia/20220428_13

Alternatively, use the YouTube link to access the Q1 2022 audiocast:


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


PGS ASA and its subsidiaries (“PGS” or “the Company”) an integrated marine geophysics company operating worldwide. The PGS business supports the energy industry, including oil and gas, offshore renewable and carbon storage. The company’s head office is in Oslo, Norway and PGS shares are listed on the Oslo Stock Exchange (OSE:PGS). For more information on PGS, see


The information contained herein contains certain forward-looking statements relating to activities events or developments that the company expects, plans, believes or anticipates that this 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 a large number of Risk factors including, but not limited to, demand for seismic services, demand for data from our multi-client data library, the desirability of our technology, unpredictable changes in government regulations affecting our markets and extreme weather conditions. For a further description of other relevant risks factors we refer to our annual report for the 20th21 and the Q1 2022 profit release. Because of these and other risk factors, actual events and our actual results could differ materially from those expressed or implied in such forward-looking statements. The caveat is also made that inaccuracies or errors in the information given above may occur current status of the company or its business. Any reliance on the above information is at the reader’s risk and PGS disclaims this any and all liability in this regard.


About Christine Geisler

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