Highlights Q2 2023

• Produced Revenues of $186.4 million, compared to $209.7 million in Q2 2022
• Produced EBITDA of $113.1 million, compared to $129.4 million in Q2 2022
• Produced EBIT (ex. Impairments and other charges, net) of $23.2 million, compared to $50.1 million in Q2 2022
• Revenues and Other Income according to IFRS of $156.0 million, compared to $273.6 million in Q2 2022
• Cash flow from operations of $99.4 million, compared to $43.7 million in Q2 2022
• Commenced acquisition of PGS first offshore wind site characterization survey
• Secured another multi-season MultiClient project in the Norwegian Sea, evidencing renewed exploration interest in the region

Rune Olav Pedersen, President and Chief Executive Officer, commented:
“We achieved a MultiClient pre-funding level of 127% of capitalized cash cost in the quarter, and we continue to deliver improving rates and margins on our contract work. The strong acquisition revenues are achieved despite weather related challenges for our vessels working on the Norwegian continental shelf in the early part of the Europe season, and a delayed yard stay for the Ramform Sovereign. Further, I am pleased to see a meaningful increase in MultiClient late sales, which more than doubled from the first quarter this year.

Our New Energy business continues to progress and in Q2 we commenced acquisition of our first offshore wind site characterization survey in the Irish Sea. Our offshore wind site characterization offering has attracted considerable client interest, and we recently announced another large contract in the US by a leading renewable energy company with mobilization scheduled for August and completion scheduled for February next year.

Our order book remains at a high level, and we are now in the process of booking capacity for the early part of the winter season. We expect the contract bidding activity to increase driven by the highest volume of sales leads since December 2014.

We refinanced earlier this year deliberately leaving $138 million of our Term Loan B to be repaid in March 2024. According to our estimates we can manage this repayment with our liquidity reserve and the cash flow we expect to generate over the next quarters. However, to further increase the liquidity headroom and financial robustness we announced today that we have secured commitments of $75 million from supportive creditors for a separate facility to refinance parts of the March 2024 Term Loan B maturity.”

Outlook

As the global energy transition evolves, PGS expects global energy consumption to continue to increase over the longer term with oil and gas remaining an important part of the energy mix. Offshore reserves will be vital for future energy supply and support demand for marine seismic services. The seismic market is recovering on the back of increased focus on energy security, several years of low investment in new oil and gas supplies, and higher oil and gas prices.

Offshore investments in oil and gas exploration and production are expected to increase in 2023. The seismic acquisition market is likely to benefit from the higher exploration and production spending, and a limited supply of seismic vessels.

PGS expects full year 2023 gross cash costs to be approximately $550 million. The increase from 2022 is primarily due to the higher activity level and more capacity in operation.

2023 MultiClient cash investments are expected to be approximately $180 million.

Approximately 50% of 2023 active 3D vessel time is expected to be allocated to contract work.

Capital expenditures for 2023 is expected to be approximately $100 million.

The order book amounted to $341 million on June 30, 2023. On March 31, 2023, and June 30, 2022, the Order book was $377 million and $311 million, respectively.

KeyFacts Energy Industry Directory: PGS