PGS ASA

Earnings Release • Oct 9, 2020

PGS ASA: Q3 2020 Update

PGS ASA: Q3 2020 Update

October 9, 2020: Oslo, Norway, based on a preliminary review, PGS expects to

report Segment* revenues for Q3 2020 of approximately $115 million. Contract

revenues ended at approximately $9 million. MultiClient pre-funding revenues

were approximately $52 million, from a capitalized MultiClient cash investment

of approximately $57 million. MultiClient late sales were approximately $26

million.

Q3 2020 revenues include approximately $23 million of government grants related

to the Covid-19 pandemic. The government grants are recorded as Other revenues.

"A majority of our active vessel capacity was allocated to MultiClient in Q3.

The market remains challenging, but we believe this quarter represents the

trough of this Covid-19 driven downturn. We expect increasing revenues from

vessel operations and MultiClient sales going forward.

During the quarter, we completed our reorganization to adapt to the challenging

market environment. We are now down to an annual run rate gross cash cost of

approximately $400 million, assuming five vessels in operation. The process to

complete documentation with lenders on the agreement to extend maturities is

progressing according to plan", says President & CEO Rune Olav Pedersen.

PGS routinely releases information about 3D vessel utilization after the end of

each quarter.

Summary of vessel utilization:

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

|  |   | |

| | | |

|Approximate allocation of PGS operated 3D | Quarter | |

|towed streamer capacity | ended | |

| | September | |

| | 30, |Quarter ended June 30,|

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

|  |2020 |2019 | 2020 |

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

|Contract seismic | 2%| 32%| 15%|

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

|MultiClient seismic |69%  | 56%| 50%|

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

|Steaming | 11%| 12%| 21%|

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

|Yard | 7%| 0%| 0%|

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

|Stacked/Standby | 11%| 0%| 14%|

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

The Q3 2020 vessel statistics includes five vessels. All cold-stacked** vessels

are excluded from the statistics. The comparative periods (Q3 2019 and Q2 2020)

are based on eight vessels.

The Company provides this information based on a preliminary summary of Q3 2020

revenues. The Company has not completed its financial reporting and related

consolidation, review and control procedures, including the final review of all

sales against the established revenue recognition/cut-off criteria. The

estimates provided in this release are therefore subject to change and the Q3

2020 financial statements finally approved and released by the Company may

deviate from the information herein.

PGS will release its Q3 2020 financial statements on Thursday October 22, 2020,

at approximately 8:00am Central European Summer Time (CEST). A corresponding

presentation is scheduled for 09:00am CEST the same day.

((*For the purpose of Segment reporting, MultiClient prefunding revenues are

recognized on a percentage of completion basis, and the related amortization of

MultiClient library is based upon the ratio of aggregate capitalized survey

costs to forecasted sales. This differs from IFRS reporting which recognizes

revenue from MultiClient prefunding agreements and related amortization at the

"point in time" when the customer receives access to, or delivery of, the

finished data. For further description of the principles applied, see details in

the 2019 annual report.))

((**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, VP 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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