PGS ASA

Investor Presentation • Jan 27, 2022

Fourth Quarter and Preliminary Full Year 2021 Presentation 2022 Outlook

Oslo, January 27, 2022

• 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 Q4 and preliminary full year 2021 earnings release and the disclosures therein

Agenda Q4 and Preliminary Full Year 2021 Earnings Presentation

Rune Olav Pedersen, President & CEO

• 2021 Review
• 2022 Outlook

Gottfred Langseth, EVP & CFO

• Financing status
• Q4 and preliminary full year 2021 financial review

2021 Review & 2022 Outlook

Rune Olav Pedersen, President & CEO

This presentation must be read in conjunction with the Q4 and Preliminary Full Year 2021 Earnings Release and the disclosures therein.

Full Year 2021 Takeaways: Improving Competitive Position in a Gradually Improving Market

• Higher revenues compared to 2020 when adjusted for Covid-19 related government grants
• 42% increase in contract revenues
  • Overweight of capacity allocated to contract
  • Significant rate increase in 2H
  • Benefit from more near-field exploration and increasing 4D demand
• Mixed development of MultiClient market
  • Reduced industry revenues and investments vs. 2020
  • Increased market share for PGS with strong late sales growth and adequate pre-funding on reduced MultiClient investment
• Established New Energy
  • Already generating meaningful CCS MultiClient revenues and contract order book
• Winter season more challenging than expected
  • Healthy booked position for summer season
• Returned to positive net cash flow generation
• Slower market recovery than assumed in business plan for the 2020 debt rescheduling
  • Will have to address in coming quarters

Financial Summary

Segment EBIT** Cash Flow from Operations -16 -14 -4 -40 -50 -30 -10 USD million

Segment Revenues and Other Income Segment EBITDA*

*EBITDA, when used by the Company, means EBIT excluding Other charges, impairment and loss/gain on sale of long-term assets and depreciation and amortization as defined in Note 14 of the Q4 and preliminary full year 2021 earnings release published on January 27, 2022 **Excluding impairments and Other charges.

Fleet Activity January 2022

Hydrocarbon Energy Sources Will Remain Important in the Energy Mix

• Demand for oil has recovered post the 2020 disruption
  • Expected to continue to grow over the next years
• In any scenario, oil and natural gas is, and will continue to be an important part of the energy mix as the energy transition evolves
  • Natural gas will be increasingly important

Under-investments and Conventional Oil Decline Creates an Energy Challenge

Source: Barclays 37th annual E&P spending report

Total volume of oil and gas discoveries each year

• Global E&P spending declined approximately 55% from 2014 to 2020
  • Reduced approximately 30% from 2019 to 2020
  • Flattish from 2020 to 2021
• Global annual discoveries heading for lowest level in 75 years
• To compensate for annual conventional oil decline there is a need for 3-5mb/d of new greenfield conventional capacity to be sanctioned by end 2022 to meet 2025 demand*

*Source: Wood Mackenzie and TotalEnergies Outlook 2021 momentum scenario.

Source: Rystad Energy

PGS is Capitalizing on Traditional - and Developing new Businesses

Energy Transition: Increasing focus on near-field exploration and 4D

Energy Transition:

PGS New Energy develops green business capitalizing on PGS expertise and assets

2021 Seismic Market Lower Than 2020 - with Positive Contract Development

• The seismic market declined ~6%* in 2021 vs. 2020
• Energy companies are increasingly focusing on nearfield exploration and 4D
• PGS increased revenues in 2021 by allocating more capacity to contract work where rates are improving – Diversified MultiClient library mostly in mature basins

*Based on major seismic companies with publicly reported numbers. **Excluding government grants.

E&P spending growth forecasts*

• Continued under-investment in 2021 and flat development vs. 2020
• Expect higher exploration and production spending in 2022
• Projected increase in investments among energy companies echo clients' feedback regarding seismic plans

Positive Contract Market Sentiment Likely to Continue in 2022

• Bidding activity currently higher than 2H 2021
• Significant volume of leads and tenders for 2022 summer season
• Expect material increase in North Sea 4D activity in 2022

Production Seismic (4D) Will Increase Significantly

Number of 4D surveys

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 E

Multi-sensor Conventional

• More than 30 4D streamer projects planned for 2022 – Previous record is 24 surveys in 2012
• Project planning well advanced with 26 surveys as active bids or already awarded
  • Mostly in Europe and Africa
• Could see further increase in 2022 4D volume

