PGS ASA

Earnings Release • Apr 14, 2021

PGS ASA: Q1 2021 Update

PGS ASA: Q1 2021 Update

April 14, 2021: Oslo, Norway, based on a preliminary review, PGS expects to

report Revenues and Other Income As Reported* according to IFRS for Q1 2021 of

approximately $166 million, compared to $128.8 million in Q1 2020.

Segment* Revenues and Other Income for Q1 2021 are expected to be approximately

$132 million, compared to $168.3 million in Q1 2020.

Contract revenues ended at approximately $26 million ($85.4 million in Q1

2020). Segment MultiClient pre-funding revenues were approximately $46 million

($40.7 million in Q1 2020), and MultiClient late sales revenues approximately

$49 million ($33.5 million in Q1 2020). Revenues and Other Income in Q1 2021

include approximately $6 million of US government grants.

The difference between As Reported revenues and Segment revenues relates to

MultiClient pre-funding where the As Reported MultiClient pre-funding revenues

for Q1 are expected to be approximately $80 million ($1.2 million in Q1 2020).

"I am pleased to see an increase of our MultiClient sales compared to Q1 2020

and a significant sequential improvement in vessel utilization. We continue to

experience a general recovery of demand and remain with the view that 2021 will

show improvement compared to 2020," says President & CEO Rune Olav Pedersen.

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

each quarter.

Summary of Q1 2021 vessel allocation:

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

|  |   | |

| | | |

|Approximate allocation of PGS operated | Quarter | |

|3D towed streamer capacity | ended |   |

| | March 31, |Quarter ended December 31,|

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

|  |2021 |2020 | 2020 |

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

|Contract seismic | 34% | 47% | 8% |

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

|MultiClient seismic |55%  | 43% | 41% |

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

|Steaming | 7% | 9% | 13% |

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

|Yard | 0% | 1% | 3% |

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

|Stacked/Standby | 4% | 0% | 35% |

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

The Q1 2021 vessel statistics includes five vessels. All cold-stacked** vessels

are excluded from the statistics. The comparative period Q1 2020 is based on

eight vessels, while Q4 2020 is based on five vessels.

The Company provides this information based on a preliminary summary of Q1 2021

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 criteria. The estimates

provided in this release are therefore subject to change and the Q1 2021

financial statements finally approved and released by the Company may deviate

from the information herein.

PGS will release its Q1 2021 financial statements on Thursday April 22, 2021 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 ("POC") 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 2020 annual report under Segment disclosure page 68

and Alternative Performance Measures page 52. Adjustments between preliminary

IFRS and Segment revenue numbers for Q1 2021 are shown in the table below.)

(Revenue and Other Income, As Reported) ($166 million)

(Less Revenue for projects with IFRS performance obligations ($80 million)

met during Q1 for completed projects)

(Add Revenue recognized on a POC basis during Q1) ($46 million)

-------------------------------------------------------------------------------

(Segment Revenues and Other Income) ($132 million)

-------------------------------------------------------------------------------

(**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 2020. 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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