PGS has reported a third quarter net loss of $61 million on revenues of $132 million compared to a net loss of $33 million on revenues of $116 million in Q3 2020.
PGS has reported a third quarter net loss of $61 million on revenues of $132 million compared to a net loss of $33 million on revenues of $116 million in Q3 2020.
The company made an operating loss of $30 million compared to an operating loss of $4 million in Q3 2020.
Segment operating loss of $40 million compared to a segment profit of $0.5 million in Q3 2020.
Segment multi-client pre-funding revenues of $35.3 million, with a corresponding pre-funding level of 101%, compared to $50.4 million and 89%, respectively, in Q3 2020
Cash flow from operations of $114.5 million, compared to $65.9 million in Q3 2020.
In the third quarter the majority of the company’s vessel capacity was utilized on proprietary contract work primarily in Northwest Europe and West Africa, which has led to a sequential rate improvement.
The Canada multi-client projects for two Ramform Titan-class vessels comprised most of the multi-client acquisition activity in the quarter. This is the 11th year in a row with solid multi-client projects offshore East Coast Canada. The overall pre-funding level for the quarter ended at 101%.
Rune Olav Pedersen, president and chief executive officer, said: ‘Multi-client late sales suffered from continued low spending among energy companies. With a strong oil price, increasing concern over energy supply and unsustainably low investment levels, we expect sales from our multi-client data library to improve going forward, including a seasonal increase in Q4.
‘We have an order book of $241 million, which is an increase of 50% compared to same quarter last year. For our vessel operations, we are experiencing a seasonally lower activity level and some standby time after the end of the North Atlantic acquisition season. However, there is a healthy volume of contract sales leads and active tenders in the market. We expect the positive acquisition market sentiment experienced over the last quarters to extend into next year and we are already seeing strong demand for new acquisition during Q2 and Q3 2022.
‘We expect that segment revenues for the full year 2021 will be higher than for 2020. With the improving cash flow in Q3, increased cash position and a continued market recovery we expect to be in position to repay our 2022 debt maturities by cash flow and refinancing our 2023 and 2024 maturities, in line with the plan at the time of agreeing the revised maturity profile.’
PGS expects full-year 2021 gross cash costs to be in the range of $400-420 million. This year’s multi-client cash investments are expected to be approximately $125 million.
Approximately 35% of 2021 active 3D vessel time is expected to be allocated to multi-client acquisition.
