Petroleum Geo Services posted a profit of US$10.4 million for the second quarter of 2018, reversing a loss of US$32.2 million from the same corresponding period a year earlier.
The Norwegian seismic services company reported that revenues were flat at US$239.7 million in 2Q 2018, compared to US$240.5 million in the same period in 2017, but had delivered an EBIT of US$30.5 million.
PGS said: “Most of our active 3D vessel capacity was allocated to MultiClient in the quarter and pre-funding revenues dominated the sales mix. MultiClient late sales did not benefit materially from any license rounds, but the quarter still demonstrates a continuance of the strong trend from the two previous quarters. Year-to-date late sales are up more than 30% compared to 2017.
“We have generated a larger pipeline of new MultiClient projects and expect to increase our MultiClient cash investment to approximately US$300 million this year, with an active 3D vessel capacity allocation to MultiClient of approximately 65% and an unchanged pre-funding requirement,” the company added.
PGS President and CEO, Rune Olav Pedersen, said: “Our cost reductions are progressing as planned and for the first time in two-and-a-half years we are reporting positive EBIT. We are on track to be cash flow positive after debt servicing this year.”
Moving forward PGS anticipates that higher oil prices, healthier cash flows among its clients and an “exceptionally low oil and gas discovery rate to benefit the marine seismic market fundamentals going forward”.
Based on the current operational projections and with reference to disclosed risk factors, PGS expects full year 2018 gross cash costs of approximately $600 million.
Capital expenditure for 2018 is expected to be approximately $50 million.
The order book totalled $187 million at June 30, 2018 (including $138 million relating to MultiClient), compared to $211 million at March 31, 2018 and $248 million at June 30, 2017. The company operated eight 3D vessels in 2Q 2018.