PGS ASA

Earnings Release • Jul 20, 2023

PGS ASA: Second Quarter and First Half 2023 Results

PGS ASA: Second Quarter and First Half 2023 Results

Continued Increase in Contract Rates

Highlights Q2 2023

* Produced Revenues of $186.4 million, compared to $209.7 million in Q2 2022

* Produced EBITDA of $113.1 million, compared to $129.4 million in Q2 2022

* Produced EBIT (ex. Impairments and other charges, net) of $23.2 million,

compared to $50.1 million in Q2 2022

* Revenues and Other Income according to IFRS of $156.0 million, compared to

$273.6 million in Q2 2022

* Cash flow from operations of $99.4 million, compared to $43.7 million in Q2

2022

* Commenced acquisition of PGS first offshore wind site characterization

survey

* Secured another multi-season MultiClient project in the Norwegian Sea,

evidencing renewed exploration interest in the region

"We achieved a MultiClient pre-funding level of 127% of capitalized cash cost in

the quarter, and we continue to deliver improving rates and margins on our

contract work. The strong acquisition revenues are achieved despite weather

related challenges for our vessels working on the Norwegian continental shelf in

the early part of the Europe season, and a delayed yard stay for the Ramform

Sovereign. Further, I am pleased to see a meaningful increase in MultiClient

late sales, which more than doubled from the first quarter this year.

Our New Energy business continues to progress and in Q2 we commenced acquisition

of our first offshore wind site characterization survey in the Irish Sea. Our

offshore wind site characterization offering has attracted considerable client

interest, and we recently announced another large contract in the US by a

leading renewable energy company with mobilization scheduled for August and

completion scheduled for February next year.

Our order book remains at a high level, and we are now in the process of booking

capacity for the early part of the winter season. We expect the contract bidding

activity to increase driven by the highest volume of sales leads since December

We refinanced earlier this year deliberately leaving $138 million of our Term

Loan B to be repaid in March 2024. According to our estimates we can manage this

repayment with our liquidity reserve and the cash flow we expect to generate

over the next quarters. However, to further increase the liquidity headroom and

financial robustness we announced today that we have secured commitments of $75

million from supportive creditors for a separate facility to refinance parts of

the March 2024 Term Loan B maturity."

Rune Olav Pedersen,

President and Chief Executive Officer

Outlook

As the global energy transition evolves, PGS expects global energy consumption

to continue to increase over the longer term with oil and gas remaining an

important part of the energy mix. Offshore reserves will be vital for future

energy supply and support demand for marine seismic services. The seismic market

is recovering on the back of increased focus on energy security, several years

of low investment in new oil and gas supplies, and higher oil and gas prices.

Offshore investments in oil and gas exploration and production are expected to

increase in 2023. The seismic acquisition market is likely to benefit from the

higher exploration and production spending, and a limited supply of seismic

vessels.

PGS expects full year 2023 gross cash costs to be approximately $550 million.

The increase from 2022 is primarily due to the higher activity level and more

capacity in operation.

2023 MultiClient cash investments are expected to be approximately $180 million.

Approximately 50% of 2023 active 3D vessel time is expected to be allocated to

contract work.

Capital expenditures for 2023 is expected to be approximately $100 million.

The order book amounted to $341 million on June 30, 2023. On March 31, 2023, and

June 30, 2022, the Order book was $377 million and $311 million, respectively.

+-------------------------+---------------+---------------+--------------------+

| | | | |

| | | | |

| | Quarter ended | Year to date |Year ended December |

| | June 30, | June 30, | 31, |

| +-------+-------+-------+-------+--------------------+

| | | | | | |

|Consolidated Key | | | | | |

|Financial Figures | | | | | |

|(In millions of US | | | | | |

|dollars, except per share| | | | | |

|data) | 2023 | 2022 | 2023 | 2022 | 2022 |

+-------------------------+-------+-------+-------+-------+--------------------+

|  |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Segment reporting |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Produced Revenues | 186.4| 209.7| 358.5| 350.0| 817.2|

+-------------------------+-------+-------+-------+-------+--------------------+

|Produced EBITDA | 113.1| 129.4| 184.5| 185.3| 446.7|

+-------------------------+-------+-------+-------+-------+--------------------+

|Produced EBIT ex | | | | | |

|impairments and other | | | | | |

|charges, net | 23.2| 50.1| 3.3| 18.6| 108.8|

+-------------------------+-------+-------+-------+-------+--------------------+

|  |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Profit and loss numbers, | | | | | |

|As Reported |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Revenues and Other Income| 156.0| 273.6| 299.1| 409.9| 825.1|

