PGS expects to report Segment* revenues for Q3 2020 of approximately $115 million. Contract revenues ended at approximately $9 million. MultiClient pre-funding revenues were approximately $52 million, from a capitalized MultiClient cash investment of approximately $57 million. MultiClient late sales were approximately $26 million.
Q3 2020 revenues include approximately $23 million of government grants related to the Covid-19 pandemic. The government grants are recorded as Other revenues.
“A majority of our active vessel capacity was allocated to MultiClient in Q3. The market remains challenging, but we believe this quarter represents the trough of this Covid-19 driven downturn. We expect increasing revenues from vessel operations and MultiClient sales going forward.
“During the quarter, we completed our reorganization to adapt to the challenging market environment. We are now down to an annual run rate gross cash cost of approximately $400 million, assuming five vessels in operation. The process to complete documentation with lenders on the agreement to extend maturities is progressing according to plan”, said President & CEO Rune Olav Pedersen.
The Q3 2020 vessel statistics includes five vessels. All cold-stacked vessels are excluded from the statistics. The comparative periods (Q3 2019 and Q2 2020) are based on eight vessels.
The company provides this information based on a preliminary summary of Q3 2020 revenues. 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/cut-off criteria.
PGS will release its Q3 2020 financial statements on Thursday October 22, 2020, at approximately 8:00am Central European Summer Time (CEST). A corresponding presentation is scheduled for 09:00am CEST the same day.