PGS ASA

Earnings Release • Oct 21, 2021

PGS ASA: Third Quarter 2021 Results

PGS ASA: Third Quarter 2021 Results

Further Contract Market Improvement

Muted Late Sales

Takeaways Q3 2021

* Segment Revenues and Other Income of $131.7 million, compared to $116.1

million in Q3 2020

* Segment EBITDA of $55.6 million, compared to $88.4 million in Q3 2020

* Segment EBIT loss (excluding impairments and other charges) of $39.5

million, compared to profit of $0.5 million in Q3 2020

* Segment MultiClient pre-funding revenues of $35.3 million, with a

corresponding pre-funding level of 101%, compared to $50.4 million and 89%,

respectively, in Q3 2020

* Cash flow from operations of $114.5 million, compared to $65.9 million in Q3

2020

* As Reported Revenues and Other Income according to IFRS of $141.7 million

and an EBIT loss of $29.9 million, compared to $85.1 million and an EBIT

loss of $4.3 million, respectively, in Q3 2020

* Awarded 3D acquisition contract by ExxonMobil for work offshore Suriname

* Secured pre-funding for Sarawak MultiClient campaign

* First significant carbon capture and storage (CCS) specific MultiClient sale

"In the third quarter the majority of our vessel capacity was utilized on

proprietary contract work primarily in Northwest Europe and West Africa, and we

experienced a sequential rate improvement.

The Canada MultiClient projects for two Ramform Titan-class vessels comprised

most of our MultiClient acquisition activity in the quarter. This is the 11th

year in a row with solid MultiClient projects offshore East Coast Canada. Our

overall pre-funding level for the quarter ended at 101%.

MultiClient late sales suffered from continued low spending among energy

companies. With a strong oil price, increasing concern over energy supply and

unsustainably low investment levels, we expect sales from our MultiClient data

library to improve going forward, including a seasonal increase in Q4.

We have an order book of $241 million, which is an increase of 50% compared to

same quarter last year. For our vessel operations, we are experiencing a

seasonally lower activity level and some standby time following the end of the

North Atlantic acquisition season. However, there is a healthy volume of

contract sales leads and active tenders in the market. We expect the positive

acquisition market sentiment experienced over the last quarters to extend into

next year and we are already seeing strong demand for new acquisition during Q2

and Q3 2022.

We expect that Segment revenues for the full year 2021 will be higher than for

2020. With the improving cash flow in Q3, increased cash position and a

continued market recovery we expect to be in position to repay our 2022 debt

maturities by cash flow and refinancing our 2023 and 2024 maturities, in line

with the plan at the time of agreeing the revised maturity profile."

Rune Olav Pedersen,

President and Chief Executive Officer

Outlook

PGS expects the oil price level and the ongoing global recovery from the Covid-

19 pandemic to continue to drive a gradual demand improvement for seismic

services. Energy consumption is expected 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. The ongoing contract

market recovery is likely to also benefit from fewer seismic vessels operating

in the international market compared to pre Covid. Starting in 2022 we expect to

see an increasing demand for seismic acquisition services related to carbon

capture and storage projects.

PGS expects full year 2021 gross cash costs to be in the range of $400-420

million.

2021 MultiClient cash investments are expected to be approximately $125 million.

Approximately 35% of 2021 active 3D vessel time is expected to be allocated to

MultiClient acquisition.

Capital expenditures for 2021 is expected to be approximately $40 million.

The order book totaled $241 million on September 30, 2021 (including $51 million

relating to MultiClient). On June 30, 2021, and September 30, 2020, the order

book was $255 million and $160 million, respectively.

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

| | | | |

| | | | |

| | | | |

| | | | |

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

| | September 30, | September 30, |December 31,|

|Consolidated Key +-----------------+--------+--------+--------+------------+

|Financial Figures | | | | | |

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

|dollars, except per | | | | | |

|share data) | 2021 | 2020 | 2021 | 2020 | 2020 |

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

|Profit and loss | | | | | |

|numbers Segment | | | | | |

|Reporting |  |  |  |  |  |

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

|Segment Revenues and| | | | | |

|Other Income | 131.7| 116.1| 415.7| 423.1| 595.9|

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

|Segment EBITDA ex. | | | | | |

|other charges, net | 55.6|    88.4| 224.2| 268.1| 397.7|

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

|Segment EBIT ex. | | | | | |

|impairment and other| | | | | |

|charges, net | (39.5)|     0.5| (57.6)| (8.3)| 12.2|

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

|  |  |  |  |  |  |

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

|Profit and loss | | | | | |

|numbers As Reported |  |  |  |  |  |

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

|Revenues and Other | | | | | |

|Income | 141.7| 85.1| 493.3| 304.3| 512.0|

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

|EBIT | (29.9)| (4.3)| (39.6)| (166.6)| (188.0)|

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

|Net financial items | (29.5)| (24.3)| (79.8)| (87.1)| (118.4)|

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

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

|income tax expense | (59.4)| (28.6)| (118.8)| (253.7)| (306.4)|

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

|Income tax expense | (1.3)| (4.0)| (7.1)| (7.6)| (15.1)|

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

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

|equity holders | (60.7)| (32.6)| (125.9)| (261.3)| (321.5)|

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

|Basic earnings per | | | | | |

|share ($ per share) | (0.15)| (0.08)| (0.32)| (0.69)| (0.85)|

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

|  |  |  |  |  |  |

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

|Other key numbers As| | | | | |

|Reported by IFRS: |  |  |  |  |  |

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

|Net cash provided by| | | | | |

|operating activities| 114.5| 65.9| 284.5| 309.3| 366.5|

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

|Cash Investment in | | | | | |

|MultiClient library | 35.0| 56.8| 103.9| 189.2| 222.3|

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

|Capital expenditures| | | | | |

|(whether paid or |                 | | | | |

|not) | 6.2| 8.4| 23.7| 24.7| 36.1|

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

|Total assets | 1,843.0| 2,137.8| 1,843.0| 2,137.8| 2,093.8|

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

|Cash and cash | | | | | |

|equivalents | 193.0| 193.7| 193.0| 193.7| 156.7|

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

|Net interest-bearing| | | | | |

|debt | 917.9| 919.7| 917.9| 919.7| 937.6|

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

|Net interest-bearing| | | |        | |

|debt, including | | | |1,078.8 | |

|lease liabilities | | |        | | |

|following IFRS 16 | 1,046.1| 1,078.8| 1,046.1| | 1,096.2|

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

A complete version of the Q3 2021 earnings release and presentation can be

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

The Q3 2021 webcast can be accessed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20211021_10/

Alternatively use the YouTube link to access the Q3 2021 webcast:

https://youtu.be/oMAIYXQOzss

FOR DETAILS, CONTACT:

Bård Stenberg, SVP 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, carbon capture

and 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 2020 and the Q1 2021 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.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act