PGS ASA

Business and Financial Review • Apr 3, 2020

PGS ASA: Covid-19 and Business Update

PGS ASA: Covid-19 and Business Update

April 3, 2020: Oslo, Norway, The corona virus pandemic and the disruption in the

oil market present unprecedented challenges for the offshore services industry.

PGS is doing its utmost to ensure the health and safety of employees, their

families and other personnel, and to maintain uninterrupted operations. The

Company has implemented preventive measures and contingency plans, and is

managing all its activities in close dialogue with clients, authorities and

other relevant stakeholders.

So far, PGS have been able to continue vessel operations without interruptions.

Short-term, severe logistical challenges caused by travel restrictions and

quarantine provisions impacting crew-changes have been resolved by cancelling

all crew changes since March 18, with all crews continuing on a second full

rotation. The extended crew periods will start coming to an end in the latter

part of April, and the Company believes it will be able to find viable methods

for crew rotations.

The low oil price will have a material negative impact on demand for seismic

services and activity levels. The Company is implementing substantial cost and

capital expenditure measures to meet an expected significant revenue reduction.

Details relating to such measures will be provided in connection with the Q1

2020 earnings release on April 23, 2020. Meanwhile the following business update

is provided:

* To date PGS has not received contract cancellations. However, most processes

to conclude contract negotiations have since early March been substantially

delayed or resulted in postponement of projects;

* The Company has decided to cold-stack* two of the eight currently operated

3D vessels early in Q2, after completion of current projects. Further

capacity adjustments will be evaluated on an ongoing basis.

PGS completed a successful refinancing earlier this year and currently has a

substantial liquidity reserve. In order to maintain a strong liquidity position

while experiencing uncertain market conditions, the Company believes that it may

later in the year be prudent to seek extensions of the revolving credit facility

(RCF) reduction scheduled for September and/or other scheduled debt

amortization. The Company has drawn all of its RCF to hold its liquidity reserve

in cash.

PGS 2020 guidance and outlook statements published at the capital markets day on

January 30, 2020 is under review, and will be revised in connection with the

first quarter results on April 23, 2020.

((*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 2019. 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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