PGS ASA

Earnings Release • Jul 14, 2014

Petroleum Geo-Services ASA : Update of Q2 Performance and Reduction of Full Year 2014 Guidance

Petroleum Geo-Services ASA : Update of Q2 Performance and Reduction of Full Year 2014 Guidance

July 14, 2014: Oslo, Norway, Petroleum Geo-Services ASA ("PGS" or "the Company")

will present second quarter results on July 24, 2014. The Company expects to

report weaker Q2 results than current market expectations.

Customers' intentions with regard to seismic purchases, particularly

MultiClient, have become less predictable recently. Accordingly, and considering

the Q2 results, PGS lowers its full year EBITDA guidance to circa $850 million.

It should be noted that because of this reduced predictability, the uncertainty

range around the EBITDA guidance is wider than normal.

The weak Q2 results are mainly driven by lack of pre-funding for the Triton

MultiClient survey in the Gulf of Mexico and to some extent by mobilization

delays on some Marine Contract surveys, relating to permitting, weather and

technical problems.

The Company expects to report consolidated Q2 revenues of approximately $335

million; EBITDA of approximately $170 million and EBIT before impairments of

approximately $55 million.  In addition, an impairment charge of approximately

$10 million is expected related to vessel and equipment retirement.

With the exception of the delay in securing pre-funding for the Triton survey,

MultiClient pre-funding is progressing well. Excluding investment in the Triton

survey, the Q2 pre-funding for the remaining MultiClient portfolio is

approximately 150% of capitalized MultiClient cash investment.

With respect to Triton, a fast track product from the survey is now available

and the Company expects sales to be closed during 2H.

The Company provides this information based on preliminary consolidated Q2 2014

numbers. The Company has not completed all review and control procedures

relating to its quarterly reporting, and significant evaluations have not yet

been concluded, including tax provisions. The estimates provided in this release

are therefore subject to change and the Q2 2014 financial statements finally

approved and released by the Company may deviate materially from the information

herein.

A more complete review of financial performance and market perspectives will be

provided at the issuance of the Company's Q2 2014 Earnings Release on July

24, 2014.

FOR DETAILS, CONTACT:

Bård Stenberg, Investor Relations Manager

Phone:   +47 67 51 43 16

Mobile:  +47 99 24 52 35

Tore Langballe, SVP Corporate Communications

Mobile:  +47 90 77 78 41

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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Petroleum Geo-Services ("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's

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.

For more information on Petroleum Geo-Services visit www.pgs.com.

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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 2013. 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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