PGS ASA

Investor Presentation • Jul 20, 2023

Oslo, July 20, 2023 Second Quarter 2023 Presentation

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Cautionary Statement

• This presentation contains forward looking information
• Forward looking information is based on management assumptions and analyses
• Actual experience may differ, and those differences may be material
• Forward looking information is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future
• This presentation must be read in conjunction with the Q2 2023 earnings release and the disclosures therein

Agenda Q2 2023 Earnings Presentation

Rune Olav Pedersen, President & CEO

Q2 highlights Financial summary Order book

Gottfred Langseth, EVP & CFO

Financial review

Rune Olav Pedersen, President & CEO

Operational update and market comments Guidance Summary and Q&A

Q2 2023 Highlights

Improving contract rates and margins

• Further progress in Q2
• Strong increase in leads for contract work

Sequential MultiClient revenue increase • MultiClient pre-funding level of 127% • Late sales more than doubled from Q1

Significant progress in offshore wind

• Commenced first project in Q2
• Considerable client interest
• Awarded large contract commencing in Q3

Secured new \$75 million term loan

• Will be used to partly repay the existing March 2024 TLB maturity
• Increasing Q1 2024 liquidity headroom

Financial Summary

Contract Late sales Other Pre-funding

Order Book Development

• Order book of \$341 million as of June 30, 2023
• Booked position*
  • Q3 23: 21 vessel months
  • Q4 23: 17 vessel months
  • Q1 24: 8 vessel months
• Ramform Victory reintroduced end June
  • Will acquire MultiClient in Norway before steaming to Brazil later in the quarter

Gottfred Langseth, EVP & CFO Q2 and First Half 2023 Financials

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Consolidated Key Financial Figures

(In millions of US dollars per share data) , except	Q2 2023	Q2 2022	YTD 2023	YTD 2022	Year ended December 31 , 2022
Segment Reporting
Produced Revenues	186 4	209 7	358 5	350 0	817 2
Produced EBITDA	113 1	129 4	184 4	185 3	446 7
Produced EBIT	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)
(loss) before Income 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)
(loss) Net income equity holders to	(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

Segment Reporting

• Produced revenues down 11% from Q2 2022 due to lower late sales

As Reported numbers

• Low volume of MultiClient surveys completed and delivered to customers in Q2

Q2 2023 Operational Highlights

Contract revenues of \$70.5 million

• 43% of active time used for contract acquisition
• Improving pricing and EBIT margin

Produced MultiClient revenues of \$109.0 million

• Late sales more than doubled sequentially
• Strong client commitments secured prefunding level of 127%
• Cash investment in MultiClient library of \$42.9 million

3D Vessel Allocation and Utilization

• 76% active vessel time in Q2 2023
  • Harsh weather at the start of the North Sea season
  • Ramform Sovereign delayed on yard in Asia Pacific
• Q2 standby time due to contract termination for Ramform Titan
• Indicative 2H 2023 vessel allocation
  • Six out of seven 3D vessels on MultiClient projects in Q3
  • Significant overweight of allocation to contract in Q4

Contract MultiClient Steaming Yard Stacked/Standby

Gross Cash Cost Development

Balance Sheet Key Numbers

In millions of US dollars	June 30 2023		June 30 2022		December 31 2022
Total assets	1,688.9		1,822.6		1,953.3
MultiClient Library	317.6		321.6		300.3
Shareholders' equity	443.6		332.4		510.3
Cash and cash equivalents (unrestricted)	137.1		219.8		363.8
Restricted cash	65.4		72.1		70.8
Gross interest-bearing debt	794.8		1,179.1		1,051.3
Gross interest-bearing debt, including lease liabilities following IFRS 16	876.8		1,277.7		1,138.5
Net interest-bearing debt	592.3		887.2		616.7
Net interest-bearing debt, including lease liabilities following IFRS 16	674.3		985.8		703.9
• Cash and cash equivalents (unrestricted) of \$137.1 million
• Net interest-bearing debt of \$592.3 million as of end Q2 2023

