PGS ASA

Earnings Release • Jul 11, 2023

PGS ASA: Q2 2023 Update

PGS ASA: Q2 2023 Update

July 11, 2023, Oslo, Norway: Based on a preliminary review, PGS expects to

report Revenues and Other Income according to IFRS for Q2 2023 of approximately

$156 million, compared to $273.6 million in Q2 2022. The Company expects

Produced Revenues* for Q2 2023 of approximately $186 million, compared to $209.7

million in Q2 2022.

Contract revenues ended at approximately $71 million in Q2 2023, compared to

$62.8 million in Q2 2022. MultiClient late sales revenues were approximately $55

million in Q2 2023, compared to $108.2 million in Q2 2022, when the Company

benefited from significant transfer fees.

Estimated Produced MultiClient Pre-funding Revenues* in Q2 2023 were

approximately $54 million compared to $32.6 million in Q2 2022. MultiClient pre-

funding revenues based on IFRS, where revenues are recognized at the time of

delivery of finally processed data, were approximately $24 million in Q2 2023,

compared to $96.5 million in Q2 2022. IFRS revenues for Q2 were lower than

previously estimated due to changes to delivery time for completed data.

"Our Q2 revenues confirm an improving seismic market, considering the weather

related challenges we encountered in the Norwegian Sea and the Barents Sea in

the early part of the Europe season, and a delayed yard stay for Ramform

Sovereign in Asia Pacific.

I am pleased to see a meaningful pick up of MultiClient late sales which more

than doubled sequentially from Q1. We used an overweight of 3D vessel time for

MultiClient acquisition with a pre-funding level above 120% of capitalized cash

cost. For contract surveys, we continue to deliver improving rates and margins.

Our contract revenues in the quarter include approximately $5 million relating

to our first offshore wind site characterization survey in the Irish Sea. We are

encouraged by our progress in this area. With the latest announced contract

award our current Ultra High Resolution 3D system is booked on attractive work

to late Q1 2024," says President & CEO Rune Olav Pedersen, and continues:

"In July Ramform Victory commenced acquisition of a pre-funded MultiClient

project in the Norwegian Sea. The vessel was scheduled to commence on the large

4D contract job in Brazil around mid-year but is now expected to steam from

Norway late August. Contract scope is unchanged, and departure is postponed to

avoid risk of standby time in Brazil. The schedule for Ramform Titan was

impacted by a contract termination announced in June. The vessel is now

mobilizing for a MultiClient program offshore Egypt. Acquisition will start

later in July with duration of approximately 40 days."

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

each quarter. The table below summarizes Q2 2023 vessel allocation:

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

| | | |

| | | |

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

|towed streamer capacity | ended | |

| | June 30, |Quarter ended March 31,|

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

|  |2023| 2022 | 2023 |

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

|Contract seismic | 33%| 41%| 50%|

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

|MultiClient seismic | 43%| 24%| 23%|

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

|Steaming | 12%| 14%| 11%|

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

|Yard | 9%| 9%| 2%|

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

|Stacked/Standby | 3%| 12%| 14%|

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

The Q2 2023 vessel statistics includes six active 3D vessels. All cold-stacked**

vessels are excluded from the statistics. The comparative periods are also based

on six active 3D vessels.

The Company provides this information based on a preliminary summary of Q2 2023

numbers. 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 Q2 2023

financial statements finally approved and released by the Company may deviate

from the information herein.

PGS will publish its Q2 2023 earnings release on Thursday July 20, 2023, at

approximately 07:00am Central European Summer Time (CEST). Presentation of the

Q2 2023 results is scheduled to start at 09:30am CEST the same day.

(*Produced Revenues, when used by the Company, means revenues and other income

based on recognition of MultiClient pre-funding revenues on a Percentage-of

completion (POC) basis.)

Adjustments between IFRS revenues and Produced Revenues for each quarter in

2022 and 2023 are shown in the table below:

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

|  | 2022 |2023 |

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

|$ Million |Q1|Q2|Q3|Q4|Q1|Q2|

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

|MultiClient pre-funding revenues, IFRS  |15|96|19|9 |16|24|

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

|Less Revenue for projects with IFRS performance obligations | | | | | | |

|met during the quarter for completed projects  |15|96|19|9 |16|24|

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

|Add Revenue recognized on a POC basis during the quarter |19|33|37|43|46|54|

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

|Produced MultiClient Pre-funding Revenues |19|33|37|43|46|54|

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

(**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 an integrated marine

geophysics company, which operates world-wide. The Company supports the energy

industry, including oil and gas, offshore renewables, carbon capture and

storage. PGS' headquarter is in Oslo, Norway and the PGS share is listed on the

Oslo stock exchange (OSE: PGS). For more information about 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 2022. 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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