0

5

10

35

Healthy Order Book – Expected to Increase Before Summer Season

• Order book of \$239 million on December 31, 2021
  • \$32 million relating to MultiClient
• Vessel booking*
  • Q1 22: 10 vessel months
  • Q2 22: 11 vessel months
  • Q3 22: 9 vessel months
• Expect to operate four vessels by early February, increasing to six early Q2

16

Further Industry Consolidation in 2021

PGS and Shearwater control most of the seismic vessel capacity

Historically Low Supply with Seasonal Swings

• Seasonal low capacity in Q4 2021
• Improving summer demand likely to trigger some idle capacity to come back
• PGS plans to operate a 6-vessel fleet through 2022

Financial Strategy	PGS Business Strategy
Cash Flow before growth	Leverage integration across the PGS value chain
	Leading provider of nearfield exploration and production (4D) seismic
	Develop New Energy into a significant business unit
Return on Capital Employed	Increase speed and penetration of digitalization
Establish a sustainable capital structure	Reduce operating cost & increase efficiency
	Reduce environmental footprint from our operations

Leveraging Integration Through the PGS Value Chain: Mediterranean Success with Integrated Service Offering

• Manifesting PGS leading position in Egypt by securing 15 vessel months of Titan-class acquisition
  • From July 2020 to mid-March 2021
  • Multiple surveys acquired under PGS MultiClient permit
  • One large survey acquired as a contract job
• Programs primarily cover held acreage awarded in 2020 license round
  • Acquisition commenced shortly after block ratification providing significant timing advantage
• Integrated service offering makes PGS agnostic to the MultiClient or Contract business model
  • Playing across both models delivers the best commercial value for the client and PGS

Leading Provider of Near-field Exploration and Production (4D) Seismic: Maintaining Attractive MultiClient Business while Growing Contract Segment

• PGS has the highest MultiClient revenues since Q2 2020 and the lowest investment level
  • Most of the MultiClient library is in mature and producing basins
• Increasing capacity allocation towards the recovering contract market
  • Energy companies focus on near-field exploration and 4D

Develop New Energy into a Significant Business Unit: Emerging CCS Storage Seismic Market with Significant Future Potential

Emerging CCS seismic market

• Made several data sales in 2021 solely for the purpose of CCS
  • Expect more CCS MultiClient data sales
• CCS baseline 2022 acquisition awards:
  • By bp on behalf of the Northern Endurance Partnership – a joint venture between bp, Equinor, National Grid Ventures, Shell and Total Energies
  • By Equinor on behalf of the Northern Lights JV DA

2050 CO² storage scenarios assessed by IPCC (Gtpa)

Scenarios assessed by IPCC have a median value of ~15 Gt CO² in 2050, approximately double the level in IEA's NZE 2050

CO² storage volumes can be used to estimate potential for vessel demand. Such estimates require several assumptions, including the number of and size of offshore storage projects, survey size and survey frequency

Increase Speed and Penetration of Digitalization: Progressing Well on Digital Transformation to Accelerate Strategy Execution

PGS Digital Factory

• Develops and implements digital use cases to gain new insight from production-scale, data analytics to improve efficiency, predictability and performance
• Partnership with Cognite

PGS Solis - MultiClient data sales platform in the Cloud

• Enables new commercial possibilities – Data Management as a Service, different data access models and marketplace for applications, partnerships and collaboration
• Use Cognite Data Fusion to index, structure and contextualize to liberalize data stored in Google Cloud

PGS EOS - scalable cloud enabled imaging platform

• PGS Eos utilize the benefit of the Google Cloud to access almost unlimited compute capacity and the latest technology
• Flexible and cost-efficient use of compute capacity
• Reducing capital expenditures and removing capacity bottlenecks

Group cash cost	MultiClient cash investment	Active 3D vessel time allocated to Contract	Capital expenditures
~\$450 million	~\$125 million	~65%	~\$60 million

Summary

• Overall seismic market weaker in 2021 vs. 2020
  • Contract market recovery and mature area MultiClient position benefit PGS relative performance
• Revised and updated strategy
  • Continue to develop leading position in near-field exploration and production (4D) markets
  • Established New Energy
  • Leveraging integrated business model
• Healthy order book
  • Winter season more challenging than expected
  • Good outlook for summer season
• Expect an improving seismic market in 2022

Financing Status Q4 and Preliminary Full Year 2021 Financials

Gottfred Langseth, EVP & CFO

This presentation must be read in conjunction with the Q4 and Preliminary Full Year 2021 Earnings Release and the disclosures therein.

