Petroleum Geo-Services ASA : First Quarter 2016 Results
(Thomson Reuters ONE) -
Strong Cost Management in Face of Continued Market Uncertainty
Highlights Q1 2016
* Revenues of $203.1 million, compared to $251.1 million in Q1 2015
* EBITDA of $78.6 million, compared to $127.5 million in Q1 2015
* EBIT excluding impairments and other charges/(income) of negative $30.2
million, compared to a profit of $13.6 million in Q1 2015
* Cash flow from operations of $133.3 million, compared to $212.4 million in
Q1 2015
* MultiClient pre-funding revenues of $59.9 million with a corresponding pre-
funding level of 124%, compared to $86.6 million and 135% respectively in Q1
2015
* MultiClient late sales of $65.3 million, compared to $56.7 million in Q1
2015
* MultiClient revenues benefited from sales to Azimuth Ltd.
* Liquidity reserve of $496.6 million, compared to $558.9 million in Q1 2015
* 90% active vessel time in Q1 2016, compared to 63% in Q1 2015
* Cost and capital expenditures further reduced
* Ramform Tethys delivered, the third in a series of four ultra-productive
Ramform Titan-class vessels
"The marine seismic market continues to be challenging, with the further
weakening of the oil price around the start of the year having a negative impact
on MultiClient sales and contract awards in Q1. Excellent operational vessel
performance has offset some of the impact of weak market fundamentals. We cold-
stacked four 3D vessels last year and with a smaller and more productive fleet
we are now delivering significantly improved utilization.
Q1 MultiClient revenues ended at a solid $125.2 million, including $56 million
of sales to Azimuth. The MultiClient pre-funding level ended at a strong 124%
underlining the attractiveness of our MultiClient projects. In Q1 PGS increased
its investment in Azimuth, intended to maintain our minority share of 45% with
no further capital contributions for the next two years. We support the counter
cyclical investment strategy of Azimuth and our investment level has over time
corresponded to the cash contributions from data sales and services we provide
to Azimuth.
In the current weak market we continue to focus on what we can control through
relentless sales efforts, strict cost discipline, operational excellence and
capitalizing on the youngest and most productive fleet in the industry. We are
on track to deliver further cost savings in 2016 of $80 million. Delivery of the
Ramform Tethys in March and commencement of operations of the chartered vessel
Sanco Swift in Q2 will strengthen our position further."
Jon Erik Reinhardsen,
President and Chief Executive Officer
Outlook
The low oil price and reduction in oil companies' spending continue to impact
seismic demand. PGS expects market uncertainty and low earnings visibility to
continue through 2016.
Based on the current operational projections and with reference to disclosed
risk factors, PGS expects full year 2016 gross cash cost of approximately $715
million. This amount represents the sum of reported net operating expenses
(excluding depreciation, amortization, impairments and other charges/(income))
and the cash operating costs capitalized as investments in the MultiClient
library as well as capitalized development costs.
MultiClient cash investments are expected to be approximately $230 million, with
a pre-funding level of approximately 100%.
Slightly less than 50% of active 3D vessel time is currently planned for
MultiClient acquisition.
Capital expenditures are expected to be approximately $225 million, of which
approximately $165 million is for the new builds Ramform Tethys and Ramform
Hyperion.
The Company has initated a process to increase headroom under the maintenance
covenant for its revolving credit facility (Ref. description in Note 10).
The order book totaled $204 million at March 31, 2016 (including $104 million
relating to MultiClient), compared to $240 million at December 31, 2015 and $394
million at March 31, 2015.
+--------------------------------+---------------------+-----------------------+
| | | |
| | |Year ended December 31,|
|Key Financial Figures | Quarter ended March | |
|(In USD millions, except per | 31, | |
|share data) +---------+-----------+-----------------------+
| | | | |
| | 2016 | 2015 | 2015 |
+--------------------------------+---------+-----------+-----------------------+
|Revenues | 203.1| 251.1| 961.9|
+--------------------------------+---------+-----------+-----------------------+
|EBITDA (as defined, see Note 13)| 78.6| 127.5| 484.4|
+--------------------------------+---------+-----------+-----------------------+
|EBIT ex. impairment and other | (30.2)| 13.6| 15.8|
|charges/(income) | | | |
+--------------------------------+---------+-----------+-----------------------+
|EBIT as reported | (31.6)| 10.9| (430.4)|
+--------------------------------+---------+-----------+-----------------------+
|Income (loss) before income tax | (62.2)| (10.0)| (505.5)|
|expense | | | |
+--------------------------------+---------+-----------+-----------------------+
|Net income (loss) to equity | (57.1)| (19.5)| (527.9)|
|holders | | | |
+--------------------------------+---------+-----------+-----------------------+
|Basic earnings per share ($ per | (0.24)| (0.09)| (2.43)|
|share) | | | |
+--------------------------------+---------+-----------+-----------------------+
|Net cash provided by operating | 133.3| 212.4| 487.9|
|activities | | | |
+--------------------------------+---------+-----------+-----------------------+
|Cash investment in MultiClient | 48.3| 64.0| 303.3|
|library | | | |
+--------------------------------+---------+-----------+-----------------------+
|Capital expenditures (whether | 108.9| 41.5| 165.7|
|paid or not) | | | |
+--------------------------------+---------+-----------+-----------------------+
|Total assets | 3 029.2| 3 501.0| 2 914.1|
+--------------------------------+---------+-----------+-----------------------+
|Cash and cash equivalents | 116.6| 148.9| 81.6|
+--------------------------------+---------+-----------+-----------------------+
|Net interest bearing debt | 1 120.9| 955.9| 994.2|
+--------------------------------+---------+-----------+-----------------------+
The complete Q1 2016 results earnings release and presentation can be
downloaded from www.newsweb.no and www.pgs.com.
FOR DETAILS CONTACT:
Bård Stenberg, VP IR & Corporate Communications
Phone: +47 67 51 43 16
Mobile: +47 992 45 235
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q1 2016 Earnings Release:
http://hugin.info/115/R/2009164/743467.pdf
Q1 2016 Earnings Presentation:
http://hugin.info/115/R/2009164/743468.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Petroleum Geo-Services ASA via GlobeNewswire
[HUG#2009164]
Unternehmensinformation / Kurzprofil:
Datum: 03.05.2016 - 07:02 Uhr
Sprache: Deutsch
News-ID 468069
Anzahl Zeichen: 9344
contact information:
Town:
Lysaker (Oslo)
Kategorie:
Business News
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