Multiclient performance gives PGS a boost in otherwise challenging marketCompany News // January 22, 2016
PGS says the performance of its multi-client buisness helped boost performance in 2015 despite the weak marine seismic market.
In a recent statement, PGS said it expects to report a full year 2015 EBITDA of approximately US$485 million. For the fourth quarter of 2015, the company expects to report consolidated revenues of approximately US$230 million and EBITDA close to US$120 million. The company said achieved "solid" multi-client revenues in the fourth quarter of approximately US$165 million, including approximately US$98 million of pre-funding revenues. Capitalized multi-client cash investment was approximately US$75 million with a corresponding pre-funding level of approximately 130 per cent, highlighting what it described as "the attractiveness of PGS multi-client projects and the reduced earnings volatility from its focus on the multi-client sector.
"Resilient multi-client performance was the main contributor to the full year EBITDA, close to our latest 2015 EBITDA guidance. In the fourth quarter, we managed to increase late sales significantly from the three preceding quarters while maintaining a very high pre-funding level on increased multi-client investments. In the current challenging market environment we find it prudent to adjust the book values of assets acquired in a stronger market," said Jon Erik Reinhardsen, the company's president and CEO.