PGS ASA: Q1 2021 Update
Based on a preliminary review, PGS expects to report Revenues and Other Income As Reported* according to IFRS for Q1 2021 of approximately $166 million, compared to $128.8 million in Q1 2020.
Segment* Revenues and Other Income for Q1 2021 are expected to be approximately $132 million, compared to $168.3 million in Q1 2020.
Contract revenues ended at approximately $26 million ($85.4 million in Q1 2020). Segment MultiClient pre-funding revenues were approximately $46 million ($40.7 million in Q1 2020), and MultiClient late sales revenues approximately $49 million ($33.5 million in Q1 2020). Revenues and Other Income in Q1 2021 include approximately $6 million of US government grants.
The difference between As Reported revenues and Segment revenues relates to MultiClient pre-funding where the As Reported MultiClient pre-funding revenues for Q1 are expected to be approximately $80 million ($1.2 million in Q1 2020).
“I am pleased to see an increase of our MultiClient sales compared to Q1 2020 and a significant sequential improvement in vessel utilization. We continue to experience a general recovery of demand and remain with the view that 2021 will show improvement compared to 2020,” says President & CEO Rune Olav Pedersen.
PGS routinely releases information about 3D vessel utilization after the end of each quarter.
Summary of Q1 2021 vessel allocation:
| Approximate allocation of PGS operated 3D towed streamer capacity | Quarter ended | Quarter ended December 31, | |
| 2021 | 2020 | 2020 | |
| Contract seismic | 34% | 47% | 8% |
| MultiClient seismic | 55% | 43% | 41% |
| Steaming | 7% | 9% | 13% |
| Yard | 0% | 1% | 3% |
| Stacked/Standby | 4% | 0% | 35% |
The Q1 2021 vessel statistics includes five vessels. All cold-stacked** vessels are excluded from the statistics. The comparative period Q1 2020 is based on eight vessels, while Q4 2020 is based on five vessels.
The Company provides this information based on a preliminary summary of Q1 2021 revenues. The Company has not completed its financial reporting and related consolidation, review and control procedures, including the final review of all sales against the established revenue recognition criteria. The estimates provided in this release are therefore subject to change and the Q1 2021 financial statements finally approved and released by the Company may deviate from the information herein.
PGS will release its Q1 2021 financial statements on Thursday April 22, 2021 at approximately 8:00am Central European Summer Time (CEST). A corresponding presentation is scheduled for 09:00am CEST the same day.
*For the purpose of Segment reporting, MultiClient prefunding revenues are recognized on a percentage of completion (“POC”) basis, and the related amortization of MultiClient library is based upon the ratio of aggregate capitalized survey costs to forecasted sales. This differs from IFRS reporting which recognizes revenue from MultiClient prefunding agreements and related amortization at the “point in time” when the customer receives access to, or delivery of, the finished data. For further description of the principles applied, see details in the 2020 annual report under Segment disclosure page 68 and Alternative Performance Measures page 52. Adjustments between preliminary IFRS and Segment revenue numbers for Q1 2021 are shown in the table below.
| Revenue and Other Income, As Reported | $166 million |
| Less Revenue for projects with IFRS performance obligations met during Q1 for completed projects | $80 million |
| Add Revenue recognized on a POC basis during Q1 | $46 million |
| Segment Revenues and Other Income | $132 million |
**The term “cold-stacked” is used when a vessel is taken out of operation for an extended period of time. Costs are reduced to a minimum, with the vessel preserved for a long idle time, all or most in-sea seismic equipment removed from the vessel, and typically the Company does not have available crew to operate the vessel.
