Geo-Services ASA has announced the best second quarter ever with an earnings before interest and tax (EBIT) of $143.9 million, up $12.9 million compared to second quarter 2007. Record quarterly revenues of $465.1 million, were up $8.5 million from the previous record set in first quarter 2008. The order backlog has doubled in one year and is now at an all time high of $1,081 million, which is an excellent foundation for future earnings.
Record Order Book
For the first time in PGS' history as a focused geophysical company the order backlog exceeds $1 billion, reaching $1,081 million at end Q2 2008 up 19% from Q1 2008. Order backlog for Marine was $968 million and for Onshore $113 million. Tendering activity is also at record levels.
Strong revenue increase: Q2 revenues were $465.1 million, up $109.2 million (31%) compared to Q2 2007. EBIT was $143.9 million in Q2 2008, up $12.9 million (10%) compared to Q2 2007.
EBIT was $159.8 million in Q2 2008, up $30.5 million (24%) from Q2 2007, driven primarily by increased level of contract activity and increased capacity as a result of Ramform Sovereign entering the fleet, offset by lower productivity, especially in May due to streamer incidents and weather.
EBIT was $0.6 million, down $5.4 million from Q2 2007, caused primarily by lower activity in North Africa, as communicated earlier.
Jon Erik Reinhardsen, President and CEO of PGS, commented, "We have delivered the strongest second quarter ever. Still, the outcome of the challenging operating environment in Q2 was not up to our expectations. We have since seen vessel productivity return to a normal level at the end of the quarter. Looking forward, the increasing demand for seismic services is reflected in our record order book, which now has surpassed one billion dollars for the first time."
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