Balance Sheet Key Numbers As Reported

In millions of US dollars	December 31 2021	December 31 2020
Total assets	1 792 8 ,	2 093 8 ,
MultiClient Library	415 6	616 1
Shareholders' equity	245 1	396 4
Cash and cash equivalents (unrestricted)	170 0	156 7
Restricted cash	73 7	76 6
Gross interest bearing debt	1 180 1 ,	1 170 9 ,
Gross interest bearing debt including lease liabilities following IFRS 16 ,	1 295 0 ,	1 329 5 ,
Net interest bearing debt	936 4	937 6
IFRS Net interest bearing debt including lease liabilities following 16 ,	1 051 3 ,	1 096 2 ,

• Cash and cash equivalents (unrestricted) of \$170.0 million
• Net interest-bearing debt (including lease liabilities) reduced \$44.9 million in 2021
• MultiClient library of \$415.6 million based on IFRS and \$450.7 million according to Segment Reporting

Operating cash flow MC Investments CAPEX Other investments Net cash flow before

0

40

80

120

160

200

USD million

240

280

320

327 155 127 35 9 81

Full year 2021 Cash Flow

financing

• Cash flow before financing activities of ~\$155 million
• Full year net cash flow* of ~\$33 million
• Interest payments on the export credit financing is generally covered from restricted cash through 2022

40

Interest paid on debt Lease repayments Other financing

1

activities

33

Net cash flow

Financing Status January 2022

• 2020 debt rescheduling extended near-term maturity and amortization profile by ~2 years
• Slower 2021 market recovery

USD million

• Risk of not generating sufficient cash flow to repay the 2022 maturities whilst also maintaining adequate liquidity reserve
• Risk that the Maximum Total Net Leverage Ratio covenant will not be met end Q1 2022
  • The reported ratio has increased primarily due to a change of activity mix with less capitalized MultiClient investment
  • Step down of covenant from 4.25x to 3.25x in Q1
• Started preparations for assessing alternative ways to address upcoming debt maturities, including engaging advisors
• Market and cash flow improvement should be supportive
  • Generating positive net cash flow after interest and lease payments
  • Cash flow before financing activities of \$155 million in 2021

Consolidated Key Financial Figures

	Q4	Q4	Full year	Full year
US (In millions of dollars share data) , except per	2021	2020	2021	2020
Profit and loss numbers Segment Reporting					▪ Significant change of
Segment Other and Income revenues	174 3	172 8	590 0	595 9
Segment EBITDA	96 1	129 6	320 2	397 7	activity mix towards
Segment EBIT Impairment and other charges , net ex.	3 0	20 4	(54 6)	12 2	more contract
Profit and loss numbers As Reported					impacts Segment
Other Revenues and Income	210 4	207 7	703 8	512 0	EBITDA and EBIT
EBIT	(26 5)	(21 6)	(66 2)	(188 0)
financial Net items	(18 5)	(31 3)	(97 6)	(118 4)
Income (loss) before income tax expense	(45 0)	(52 9)	(163 8)	(306 4)	▪ As Reported
Income tax expense	(8 5)	(7 4)	(15 6)	(15 1)	Revenues (IFRS)
Net income (loss) equity holders to	(53 5)	(60 3)	(179 4)	(321 5)
(\$ Basic earnings share share) per per	(\$0 13)	(\$0 16)	(\$0 45)	(\$0 85)	materially higher than
					Segment due to
Other key numbers					completion and
Net cash provided by operating activities	42 0	57 1	326 6	366 5	delivery of final data
Cash Investment in MultiClient library	23 3	33 0	127 2	222 3
Capital expenditures (whether paid not) or	9 7	11 4	33 4	36 1	on several projects
Total assets	1 792 8 ,	2 093 8 ,	1 792 8 ,	2 093 8 ,
Cash and cash equivalents	170 0	156 7	170 0	156 7
Net interest bearing debt	936 4	937 6	936 4	937 6
Net interest bearing debt including lease liabilities following IFRS 16 ,	1 051 3 ,	1 096 2 ,	1 051 3 ,	1 096 2 ,

Q4 2021 Operational Highlights

• Contract revenues of \$64.3 million
  • 76% of active time used for contract acquisition
• Total Segment MultiClient revenues of \$104.8 million
  • 32% increase in full year late sales vs. 2020
  • Q4 pre-funding revenues of \$23.9 million with a prefunding level of 103%

Total Segment MultiClient Revenues by Region

Europe Africa Middle East N. America S. America Asia Pacific

• Q4 2021 pre-funding revenues were primarily from Asia
• Europe and North America were the main contributors to late sales in Q4 2021

