PGS ASA

Earnings Release • Jul 9, 2019

PGS ASA: Q2 2019 Update

PGS ASA: Q2 2019 Update

Q2 2019 Update

July 9, 2019: Oslo, Norway, based on a preliminary review, PGS (or "the

Company") expects to report total Segment* revenues of approximately $216

million in Q2 2019. MultiClient revenues were approximately $113 million, of

which approximately $67 million prefunding and $46 million late sales. Contract

revenues were approximately $94 million.

The order book as of June 30, 2019 is approximately $300 million**.

"Our second quarter revenues reflect high vessel utilization, good production

and strong improvement of pricing for contract work, partially offset by muted

MultiClient late sales, which we believe will improve in the second half of the

year. The contract market is in recovery and during Q2 we have further improved

revenue visibility with an order book increase of 26%, compared to previous

quarter," says President & CEO Rune Olav Pedersen.

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

each quarter.

Summary of vessel utilization:

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

|  |   | |

| | | |

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

|towed streamer capacity | ended |   |

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

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

|  |2019| 2018 | 2019 |

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

|Contract seismic | 45%| 12%| 29%|

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

|MultiClient seismic |43% | 62%| 38%|

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

|Steaming | 9%| 18%| 6%|

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

|Yard | 3%| 3%| 0%|

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

|Stacked/Standby | 0%| 5%| 27%|

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

The Q2 2019 vessel statistics includes eight vessels. All cold-stacked***

vessels are excluded from the statistics.

PGS will release its Q2 2019 results on Thursday July 18, 2019, 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 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 2018 annual report.)

(** The order book as of June 30, 2019, includes $27 million related to a

service and support agreement in Japan up to the next annual renewal.)

(***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.)

FOR DETAILS, CONTACT:

Bård Stenberg, SVP 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 2018. 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.

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