PGS ASA

Earnings Release • Jun 11, 2014

Navigating the Nordics Seminar CFO & EVP Gottfred Langseth Stockholm June 11, 2014

• 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 other financial statements and the disclosures therein

Marine Contract

Marine market leadership 45% of 2013 Revenues

Marine Contract acquires seismic data exclusively for oil and gas exploration and production companies

MultiClient

Diverse MultiClient library 45% of 2013 Revenues

MultiClient initiates and manages seismic surveys which PGS acquires, processes, markets and sells to multiple customers on a non-exclusive basis

Operations

Productivity leadership

Operations supports Marine Contract and MultiClient with vessel resources and manages fleet renewal strategies

Imaging & Engineering

Technology differentiation

8% of 2013 Revenues

Imaging and Engineering processes seismic data acquired by PGS for its MultiClient library and for external clients on contract and manages research and development activities

Client focus | Global presence | Innovation leadership

Financial Summary

EBIT** Cash Flow from Operations

*EBITDA, when used by the Company, means EBIT less other operating (income) expense, impairments of long-term assets and depreciation and amortization. **Excluding impairments of USD 15 million in Q4 2013, USD 0.1 million in Q4 2012 and reversal of impairment of USD 0.9 million in Q2 2012.

2008 – 2015 First Phase of the Industrial Approach: Performance Through the Cycle - Getting it Right

• 3D fleet renewal and growth
• Average vessel age reduced from 16.2 to 9.2 years
• Average streamers per vessel increased from 8.5 to 12.9
• Total number of streamers increased from 94 to 155
• Streamer based market share increased from 22% to 24%
• Rollout of GeoStreamer Technology (last vessel to be upgraded in 2016)
• MultiClient focus and growth (in size and profitability)
• Emergence of new GeoStreamer based Imaging technologies
• Technology pipeline with further profit potential
• Taking the industry lead in HSE and Quality
• Substantial strengthening of financial robustness and initiation of dividend payments

Increased productivity and technological differentiation

2016 and Beyond: Becoming Fully Industrialized

• Financial focus on profit, free cash flow and ROCE - not vessel market share growth
• Leveraging free cash flow for dividend growth a priority
• Leveraging GeoStreamer equipped fleet and increased productivity differentiation
• Continued MultiClient revenue growth and focus on return on invested capital
• GeoStreamer Imaging as new differentiator
• Continued roll-out of new technologies
• HSE, Cost and Quality leadership

Increasing return on capital and dividend capacity

Ramform Titan-class Delivers Attractive Returns

• PGS has historically strong returns on capital employed over the cycle
• Targeting average returns of 5% in excess of weighted average cost of capital (WACC) over the cycle
• WACC estimated at approximately 9-10% (after tax)
• The Ramform Titan meeting expectations:
• Performance and efficiency
• Ability to fully exploit GeoStreamer technology
• Safety
• Crew comfort
• Assuming current contract performance through the vessel's life:
• Payback time of less than 5* years
• IRR better than initial plan and above 20%*

High quality assets generating high returns

Significant Free Cash Flow Potential

• Cash flow from operations covers MultiClient investments, maintenance CAPEX, interest & financing/debt service, dividends and a significant portion of new build CAPEX
• Excluding new build CAPEX the Company generates healthy free cash flow in the current market environment
• Completion of new build program and increased streamer capacity of approximately 50% by end 2015 makes the foundation for significant increase in free cash flow going forward

New Cost and Quality Initiatives Implemented

• Significant cost reductions achieved for 2012 and 2013
• Further cost reductions initiated with target USD 30 million run rate by end 2014
• Quality improvements targeting USD 50 million EBIT improvement as run rate in 2016

Strong Order Book – Focus on Price Optimization

Satisfactory booking progress

Bidding Activity

Source: PGS internal estimate as of end May 2014. Value of active tenders and sales leads are the sum of active tenders and sales leads with a probability weight and represents Marine 3D contract seismic only.

Global Supply and Demand Trends

Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15

• From 2006 to end 2012 demand for seismic grew by approximately 120% measured in sq.km.
• Annual average growth rate of 12%
• Growth in sq.km. flattened out from 2012 to 2013 and is expected to grow low single digit in 2014
• In line with E&P spending
• Modest streamer capacity growth expected

Year	Yearly streamer growth
2013	3%
2014	-2%
2015	3%
2016	4%

Source of both graphs: PGS internal estimates. Capacity increases are calculated based on average number of streamers in one year compared to average number of streamers the previous year.

Vessel Decommissioning Limits Capacity Growth

Expected vessel decommissioning reduces streamer capacity by 13%*

* Expectations as of end Q3 2013 compared to expectations as of end Q1 2014.

