PGS ASA

Earnings Release • Jul 24, 2014

Petroleum Geo-Services ASA : Second Quarter and First Half 2014 Results

Petroleum Geo-Services ASA : Second Quarter and First Half 2014 Results

Clear Strategic Direction and Technological Edge

Near Term Challenges

Highlights Q2 2014

* Revenues of $337.0 million, compared to $381.7 million in Q2 2013

* EBITDA of $170.6 million, compared to $209.6 million in Q2 2013

* EBIT, excluding impairments, of $55.3 million, compared to $110.6 million in

Q2 2013

* Group EBIT margin, excluding impairments, of 16%, compared to 29% in Q2 2013

* Cash flow from operations of $40.2 million, compared to $271.3 million in Q2

2013

* EPS of $0.14, compared to $0.33 in Q2 2013

* Record MultiClient revenues from Europe

* Approved and paid dividend of NOK 2.30 per share

* PGS Towed EM streamer voted best new geoscience technology by  a jury of

industry experts nominated by Harts E&P magazine

* Launched Complete Wavefield Imaging, an imaging technology detecting shallow

hazards from GeoStreamer data

"Our second quarter was impacted by lower MultiClient revenues than expected,

due to lack of pre-funding from the Triton MultiClient survey in the Gulf of

Mexico. MultiClient revenues from other projects of the library remained

healthy. Mobilization delays on certain Marine Contract surveys impacted the

contract margin negatively. The projects have performed well after start-up.

We strongly believe in the technical and commercial success of the Triton survey

in the Gulf of Mexico, which has historically been one of the most attractive

areas for MultiClient investments. A fast track imaging product from key areas

of the Triton survey is now available and we expect to secure pre-funding for

the survey in H2.

Less predictable customer spending and current low bidding activity indicate

risk of a weaker market towards the end of the year. Accordingly, we have

lowered our full year EBITDA guidance to approximately $850 million.

Our strategy remains firm with focus on productivity leadership, technology

differentiation and shareholder return."

Jon Erik Reinhardsen,

President and Chief Executive Officer

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

| |   |   |   |

|  | 2(nd) Quarter | Six months |Full year|

|Key Financial Figures +-------+-------+-------+-------+---------+

|(In USD millions, except per share |   |   |   |   |   |

|data) | 2014 | 2013 | 2014 | 2013 | 2013 |

| |   |  | | |   |

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

|Revenues | 337.0| 381.7| 629.5| 776.5| 1,501.6|

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

|EBITDA (as defined, see note 1) | 170.6| 209.6| 309.2| 411.9| 828.9|

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

|EBIT ex. impairment charges | 55.3| 110.6| 100.5| 207.4| 397.1|

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

|EBIT as reported | 46.2| 110.6| 91.4| 207.4| 382.1|

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

|Income before income tax expense | 34.5| 97.3| 47.2| 185.2| 327.9|

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

|Net income to equity holders | 29.7| 71.5| 34.3| 134.0| 238.3|

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

|Basic earnings per share ($ per | 0.14| 0.33| 0.16| 0.62| 1.11|

|share) | | | | | |

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

|Diluted earnings per share ($ per | 0.14| 0.33| 0.16| 0.62| 1.10|

|share) | | | | | |

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

|Net cash provided by operating | 40.2| 271.3| 222.1| 374.0| 775.3|

|activities | | | | | |

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

|Cash investment in MultiClient | 99.6| 68.1| 215.8| 141.0| 373.0|

|library | | | | | |

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

|Capital expenditures (whether paid | 149.4| 199.9| 281.3| 271.3| 437.8|

|or not) | | | | | |

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

|Total assets (at period end) |3,665.7|3,444.6|3,665.7|3,444.6| 3,544.3|

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

|Cash and cash equivalents (at period| 42.9| 329.7| 42.9| 329.7| 263.8|

|end) | | | | | |

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

|Net interest bearing debt (at period|1,091.5| 617.2|1,091.5| 617.2| 666.7|

|end) | | | | | |

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

The complete Q2 earnings release and presentation can be downloaded from

www.newsweb.no and www.pgs.com.

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

Phone:   +47 67 51 43 75

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.

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.

PGS has a presence in 22 countries with regional centers in London, Houston and

Singapore. Our headquarters is in Oslo, Norway and the PGS share is listed on

the Oslo stock exchange (OSE:PGS).

For more information on Petroleum Geo-Services visit 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 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.

[HUG#1836391]