Petroleum Geo-Services Q2 Performance Likely to be Weaker

By Joseph R. Fonseca
Monday, July 14, 2014
Image

 

Oslo, Norway, Petroleum Geo-Services ASA (PGS) will present second quarter results on July 24, 2014. The Company expects to report weaker Q2 results than current market expectations.
 

Customers' intentions with regard to seismic purchases, particularly MultiClient, have become less predictable recently. Accordingly, and considering the Q2 results, PGS lowers its full year EBITDA guidance to circa $850 million. It should be noted that because of this reduced predictability, the uncertainty range around the EBITDA guidance is wider than normal.
 
The weak Q2 results are mainly driven by lack of pre-funding for the Triton MultiClient survey in the Gulf of Mexico and to some extent by mobilization delays on some Marine Contract surveys, relating to permitting, weather and technical problems.
 
The Company expects to report consolidated Q2 revenues of approximately $335 million; EBITDA of approximately $170 million and EBIT before impairments of approximately $55 million.  In addition, an impairment charge of approximately $10 million is expected related to vessel and equipment retirement.
 
With the exception of the delay in securing pre-funding for the Triton survey, MultiClient pre-funding is progressing well. Excluding investment in the Triton survey, the Q2 pre-funding for the remaining MultiClient portfolio is approximately 150% of capitalized MultiClient cash investment.
 
With respect to Triton, a fast track product from the survey is now available and the Company expects sales to be closed during 2H.
 
The Company provides this information based on preliminary consolidated Q2 2014 numbers. The Company has not completed all review and control procedures relating to its quarterly reporting, and significant evaluations have not yet been concluded, including tax provisions. The estimates provided in this release are therefore subject to change and the Q2 2014 financial statements finally approved and released by the Company may deviate materially from the information herein.
 
A more complete review of financial performance and market perspectives will be provided at the issuance of the Company's Q2 2014 Earnings Release on July 24, 2014.
 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Royal Caribbean Cuts Profit Forecast

Royal Caribbean Cruises Ltd cut its adjusted profit forecast for the year, citing a jump in fuel prices since its January forecast and a strong dollar.   Shares

Baltic Index Up Slightly on Higher Rates for Large Vessels

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose slightly on Monday due to firmer rates for the large vessel segments.

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

News

SAAM SMIT Towage Brazil Signs on with Helm

Helm Operations has signed on Brazilian harbor services company SAAM SMIT Towage to its Helm Marine Operations software to manage its billing and dispatch.    SAAM

Siemens Wins Vessel Electrical Installation Contract

Nautilus Minerals Inc. announces that the order for the supply of the entire electrical installation for the production support vessel has been awarded to Siemens International Trading (Shanghai) Ltd.

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1709 sec (6 req/sec)