PGS ASA

Earnings Release • Jul 21, 2022

PGS ASA: Second Quarter and First Half 2022 Results

PGS ASA: Second Quarter and First Half 2022 Results

Improving Financial Position in a Recovering Market

Takeaways Q2 2022

* Revenues and Other Income of $273.6 million, compared to $185.9 million in

Q2 2021

* EBITDA of $193.3 million, compared to $118.5 million in Q2 2021

* EBIT (ex. impairments and other charges) of $57.8 million, compared to a

loss of $7.6 million in Q2 2021

* Cash flow from operations of $43.7 million, compared to $81.4 million in Q2

2021

* Cash and cash equivalents of $219.8 million, compared to $155.4 million in

Q2 2021

* Successful private placement secured approximately $85 million in new equity

* Obtained commitments for $50 million of new, senior secured debt

* Leveraged multiyear Equinor frame agreement with several projects for the

2022 summer season

* Secured large MultiClient campaign in the North Sea and expanding

MultiClient coverage offshore Canada

* Awarded large 4D contract offshore West Africa, securing utilization for one

vessel until summer 2023

* Awarded the Smeaheia carbon storage acquisition contract by Equinor

"We continue to see an improving marine seismic market. We delivered the second

highest quarterly revenues since Q4 2014 and a positive net income for the

quarter.

Our Q2 MultiClient late sales revenues almost doubled from Q1 and increased 65%

year-over-year. Significant MultiClient sales, including high transfer fees, are

a confirmation that our MultiClient library is highly attractive to customers

and that investment in exploration seismic is again increasing. Higher

exploration interest further enabled us to secure strong pre-funding for new

MultiClient surveys, including our first large scale MultiClient survey in the

Norwegian Sea since 2020 and a significant survey in South Bank, offshore

Canada.

All our six active 3D vessels came back in operation during Q2. The contract

acquisition market continued to improve in the quarter and dominated our vessel

activity. However, contract revenues were impacted by steaming and standby early

in the quarter, and by mobilization on two surveys where production and revenue

impact primarily will be in Q3 and Q4.

We successfully completed a private placement in the quarter securing

approximately $85 million of new equity and obtained commitments for $50 million

of new senior secured debt. In addition, the subsequent offering of

approximately $14 million was completed last week. The transactions increase our

liquidity going forward by close to $150 million. With the improved funding

position and an improving market and better cash flow generation, I believe we

are well positioned to refinance ahead of Q3 2023.

Our New Energy business continues to gain momentum. We have been awarded four

carbon storage acquisition surveys for 2022, most recently over the Smeaheia

carbon storage site for Equinor. Further we secured access to the market leading

P-cable system, which we believe will be valuable in the offshore wind and other

applications requiring ultra-high resolution.

We increased our order book by almost 15% during the quarter, our fleet is fully

booked through Q3 and the winter season is already firming up with activity and

pricing continuing on a positive trend."

Rune Olav Pedersen,

President and Chief Executive Officer

Outlook

PGS expects global energy consumption to continue to increase longer term with

oil and gas remaining an important part of the energy mix, as the global energy

transition evolves. Offshore reserves will be vital for future energy supply and

support demand for marine seismic services. With high oil and gas prices, the

seismic market has entered a recovery phase, and the positive trend is expected

to continue due to increasing investments among energy companies. Russia's

invasion of Ukraine has significantly increased the general focus on energy

security and, combined with several years of low investment in new oil and gas

supplies, has further increased oil and gas prices and investment pressures on

energy companies.

The seismic acquisition market is likely to benefit from a significant reduction

of operated vessel supply over several years. In 2022 we see an increasing

demand for seismic acquisition services related to carbon capture and storage

projects and currently expect to generate revenues of approximately $30 million

relating to our New Energy business for the full year.

PGS expects full year 2022 gross cash costs to be approximately $500 million, an

increase from the approximately $475 million guided earlier due to increased

project activity.

2022 MultiClient cash investments are expected to be approximately $125 million.

Approximately 65% of 2022 active 3D vessel time is expected to be allocated to

contract work.

Capital expenditures for 2022 is expected to be approximately $60 million.

The order book totaled $359 million on June 30, 2022. On March 31, 2022, and

June 30, 2021, the order book was $315 million and $410 million, respectively.

Please note that the Company's order book is now disclosed on a basis consistent

with IFRS 15. This is a change compared to the order book disclosed in financial

reports before 2022. Reference is made to Note 1 and Appendix.

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

| | | | |

| | | | |

| | | | |

| | | | |

| | 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) | 2022 | 2021 | 2022 | 2021 | 2021 |

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

|  |  |  |  |  |  |

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

|Profit and loss numbers |  |  |  |  |  |

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

|Revenues and Other Income| 273.6| 185.9| 409.9| 351.7| 703.8|

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

|EBITDA | 193.3| 118.5| 245.2| 236.2| 434.0|

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

|EBIT ex. Impairment and | | | | | |

|other charges, net | 57.8| (7.6)| 37.3| (12.8)| (32.0)|

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

|Net financial items | (32.7)| (16.2)| (53.4)| (49.8)| (97.6)|

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

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

|income tax expense | 28.0| (23.5)| (16.2)| (59.5)| (163.8)|

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

|Income tax expense | (9.3)| (2.5)| (14.3)| (5.7)| (15.6)|

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

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

|equity holders | 18.7| (26.0)| (30.5)| (65.2)| (179.4)|

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

|Basic earnings per share | | | | | |

|($ per share) | 0.04| (0.07)| (0.07)| (0.17)| (0.45)|

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

|  |  |  |  |  |  |

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

|Other key numbers |  |  |  |  |  |

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

|Net cash provided by | | | | | |

|operating activities | 43.7| 81.4| 107.0| 170.0| 326.6|

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

|Cash Investment in | | | | | |

|MultiClient library | 26.2| 25.7| 47.7| 69.0| 127.2|

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

|Capital expenditures | | | | | |

|(whether paid or not) | 16.2| 11.3| 35.1| 17.5| 33.4|

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

|Total assets |1,822.6|1,946.2|1,822.6|1,946.2| 1,792.8|

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

|Cash and cash equivalents| 219.8| 155.4| 219.8| 155.4| 170.0|

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

|Net interest-bearing debt| 887.2| 954.5| 887.2| 954.5| 936.4|

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

|Net interest-bearing | | | | | |

|debt, including lease | | | | | |

|liabilities following | | | | | |

|IFRS 16 | 985.8|1,093.6| 985.8|1,093,6| 1,051.3|

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

A complete version of the Q2 2022 earnings release and presentation can be

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

The Q2 2022 audiocast can be accessed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20220721_4/

Audiocast social media link:

https://channel.royalcast.com/webcast/hegnarmedia/20220721_4

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 2021 and the Q2 2022 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.