- Cash and cash equivalents (unrestricted) of \$137.1 million

Consolidated Statements of Cash Flow

	Q2	Q2	YTD	YTD	Full year
In millions of US dollars	2023	2022	2023	2022	2022
Net cash provided by operating activities	99.4	43.7	233.8	107.0	371.3
Investment in MultiClient library	(42 9)	(26 2)	(77 8)	(47 7)	(106 4)
Investment in and equipment property	(33 1)	(11 0)	(53 2)	(26 8)	(48 6)
Other investing activities	(2 3)	(2 1)	(5 2)	(4 5)	(6 8)
Net cash flow before financing activities	21.1	4.4	97.6	28.0	209.5
Interest paid on interest-bearing debt	(7 4)	(21 9)	(33 1)	(41 8)	(90 5)
Proceeds of deferred loan from issuance of long-term debt , net cost,	(9 2)		432 5
of Repayment interest-bearing debt	(11 7)	-	(706 6)	-	(123 0)
from Proceeds share issue and share buy back	-	82 7	-	82 7	241 0
of (recognized IFRS 16) Payment lease liabilities and related interest under	(9 8)	(10 7)	(19 6)	(21 9)	(42 5)
Decrease (increase) in restricted cash related debt service non-current to	-	1 4	2 5	2 8	(0 7)
Net increase (decr ) in cash and cash equiv	(17 .0)	55 .9	(226 .7)	49.8	193.8
Cash and cash equiv beginning of period . at	154 1	163 9	363 8	170 0	170 0
Cash and cash equiv end of period . at	137.1	219.8	137.1	219.8	363.8

• Significant cash flow growth compared to Q2 and first half 2022
• Lower working capital due to favorable payment profile on acquisition projects and phasing of revenues

Proactively Managing Near-term Debt Maturities

0 100 200 300 400 500 600 Q3 23 Q4 23 2024 2025 2026 2027 USD million New debt maturity profile

Export Credit Financing Super Senior Loan* Senior Secured Bond Term Loan B New term loan * PGS has an option to extend maturity of the Super Senior Loan from March 2024 to March 2025.

• Secured commitments for new \$75 million term loan to partly refinance existing \$138 million March 2024 Term Loan B ("TLB") maturity
  • Further increases the headroom in financial planning
  • Aligned with PGS debt reduction strategy Repayable at par from June 2024
  • Same interest rate as TLB
• Will be drawn in Q3 with net proceeds to pay down TLB balance
• Main terms new term loan
  • SOFR+7% with quarterly interest payments
  • Issued at 95% of par value (OID)
  • 6.25% quarterly amortization starting in June 2024
  • Financial covenants aligned with the \$450 million bonds
  • Matures December 15, 2026

Strong Cash Flow Generation Last Twelve Months

Net interest-bearing debt

• LTM* cash flow before financing activities of \$279 million in an improving seismic market
  • LTM cash flow before debt repayment (after lease and interest payments) of \$157 million
• Net interest-bearing debt reduced by close to \$300 million from Q2 '22 to Q2 '23

Rune Olav Pedersen, President & CEO Operational Update and Market Comments

Fleet Activity July 2023

Q2 Contract Termination – Utilization of Ramform Titan

• Received notice of contract termination for Ramform Titan in June
  • Entitled to termination fee
  • In discussion with client regarding additional reimbursables
• Vessel currently mobilizing for a MultiClient survey offshore Egypt with significant client interest
  • Expect to secure pre-funding
• Next project for Ramform Titan is also in Egypt

Improving Contract Sales Leads and Active Tenders

• Sales leads at highest level since December 2014
  • Increasing amount of formal "Request for Interest" or similar
• Active tenders build momentum from the high sales leads

• Seismic vessel supply reduced from almost 60 3D vessels in 2013 to ~17 in today's market
• Seismic vessel supply in 2019 was ~25 3D vessels
• Majority of capacity controlled by PGS and Shearwater

New Energy – Significant Progress in Offshore Wind

• Commenced first offshore wind site characterization project in Q2 for partners bp and EnBW in the Irish Sea
• PGS offering attracts considerable client interest
• Awarded large offshore windfarm site characterization in the US
  • Mobilization in August and acquisition scheduled to complete in February 2024
• Expect to procure a second Ultra High Resolution 3D streamer set
  • Capex USD ~5 million
• Sanco Swift rigged as offshore wind site characterization vessel
  • Agreed a new charter period of two years
  • Potential for reentering seismic 3D market when demand allows

	Group cash cost	MultiClient cash investment	Active 3D vessel time allocated to Contract	Capital expenditures
2023 Guidance	~\$550 million	~\$180 million	~50%	~\$100 million
Year-to-date	\$263.8 million	\$77.8 million	56%	\$52.7 million

Summary

23

Thank You

Questions?

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Appendix Planned Yard Stays* Next Quarters

Vessel	When	Expected duration	Type of yard stay
Ramform Titan	Q3 2023	10 days	General maintenance and SourceLink upgrade
Ramform Victory	Q3 2023	14 days	Source controller upgrade
Ramform Atlas	Q4 2023	7 days	Intermediate classing
Ramform Tethys	Q4 2023	25 days	Drydock for 7.5-year classing and general maintenance