Highlights Q1 2023
- Produced Revenues (see Note 1 and 2) of $172.2 million, compared to $140.3 million in Q1 2022
- Produced EBITDA of $71.5 million, compared to $55.9 million in Q1 2022
- Revenues and Other Income according to IFRS of $143.1 million, compared to $136.2 million in Q1 2022
- EBIT (ex. impairments and other charges, net) according to IFRS a loss of $16.1 million, compared to a loss of $20.6 million in Q1 2022
- Cash flow from operations of $134.4 million, compared to $63.4 million in Q1 2022
- Cash and cash equivalents of $154.1 million
- Completed refinancing and reduced interest-bearing debt by $245 million
- Awarded the first ultra-high resolution offshore windfarm site characterization project, sealing the entry into a strategically important new energy market
- Rigging Ramform Victory for seismic data acquisition in Brazil
Rune Olav Pedersen, President and Chief Executive Officer, said:
'In Q1 2023 our Produced Revenues increased 23% year-over-year, driven by higher contract revenues and strong pre-funding for ongoing MultiClient acquisition projects. We used a majority of vessel time on attractive contract work with pricing continuing on a positive trend. For our MultiClient projects we secured strong client commitments and report a pre-funding level of 130% in the quarter, well above our targeted range.
MultiClient late sales fluctuate between quarters and were low in Q1, primarily due to delays in completing several sales transactions. However, we expect these processes to close in the coming quarters and our late sales expectations for the full year are unchanged.
We completed our refinancing in Q1 by issuing a new $450 million senior secured bond with a 4-year tenor. The proceeds, together with cash on the balance sheet, were used to repay $600 million of our Term Loan B. In total we have reduced interest-bearing debt by $245 million in the quarter. We have a strong liquidity reserve and cash flow generation, and I am confident we will continue to improve our capital structure going forward.
The seismic market is in recovery, and we are increasingly benefiting from the improving market fundamentals.'
Outlook
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, as the global energy transition evolves. 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 $160 million.
Approximately 60% 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 $377 million on March 31, 2023. On December 31, 2022, and March 31, 2022, the Order book was $416 million and $315 million, respectively.
A complete version of the Q1 2023 earnings release and presentation can be downloaded from www.newsweb.no or www.pgs.com.
Click here for First Quarter 2023 Presentation
Source: PGS
