PGS ASA

Earnings Release • Apr 30, 2015

Petroleum Geo-Services ASA : First Quarter 2015 Results

Petroleum Geo-Services ASA : First Quarter 2015 Results

Robust MultiClient Sales

Strong Financial Structure

Highlights Q1 2015

* Revenues of $251.1 million, compared to $292.5 million in Q1 2014

* EBITDA of $124.8 million, compared to $138.5 million in Q1 2014

* EBIT of $10.9 million, compared to $45.2 million in Q1 2014

* Strong cash flow from operations of $212.4 million, compared to $182.1

million in Q1 2014

* MultiClient Pre-funding revenues of $86.6 million with a corresponding pre-

funding level of 135%, compared to $74.2 million and 64% respectively in Q1

2014

* Late sales of $56.7 million, compared to $64.8 million in Q1 2014

* Strong balance sheet with $558.9 million liquidity reserve and no

significant debt maturities before 2018

* Cost savings target substantially increased to drive $220 million cost

reduction in 2015

* Full year guidance reiterated - market uncertainty remains

"Q1 MultiClient revenues ended at a solid $143.3 million. I am particularly

pleased to see that we have achieved good late sales from our well positioned

MultiClient data library. High pre-funding revenues achieved in the quarter were

mainly driven by three large MultiClient projects; one in Australia and two in

West Africa.

Weak Q1 vessel utilization impacted financial performance negatively in the

quarter, including our marine contract EBIT margin. During the quarter we have

intensified our efforts to improve bookings, which should lead to improved

utilization in the coming two quarters.

The sustained low oil price and cautious spending behavior among oil companies

will continue to impact the seismic market. We have proactively implemented

significant cost savings over the last four years, with a cost reduction of

approximately $220 million expected to be achieved in 2015. As a further step in

adapting to the weak market we have decided to cold stack Ramform Explorer and

Ramform Challenger after they complete this year's North Sea summer season."

Jon Erik Reinhardsen,

President and Chief Executive Officer

Outlook

The sharp oil price decline since mid-June 2014 has resulted in a more cautious

spending pattern among oil companies impacting bidding, pricing and utilization

negatively. PGS expects market uncertainty and low earnings visibility to

continue well into 2016.

Based on the current operational projections and with reference to disclosed

risk factors, PGS expects full year 2015 EBITDA to be in the range of $550-700

million.

MultiClient cash investments are expected to be in the range of $275-300

million, with a pre-funding level at or above 100%.

Approximately 45% of active 3D capacity now expected to be used for MultiClient

in 2015.

Capital expenditures are estimated to be approximately $250 million, of which

almost $150 million is for Ramform Tethys and Ramform Hyperion.

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

|   |   |   |

|   | 1(st) quarter | Full year |

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

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

| | 2015 | 2014 | 2014 |

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

| Revenues | 251.1 | 292.5 | 1 453.8 |

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

| EBITDA (as defined, see Note 14) | 124.8 | 138.5 | 702.6 |

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

| EBIT ex. Impairment charges | 10.9 | 45.2 | 178.0 |

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

| EBIT as reported | 10.9 | 45.2 | 104.2 |

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

| Income before income tax expense | (10.0) | 12.7 | 16.7 |

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

| Net income to equity holders | (19.5) | 4.6 | (50.9) |

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

| Basic earnings per share ($ per share) | (0.09) | 0.02 | (0.24) |

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

| Net cash provided by operating activities | 212.4 | 182.1 | 584.3 |

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

| Cash investment in MultiClient library | 64.0 | 116.2 | 344.2 |

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

| Capital expenditures (whether paid or not) | 41.5 | 131.9 | 371.3 |

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

| Total assets | 3 501.0 | 3 562.0 | 3 563.0 |

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

| Cash and cash equivalents | 148.9 | 208.6 | 54.7 |

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

| Net interest bearing debt | 955.9 | 760.4 | 1 048.0 |

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

The complete Q1 2015 earnings release and presentation can be downloaded from

www.newsweb.no and www.pgs.com.

FOR DETAILS, CONTACT:

Bård Stenberg, VP IR & Corporate Communications

Phone:  +47 67 51 43 16

Mobile:  +47 99 24 52 35

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1917015]