PGS ended the full year 2023 benefitting from an improving data acquisition market with high pre-funding level on MultiClient projects and increasing profitability for contract work.
Nevertheless, revenues declined compared to 2022 due to unexpected scheduling and operational challenges, and lower than expected MultiClient late sales.
This was revealed in PGS’s recent 2023 Annual Report in which outgoing President and CEO Rune Olav Pedersen said of the roller coaster ride through the year: “We entered 2023 with a strong order book in a recovering seismic market. Our integrated service offering enabled us to leverage the market recovery. Profitability for our contract work improved through the year and is approaching sustainable levels. Commitments to new MultiClient programs were strong and our prefunding revenues ended close to 140% of capitalized MultiClient cash investment, significantly above our target range of 80-120%.
“Our New Energy business successfully entered the offshore wind market, where we completed our first offshore wind site characterization contract, won a large project extending well into 2024, and experienced strong client interest for our efficient ultra high-resolution 3D streamer solution.
“After a long preparation process, we refinanced most of our 2024 debt maturities by issuing a $450 million senior secured bond in early 2023. Due to the operational headwinds, we added $75 million to our liquidity reserve around mid-year by issuing a loan and allayed external liquidity concerns.
“On our digitalization journey, we continue to excel. Most PGS imaging work is now done in the cloud, providing scalability, flexibility and always access to state-of-the-art hardware. We began harnessing satellite technology to push the boundaries of offshore data transmission.”
2023 was an eventful year for PGS as its last as a standalone company is as it merged with TGS, creating a fully integrated service provider.
“Research agencies expect continued investment growth for our industry in 2024 and in subsequent years,” said Olav Pedersen. “Combining TGS and PGS makes the new company well positioned for the improving market sentiment in the coming years. Although I will not have the pleasure of being a part of this, I am sure management of the combined company will capitalize on the business opportunities ahead, continue to strengthen our financial position and deliver significant value to our shareholders.”
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16/05/2022
