PGS Cold-Stacks another Vessel to Reduce Costs

Norwegian oil services firm PGS announced Wednesday that it will cold-stack the Ramform Viking vessel, after it completes a multiclient project offshore East Newfoundland in October 2015, In order to reduce cost and capital expenditure.

The vessel was originally scheduled for a yard stay and classing in the first quarter of 2016, which will now be deferred.  Equipment from the Ramform Viking will be used on vessels in operation, which will reduce the company's capital expenditure related to maintenance in 2016 by approximately $50 million, according to PGS.

In addition to the Ramform Viking, PGS announced on April 30, 2015 that the Ramform Explorer and Ramform Challenger will be cold-stacked after the end of the North Europe acquisition season this year. PGS has stated that the cold-stacking of the three Ramform vessels will reduce quarterly cash costs by approximately $25-30 million.

PGS revealed on July 23, 2015 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.

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