PGS ASA

Earnings Release • Jul 9, 2021

PGS ASA: Q2 2021 Update

PGS ASA: Q2 2021 Update

July 9, 2021: Oslo, Norway, based on a preliminary review, PGS expects to report

Revenues and Other Income As Reported* according to IFRS for Q2 2021 of

approximately $186 million, compared to $90.3 million in Q2 2020.

Segment* Revenues and Other Income for Q2 2021 are expected to be approximately

$152 million, compared to $138.7 million in Q2 2020.

Contract revenues ended at approximately $51 million ($31.3 million in Q2

2020). Segment MultiClient pre-funding revenues were approximately $29 million

($66.2 million in Q2 2020), and MultiClient late sales revenues approximately

$66 million ($35.5 million in Q2 2020).

The difference between As Reported revenues and Segment revenues relates to

MultiClient pre-funding where the As Reported MultiClient pre-funding revenues

for Q2 are expected to be approximately $63 million ($17.8 million in Q2 2020).

"I am pleased to see that we continue to deliver solid sales from our

geographically diversified MultiClient data library. Sales from Europe were

particularly strong in the quarter. We also secured healthy pre-funding for our

ongoing MultiClient surveys. Vessel operations were dominated by production (4D)

seismic, which were negatively impacted by challenging weather conditions during

mobilization for projects offshore Norway. We still see a growing demand for new

seismic acquisition, and we are increasingly confident in achieving higher

Segment revenues in 2021, compared to 2020," says President & CEO Rune Olav

Pedersen.

PGS routinely releases information about 3D vessel utilization after the end of

each quarter.

Summary of Q2 2021 vessel allocation:

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

| | | |

| | | |

|Approximate allocation of PGS operated 3D | Quarter | |

|towed streamer capacity | ended | |

| | June 30, |Quarter ended March 31,|

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

|  |2021| 2020 | 2021 |

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

|Contract seismic | 47%| 15%| 34%|

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

|MultiClient seismic | 21%| 50%| 55%|

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

|Steaming | 21%| 21%| 7%|

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

|Yard | 8%| 0%| 0%|

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

|Stacked/Standby | 3%| 14%| 4%|

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

The Q2 2021 vessel statistics includes six active 3D vessels. However, Ramform

Sovereign was used as a source vessel for approximately half the quarter with

corresponding lower revenue and cost, compared to when used as a 3D acquisition

vessel. All cold-stacked** vessels are excluded from the statistics, including

Sanco Swift which is not currently rigged for 3D but has been used as source

vessel for parts of the quarter. The comparative period Q2 2020 is based on

eight vessels***, while Q1 2021 is based on five vessels.

The Company provides this information based on a preliminary summary of Q2 2021

revenues. The Company has not completed its financial reporting and related

consolidation, review and control procedures, including the final review of all

sales against the established revenue recognition criteria. The estimates

provided in this release are therefore subject to change and the Q2 2021

financial statements finally approved and released by the Company may deviate

from the information herein.

PGS will release its Q2 2021 financial statements on Thursday July 22, 2021 at

approximately 8:00am Central European Summer Time (CEST). A corresponding

presentation is scheduled for 09:00am CEST the same day.

*For the purpose of Segment reporting, MultiClient prefunding revenues are

recognized on a percentage of completion ("POC") basis, and the related

amortization of MultiClient library is based upon the ratio of aggregate

capitalized survey costs to forecasted sales. This differs from IFRS reporting

which recognizes revenue from MultiClient prefunding agreements and related

amortization at the "point in time" when the customer receives access to, or

delivery of, the finished data. For further description of the principles

applied, see details in the 2020 annual report under Segment disclosure page 68

and Alternative Performance Measures page 52. Adjustments between preliminary

IFRS and Segment revenue numbers for Q2 2021 are shown in the table below.

Revenue and Other Income, As Reported $186 million

Less Revenue for projects with IFRS performance obligations met $63 million

during Q2 for completed projects

Add Revenue recognized on a POC basis during Q2 $29 million

-------------------------------------------------------------------------------

Segment Revenues and Other Income $152 million

-------------------------------------------------------------------------------

**The term "cold-stacked" is used when a vessel is taken out of operation for an

extended period of time. Costs are reduced to a minimum, with the vessel

preserved for a long idle time, all or most in-sea seismic equipment removed

from the vessel, and typically the Company does not have available crew to

operate the vessel.

***PGS Apollo and Sanco Swift were cold-stacked during Q2 2020.

FOR DETAILS, CONTACT:

Bård Stenberg, VP IR & Corporate Communication

Mobile: +47 99 24 52 35

***

PGS ASA and its subsidiaries ("PGS" or "the Company") is a focused marine

geophysical company that provides a broad range of seismic and reservoir

services, including acquisition, imaging, interpretation, and field evaluation.

The Company MultiClient data library is among the largest in the seismic

industry, with modern 3D coverage in all significant offshore hydrocarbon

provinces of the world. The Company operates on a worldwide basis with

headquarters 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. 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.