Petroleum Geo-Services ASA : Fourth Quarter and Preliminary Full Year 2014 Results
PGS: Strong 2014 MultiClient Late Sales – Well Placed to Navigate Current Market Environment
Revenues of $1,453.8 million, compared to $1,501.6 million in 2013Highlights 2014
- EBITDA of $702.6 million, compared to $828.9 million in 2013
- EBIT, excluding impairments, of $178.0 million, compared to $397.1 million in 2013
- Group EBIT margin, excluding impairments, of 12%, compared to 25% in 2013
- Cash flow from operations of $584.3 million, compared to $775.3 million in 2013
- Recorded impairments of $73.8 million (of which $39.7 million in Q4)
- Higher MultiClient amortization, reflects Triton sales and increased market uncertainty
- Took delivery of Ramform Atlas in Q1, further reducing fleet’s average costs
- Beat target for 2014 cost reduction program, with $90 million reduced cost
- Further strengthened long term financing through Term Loan B extension and securing export credit financing for the two last Ramform Titan-class vessels
- Strong balance sheet with $454.7 million liquidity reserve and no significant debt maturities before 2018
“MultiClient late sales of $120.0 million in Q4 is a new record for PGS. Despite the challenging market there has been good appetite for quality data in the right locations. The marine contract EBIT margin was negatively impacted by weaker pricing and utilization in in the quarter, and for the full year it ended at 15%.
The low oil price and cautious spending behaviour among oil companies continue to impact bidding, pricing and vessel utilization. Visibility is low and we are continuing our proactive approach to prepare for the challenging year ahead. Having already stacked low-end capacity vessels and with further measures being implemented, we expect a cost reduction of $190 million in 2015, excluding growth of our asset light activities and schedule driven changes.
First quarter 2015 will be weak, especially for Marine Contract. Over the last years we have positioned the Company to perform over the cycle – with a solid balance sheet, MultiClient discipline and the most productive fleet in the industry. We are well placed to navigate in the current market environment.
Our full year 2015 guidance is reiterated, but the current market remains very uncertain.”
Jon Erik Reinhardsen, President and Chief Executive Officer
