PGS: 3rd Quater Results – Revenues Up, EBITDA Down
Highlights Q3 2014: Challenging Market Good Contract and Cash Flow Performance
- Revenues of $394.2 million, compared to $365.6 million in Q3 2013
- EBITDA of $181.7 million, compared to $216.0 million in Q3 2013
- EBIT, excluding impairments, of $77.5 million, compared to $108.3 million in Q3 2013
- Group EBIT margin, excluding impairments, of 20%, compared to 30% in Q3 2013
- Cash flow from operations of $230.7 million, compared to $189.4 million in Q3 2013
- Strong balance sheet with $470.4 million liquidity reserve
- EPS of $0.04, compared to $0.35 in Q3 2013
- Bought back own shares for $4.9 million
- Sold Pacific Explorer and decommissioned Nordic Explorer, while Atlantic Explorer is rigged down to 2D – giving quarterly operational cost savings of approximately $10 million effective Q4 2014
- Cost reduction programs expanded and on track
“We have during Q3 experienced deteriorating market conditions, including a weakening of the oil price. The cautious spending behaviour among oil companies continues to negatively impact bidding, pricing and utilization. Despite the challenging market environment we have delivered solid marine contract performance. The benefits of attractive rates secured well in advance and good production levels drove a significant improvement in marine contract EBIT margins from the first half of the year, rising to 27%.
However, in MultiClient we experienced lower sales than expected. The shortfall is primarily due to lack of pre-funding from the Triton MultiClient survey in the Gulf of Mexico.
