PGS has reported a second quarter net loss of $26 million on revenues of $186 million compared to a net loss of $111 million on revenues of $90 million in the second quarter of 2020.
PGS has reported a second quarter net loss of $26 million on revenues of $186 million compared to a net loss of $111 million on revenues of $90 million in the second quarter of 2020. The company’s operating loss was $7 million compared with a loss of $82 million in Q2 2020.
Segment revenues for Q2 2021 were $152 million, compared to $138.7 million in Q2 2020.
Contract revenues ended at approx. $51 million ($31.3 million in Q2 2020).
Segment multi-client prefunding revenues of $29 million with corresponding prefunding level of 111% compared to $66 million 102% in Q2 2020. Multi-client late revenues were $66 million ($35.5 million in Q2 2020).
Rune Olav Pederson, PGS president and chief executive officer, said: ‘We are well positioned to take advantage of a recovering market, which is trending towards more exploration in proven hydrocarbon basins and energy companies optimizing production from existing fields.
‘The increase of our multi-client revenues was driven by sales in mature areas offshore Norway and the UK, where we have industry-leading coverage with our GeoStreamer data. New multi-client acquisition activity was modest in the quarter and focused on proven basins with strong client interest, securing a pre-funding level of 111% of capitalized cash investment.
‘We experienced an increase in demand for new acquisition surveys. Most of the contract work in Q2 was for 4D projects. While we see continued price recovery, revenues were negatively impacted by challenging weather conditions during mobilization for several surveys.
‘Our order book was $255 million at quarter-end, an increase of 65%, compared to Q2 last year. We are close to fully booked for Q3, we have good visibility for Q4 and encouraging indications of a positive start to 2022. Leads for new contract work are increasing and we expect this to materialize into healthy bidding activity in the second half of the year. The first bids for 2022 North Sea work are already in the market.
‘With a recovering seismic market, the current booked position, and a healthy multi-client sales leads basket, we are increasingly confident that 2021 segment revenues will be higher than last year.’
PGS expects full year 2021 gross cash costs to be approximately $425 million, an increase from approximately $400 million guided when entering the year due to increased activity level and higher fuel prices. The estimate is based on five 3D vessels in operation through 2021 and Ramform Vanguard in operation from Q2 and through most of Q4.
Full year multi-client cash investments are expected to be approximately $150 million.
Capital expenditures for 2021 are expected to be approximately $40 million.