Source: The cash cost curve is based on PGS' internal estimates and typical number of streamer towed, and excludes GeoStreamer productivity effect. The graph shows all seismic vessels operating in the market and announced new-builds. The Ramform Titan-class vessels are incorporated with 15 streamers, S-class with 14 streamers and the V-class with 12 streamers. -13-

Good MultiClient Sales Performance from All Vintages

• Strong sales progress for all vintages
• Moderate net book values (NBV) for surveys completed 2009-2013
• Amortization is primarily based on the ratio of cost to forecasted sales

Cap cost Accumulated revenue NBV

The GeoStreamer Technology Platform: Much More than Broadband

		Enhanced illumination and clearer earth model	A clearer image for reduced sub surface risk
GeoStreamer® with GeoSource™ The full deghosting solution	Reliable Quantitative Interpretation (QI) and rock properties	GeoStreamer® enabled separated wavefield imaging (SWIM)	Full Waveform Inversion (FWI) combined with SWIM
Leading Broadband Technology		Moving Beyond Broadband

GeoStreamer – The New Business and Technology Platform

• Enhanced resolution, better depth imaging and improved operational efficiency
• Enables the best sub-surface image for reservoir understanding and well placement

PGS' Strategic Ambition

• To Care

• For our employees
• For the environment and society at large
• For our customers' success

• To Deliver Productivity Leadership

• Ramform platform + GeoStreamer
• Reducing project turnaround time

• To Develop Superior Data Quality

• GeoStreamer business platform
• Imaging Innovations
• Subsurface knowledge

• To Innovate

• First dual sensor streamer solution
• First with 20+ towed streamer capability
• Unique reservoir focused solutions

• To Perform Over the Cycle

• Profitable with robust balance sheet
• Absolute focus on being best in our market segment

A Clearer Image

Near Term Outlook

• Sustained high oil price
• Deep water attractive for E&Ps
• Low single digit demand growth for 2014
• Average 2014 pricing expected slightly below average 2013 level
• Stable current pricing environment
• Satisfactory booking progress

In Conclusion: Well Positioned for the Future

• Differentiating technology
• Cost effective operations
• Improved productivity
• Solid financial position
• Significant free cash flow potential
• Returning cash to shareholders

Competitively Positioned – Performance Through the Cycle

Thank you – Questions?

Appendix: Continuously Ahead of Competition

• PGS builds vessels to optimize cost and efficiency over the vessels' useful life
• Growing capacity over the cycle rather than trying to time the market
• Larger vessels enable safer and more efficient high quality seismic

8 - 12 streamers 12 - 18 streamers

• Fleet optimization by decommission of two older vessels – one in 2014 and one in 2015

12 – 22 streamers

14 - 24 streamers

The PGS Fleet: Delivers Productivity Leadership

• Ramform fleet is improving further with 4 new Titanclass vessels
• GeoStreamer contributes to productivity leadership
• Industrialized approach to fleet renewal

Ramform productivity is a key differentiator

Strong Balance Sheet Position - Key Numbers

	March 31	March 31	Full year
USD million	2014	2013	2013
Total assets	3 562.0	3 301.0	3 544.3
MultiClient Library	666.3	410.5	576.9
Shareholders' equity	2 069.3	1 964.9	2 065.6
Cash and cash equiv.	208.6	311.6	263.8
Restricted cash	97.8	98.1	89.4
Liquidity reserve	708.6	661.7	763.8
Gross interest bearing debt	1 089.8	921.1	1 040.8
Net interest bearing debt	760.4	504.5	666.7

• Debt profile further strengthened, with average remaining time to maturity of debt and committed facilities increased to 5.7 years
• Term Loan B balance reduced to USD 400 million and maturity extended to 2021 (from USD 470 million maturing in 2015)
• Established USD 305 million Export Credit Financing commitment for the two last Ramform Titan-class vessels
• Net debt well below threshold of 1x EBITDA in a strong market and 2x EBITDA in a weak market

• Shareholders' equity at 58% of total assets

• The accompanying unaudited financial information has been prepared under IFRS. This information should be read in conjunction with the unaudited first quarter 2014 results released on May 9, 2014.

Main Yard Stays Next 6 Months

Vessel	When	Expected Duration	Type of Yard Stay
Ramform Vanguard	April 2014	Approximately 23 days	Renewal class
Ramform Challenger	April 2014	Approximately 10 days	Intermediate class
Ramform Sterling	June/July 2014	Approximately 25 days	Renewal class

Attractive Debt Structure

Long term Credit Lines and Interest Bearing Debt	Nominal Amount as of end March, 2014	Total Credit Line	Financial Covenants
USD 400.0 million Term Loan ("TLB"), Libor (minimum 0.75%) + 250 basis points, due 2021	USD 400.0 million		None, but incurrence test: total leverage ratio < 3.00:1
Revolving credit facility ("RCF"), due 2018 70 bps commitment fee on undrawn amount Libor + margin of 200-235 bps on drawn amount	Undrawn	USD 500.0 million	Maintenance covenant: total leverage ratio < 2.75:1
Japanese ECF, 12 year with semi-annual installments. 50% fixed/ 50% floating interest rate	USD 239.5 million	USD 544.1 million	None, but incurrence test for loan 3&4: Total leverage ratio < 3.00:1 and Interest coverage ratio > 2.0:1
2018 Senior Notes, coupon of 7.375% and callable from 2015	USD 450.0 million		None, but incurrence test: Interest coverage ratio > 2.0:1