+-------------------------+-------+-------+-------+-------+--------------------+

|EBIT ex. impairment and | | | | | |

|other charges, net | 25.1| 57.8| 8.9| 37.3| 117.1|

+-------------------------+-------+-------+-------+-------+--------------------+

|Net financial items | (23.1)| (32.7)| (60.7)| (53.4)| (112.7)|

+-------------------------+-------+-------+-------+-------+--------------------+

|Income (loss) before | | | | | |

|income tax expense | (4.2)| 28.0| (58.0)| (16.2)| (6.7)|

+-------------------------+-------+-------+-------+-------+--------------------+

|Income tax expense | (5.1)| (9.3)| (10.2)| (14.3)| (26.1)|

+-------------------------+-------+-------+-------+-------+--------------------+

|Net income (loss) to | | | | | |

|equity holders | (9.3)| 18.7| (68.2)| (30.5)| (32.8)|

+-------------------------+-------+-------+-------+-------+--------------------+

|Basic earnings per share | | | | | |

|($ per share) | (0.01)| 0.04| (0.08)| (0.07)| (0.06)|

+-------------------------+-------+-------+-------+-------+--------------------+

|  |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Other key numbers |  |  |  |  |  |

+-------------------------+-------+-------+-------+-------+--------------------+

|Net cash provided by | | | | | |

|operating activities | 99.4| 43.7| 233.8| 107.0| 371.3|

+-------------------------+-------+-------+-------+-------+--------------------+

|Cash Investment in | | | | | |

|MultiClient library | 42.9| 26.2| 77.8| 47.7| 106.4|

+-------------------------+-------+-------+-------+-------+--------------------+

|Capital expenditures | | | | | |

|(whether paid or not) | 23.0| 16.2| 52.7| 35.1| 50.2|

+-------------------------+-------+-------+-------+-------+--------------------+

|Total assets |1,688.9|1,822.6|1,688.9|1,822.6| 1,953.3|

+-------------------------+-------+-------+-------+-------+--------------------+

|Cash and cash equivalents| 137.1| 219.8| 137.1| 219.8| 363.8|

+-------------------------+-------+-------+-------+-------+--------------------+

|Net interest-bearing debt| 592.3| 887.2| 592.3| 887.2| 616.7|

+-------------------------+-------+-------+-------+-------+--------------------+

|Net interest-bearing | | | | | |

|debt, including lease | | | | | |

|liabilities following | | | | | |

|IFRS 16 | 674.3| 985.8| 674.3| 985.8| 703.9|

+-------------------------+-------+-------+-------+-------+--------------------+

A complete version of the Q2 2023 earnings release and presentation can be

downloaded from www.newsweb.no or www.pgs.com.

The webcast can be accessed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230720_2/

Webcast YouTube link:

https://youtube.com/live/xrIdrhKL6f8

FOR DETAILS, CONTACT:

Bård Stenberg, VP IR & Communication

Mobile: +47 99 24 52 35

****

PGS ASA and its subsidiaries ("PGS" or "the Company") is an integrated marine

geophysics company, which operates on a world-wide basis. PGS business supports

the energy industry, including oil and gas, offshore renewables and carbon

storage. The Company's headquarter is in Oslo, Norway and the PGS share is

listed on the Oslo stock exchange (OSE: PGS). For more information on PGS visit

www.pgs.com (http://www.pgs.com).

****

The information included herein contains certain forward-looking statements that

address activities, events or developments that the Company expects, projects,

believes or anticipates will or may occur in the future. These statements are

based on various assumptions made by the Company, which are beyond its control

and are subject to certain additional risks and uncertainties. The Company is

subject to a large number of risk factors including but not limited to the

demand for seismic services, the demand for data from our multi-client data

library, the attractiveness of our technology, unpredictable changes in

governmental regulations affecting our markets and extreme weather conditions.

For a further description of other relevant risk factors we refer to our Annual

Report for 2022 and the Q2 2023 earnings release. As a result of these and other

risk factors, actual events and our actual results may differ materially from

those indicated in or implied by such forward-looking statements. The

reservation is also made that inaccuracies or mistakes may occur in the

information given above about current status of the Company or its business. Any

reliance on the information above is at the risk of the reader, and PGS

disclaims any and all liability in this respect.