Winds of recovery billowing in PGS’ sales

Based on a preliminary review, PGS is expecting to report revenues and other Income of approximately US$142 million for the third quarter of 2021, compared to US$85.1 million in Q3 2020.

The Oslo headquartered marine geophysical company has flagged segment revenues and other Income for Q3 2021 as expected to be approximately US$132 million, compared to US$116.1 million in Q3 2020.

Contract revenues ended at approximately US$66 million (US$9.3 million in Q3 2020). Segment MultiClient pre-funding revenues were approximately US$35 million (US$50.4 million in Q3 2020), and MultiClient late sales revenues approximately US$25 million (US$28.3 million in Q3 2020).

The difference between As Reported revenues and Segment revenues relates to MultiClient pre-funding where the As Reported MultiClient pre-funding revenues for Q3 are expected to be approximately US$45 million (US$19.4 million in Q3 2020).

“A majority of our Q3 vessel capacity was allocated to contract work, mainly in Northwest Europe. While the contract market continues to improve, we are experiencing a seasonally lower activity level late Q3 and early Q4,” says PGS President & CEO Rune Olav Pedersen.

“The MultiClient market remains challenging, especially for the more discretionary data library sales as energy companies maintain capital discipline. We do however expect demand for MultiClient data to improve going forward and also expect a seasonal increase of late sales in Q4. We had strong cash flow in the quarter and our liquidity reserve ended in excess of $190 million.”

PGS said six 3D vessels were active during the quarter, compared to five vessels during the corresponding period a year ago.

The company provided this information based on a preliminary summary of Q3 2021 revenues, but has not yet completed its financial reporting and related consolidation, review and control procedures, including the final review of all sales against the established revenue recognition criteria, and said estimates were subject to change.

PGS will release its Q3 2021 financial statements on Thursday, October 21.