Seismic Vessel Allocation* and Utilization

• 58% active vessel time in Q4 2021
  • Based on six 3D vessels
• Recent and current vessel utilization impacted by:
  • Delay of contract award
  • Postponed acquisition program from 2H 21 to 2H 22
  • Early termination of Black Sea project due to escalating security situation
• Indicative Q1 2022 vessel allocation
  • Overweight to Contract
  • Expect to operate four vessels, increasing to six early Q2

Cost* Focus Delivers Results

• Cost substantially down from pre Covid levels
• Impact from gradually higher fuel prices
• Extra cost of ~\$12 million in 2021 directly related to Covid prevention measures for fleet operations
• Sequential cost decrease in Q4
  • Reduced activity
  • Lower project specific cost

Gross Cash Cost Development

• 2021 gross cash cost in the low-end of guided interval \$400-420 million
• 2022 gross cash cost increase vs. 2021 due to
  • Higher expected activity level assuming 6 active vessels
  • Fuel cost increase of ~\$20 million, to ~\$65 million
  • Costs relating to Covid prevention for fleet operations expected around same level as 2021 (\$10-15 million)
• Cost remains a key priority

Capital Expenditure and Depreciation Trends

70

▪ Full year 2021 CAPEX of \$33.4 million

• 2022 CAPEX plan of ~\$60 million*
  • ~\$25 million in streamer investments, including GeoStreamer build
• Gross depreciation in 2021 ended at \$142.4 million
• Gross depreciation expected to be ~\$125 million in 2022
  • ~ \$35 million to be capitalized as part of MultiClient investments

Summary

• Higher revenues compared to 2020 when adjusted for Covid-19 related government grants
• Significant increase in contract revenues
• Mixed development of MultiClient market
  • 32% late sales growth
  • 103% pre-funding, but on lower investments
• Higher activity levels drives cost and capital expenditures
  • Cost and CAPEX discipline remains a key priority
• Returned to positive net cash flow generation in 2021
• Slower market recovery than assumed in business plan for the 2020 debt rescheduling
  • Will have to address in coming quarters

Questions?

COPYRIGHT

The presentation, including all text, data, photographs, drawings and images (the "Content") belongs to PGS ASA, and/or its subsidiaries ("PGS") and may be protected by Norwegian, U.S., and international copyright, trademark, intellectual property and other laws. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior written permission by PGS and applicable acknowledgements. In the event of authorized reproduction, no trademark, copyright or other notice shall be altered or removed. © 2021 PGS ASA. All Rights Reserved. This presentation must be read in conjunction with the Q4 and preliminary full year 2021 Earnings Release and the disclosures therein.

Appendix

This presentation must be read in conjunction with the Q4 and Preliminary Full Year 2021 Earnings Release and the disclosures therein.

Appendix: IFRS 16 Lease Liability

Estimated amortization table based on existing agreements
Year	Lease liability (start of year)	Instalment	Interest
2022	~\$114M	~\$35M	~\$9M
2023	~\$79M	~\$33M	~\$6M
2024	~\$46M	~\$24M	~\$4M
2025	~\$23M	~\$13M	~\$3M
2026	~\$9M	~\$4M	~\$1M
2027	~\$5M	~\$4M	~\$1M
Thereafter	~\$1M	~\$1M	~\$0M

Composition of December 31, 2021 lease liability

• Leasing arrangements are reported as assets (and depreciated over the lease term) and debt (with payments being reported as interest cost and instalments)
• New leasing arrangements, or extensions of existing arrangements, will be reported as part of CAPEX

Appendix: 2022 MultiClient Financials

350 Marine MultiClient investment

• Pre-funding/MC investments Pre-funding (as a percent of MultiClient cash investments) targeted to be 80-120%
  • 2021 MultiClient cash investments of \$127.2 million with a pre-funding level of 105%
  • MultiClient cash investments in 2022 expected to be approximately \$115 million
  • Approximately 35% of 2022 active 3D fleet capacity currently planned for MultiClient
  • 2022 Segment MultiClient amortization expense expected to be approximately \$255 million

Appendix: Tax Position

• Tonnage Tax regimes
  • PGS' Ramform Titan-class vessels are operated within the Norwegian tonnage tax regime
• Cash tax mainly withholding taxes and local taxation in countries of operation where PGS has no tax losses to utilize – Will vary depending on area of operation
• Substantial deferred tax assets
  • 100% valuation allowance

Appendix: Foreign Exchange and Sensitivity

• A significant portion of operating payments (cash cost and CAPEX) is in non-USD currencies
  • A 10% change of USD vs. NOK has an annual net EBIT impact of USD 10-12 million
  • A 10% change of USD vs. GBP has an effect of USD 4-5 million
• Leasing commitments in NOK generally not hedged