Seismic Surveyor PGS Sees Higher Demand From Oil Companies, 4Q Lags

Reuters

OSLO, Feb 16 (Reuters) - Seismic surveyor PGS expects an increase in demand from oil companies in 2017 after years of cutbacks, as it reported fourth-quarter results that lagged forecasts on Thursday.

The company, which maps out the seabed for oil firms in search of hydrocarbon deposits, has been struggling in recent years as persistently low crude prices have led to low demand for its services.

But on Thursday it suggested that there could be better days ahead as the price of Brent crude has stabilised at above $50 since December and oil companies have improved their cash flows following years of cost-cutting.

"The Company expects the volume of marine 3D seismic acquired by the industry to increase in 2017 compared to 2016," it said in a statement.

In the fourth quarter, PGS posted a loss before interest and taxes and excluding one-offs of $65 million, deeper than the expected loss of $38 million expected in a Reuters poll, and deeper than the loss of $23 million posted at the same time a year ago.

It also confirmed it had completed refinancing to reduce its debts and extended maturities to 2020.

(Reporting by Gwladys Fouche, editing by Terje Solsvik)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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