PGS Reveals $80 Million Year-on-Year Revenue Loss in 2Q 2015

Norwegian oil services firm PGS revealed Thursday a revenue loss of over $80 Million in 2Q 2015, compared to the same period last year.

PGS’ revenues in 2Q 2015 were $255.8 million, which was $81.2 million down on the 2Q 2014 revenue figure of $337 million. EBITDA for the quarter was $125.1 million, which was $45.5 million less than the $170.6 million EBITDA figure recorded in 2Q 2014.

Cash flow from operations for the quarter was $83.1 million, compared to $40.2 million in 2Q 2014, and the company’s multi-client pre-funding revenues of $112 million for 2Q 2015 compared favorably to pre-funding revenues of $74.8 million in the second quarter of last year.

Jon Erik Reinhardsen, president and chief executive officer of PGS, commented in a company statement:

"In a very challenging market, 2Q multi-client pre-funding revenues ended at a solid $112 million. The corresponding pre-funding level was 152 percent, driven by strong funding for ongoing surveys, efficient operations and good sales from projects in the processing stage. Marine contract revenues and margin were negatively impacted by the weak market conditions and slightly more idle time than expected in the quarter.

"We have a strong financial position with a liquidity reserve of $545.7 million and are well positioned to navigate the current market environment. Our cost reduction program is progressing ahead of plan and the full year 2015 target is now increased to approximately $250 million."

In a press release, PGS stated that it expects “market uncertainty and low earnings visibility to continue well into 2016”.

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