PGS ASA — Investor Presentation 2022

Jul 21, 2022

Second Quarter 2022 Presentation

Oslo, July 21, 2022

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• This presentation contains forward looking information
• Forward looking information is based on management assumptions and analyses
• Actual experience may differ, and those differences may be material
• Forward looking information is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future
• This presentation must be read in conjunction with the Q2 2022 earnings release and the disclosures therein
• The full disclaimer is included at the end of this presentation

Agenda Q2 2022 Earnings Presentation

Rune Olav Pedersen, President & CEO

• Q2 takeaways
• Financial summary
• Order book

Gottfred Langseth, EVP & CFO

– Financial review

Rune Olav Pedersen, President & CEO

• Operational update and market comments
• Guidance
• Summary and Q&A

Q2 2022 Takeaways

Second highest quarterly revenues since Q4 2014 and positive net income

• Strong MultiClient late sales

• High volume of completed MultiClient projects
• All 6 active 3D vessels back in operation

• Successful private placement and obtained commitment for Super Senior debt facility
• Completed subsequent offering in July
• Well positioned to refinance ahead of Q3 2023

Awarded the fourth carbon storage acquisition contract Secured access to ultra-high resolution P-cable

Increasing order book Market activity and pricing continuing on a positive trend

Financial Summary

Contract Late sales Other Pre-funding

EBIT** Cash Flow from Operations

*EBITDA, when used by the Company, means EBIT excluding other charges, impairment and loss on sale of non-current assets and depreciation and amortization, as defined in Appendix of the Q2 2022 earnings release published on July 21, 2022 **Excluding impairments and Other charges.

Improving Marine Seismic Market

Supportive macro environment

• High oil and gas prices
• Increasing focus on energy security
• Investment pressure on energy companies

Increasing E&P activity

• Renewed interest from several companies in frontier exploration data sets
• Higher E&P investments

Seismic

• Increasing industry MultiClient library sales
• More client interest in pre-funding new MultiClient surveys
• Contract activity and pricing continue on a positive trend
• Vessel schedule for winter season firming up

Order Book Development

• Order book of \$359 million on June 30, 2022
  • \$82.9 million relating to MultiClient
• Fully booked for summer season*
  • Q3 22: 18 vessel months
  • Q4 22: 11 vessel months
  • Q1 23: 6 vessel months
• One vessel booked through the 2023 North Sea season

Q2 2022 Financials

Gottfred Langseth, EVP & CFO

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This presentation must be read in conjunction with the Q2 2022 Earnings Release and the disclosures therein.

Consolidated Key Financial Figures

(In of US data) millions dollars share , except per	Q2 2022	Q2 2021	YTD 2022	YTD 2021	Full year 2021	▪ Y-o-Y revenue increase due to an improving
Profit and loss numbers Revenues and Other Income EBITDA EBIT Impairment and other charges , net ex. Net financial items	273 6 193 3 8 57 (32 7)	185 9 118 5 (7 6) (16 2)	409 9 245 2 37 3 (53 4)	351 7 236 2 (12 8) (49 8)	703 8 434 0 (32 0) (97 6)	seismic market, strong late sales and a high volume of MultiClient projects finalized and
Income (loss) before income tax expense Income tax expense (loss) Net income equity holders to (\$ Basic earnings share share) per per Other numbers	28 0 (9 3) 18 7 \$0 04	(23 5) (2 5) (26 0) (\$0 07)	(16 2) (14 3) (30 5) (\$0 07)	(59 5) (5 7) (65 2) (\$0 17)	(163 8) (15 6) (179 4) (\$0 45)	delivered to clients in the quarter ▪ Q2 net financial items includes \$9.0 million
key Net cash provided by operating activities Cash Investment in MultiClient library Capital expenditures (whether paid not) or Total assets Cash and cash equivalents Net interest bearing debt Net interest bearing debt including lease liabilities following IFRS 16	43 7 26 2 16 2 1 822 6 , 219 8 887 2 985 8	81 4 25 7 11 3 1 946 2 , 155 4 954 5 1 093 6	107 0 47 7 35 1 1 822 6 , 219 8 887 2 985 8	170 0 69 0 17 5 1 946 2 , 155 4 954 5 1 093 6	326 6 127 2 33 4 1 792 8 , 170 0 936 4 1 051 3	expense relating to fair value adjustment of the conversion right in the convertible bond due to increased share price

Q2 2022 Operational Highlights

• Contract revenues of \$62.8 million
  • 63% of active time used for contract acquisition
  • Contract revenues impacted by:
    • Steaming and standby early in Q2
    • Mobilization for two surveys where production and revenue recognition will primarily be in Q3 and Q4

• Total MultiClient revenues of \$204.7 million
  • High transfer fees contributed to strong late sales
  • High pre-funding driven by high volume of surveys completed and delivered to clients
  • Cash investment in MultiClient library of \$26.2 million

Seismic Vessel Allocation* and Utilization

• 65% active vessel time in Q2 2022
• Impacted by relocation and standby in the first part of Q2
  • North Atlantic season start (4 vessels)
  • New surveys in Brazil and Cyprus
• Vessel utilization expected to improve significantly in Q3

Cost* Development

• Q2 2022 cost increase primarily due to higher activity level, project specific cost and fuel prices
• Fuel price adjustment clauses in most agreements for contract work
• Full year gross cash cost guidance increased to ~\$500 million
  • Increased project activity
  • Will operate Sanco Swift and PGS Apollo as source vessels longer than initially planned

▪ Cost remains a key priority

Balance Sheet Key Numbers

	June 30	June 30	December 31
In millions of US dollars	2022	2021	2021
Total assets	1 822 6 ,	1 946 2 ,	1 792 8 ,
MultiClient Library	321 6	512 2	415 6
Shareholders' equity	332 4	358 0	245 1
Cash and cash equivalents (unrestricted)	219 8	155 4	170 0
Restricted cash	72 1	72 5	73 7
Gross interest bearing debt	1 179 1 ,	1 182 4 ,	1 180 1 ,
Gross following IFRS interest bearing debt including lease liabilities 16 ,	1 277 7 ,	1 321 5 ,	1 295 0 ,
Net interest bearing debt	887 2	954 5	936 4
IFRS Net interest bearing debt including lease liabilities following 16 ,	985 8	1 093 6 ,	1 051 3 ,

• Cash and cash equivalents (unrestricted) of \$219.8 million
• Liquidity sweep for cash and cash equivalents above \$200 million
  • Prepay the September TLB amortization and deferred amounts of the ECF loans
  • \$19.8 million to be paid early Q3 2022

▪ PGS will convert the remaining outstanding amount of the Convertible Bond to shares in Q3

Consolidated Statements of Cash Flow

	Q2	Q2	YTD	YTD	Full year
US In millions of dollars	2022	2021	2022	2021	2021
Cash provided by operating activities	43.7	81.4	107.0	170.0	326.6
Investment in MultiClient library	(26 2)	(25 7)	(47 7)	(69 0)	(127 3)
Capital expenditures	(11 0)	(9 8)	(26 8)	(18 1)	(35 4)
Other investing activities	(2 1)	(3 0)	(4 5)	(5 2)	(9 2)
Net cash flow before financing activities	4.4	42.9	28.0	77.7	154.7
Proceeds of deferred loan from issuance of debt/net cash for debt amendment* , net costs, non-current payment	-	(0 8)	-	(19 2)	(19 5)
Interest paid on interest bearing debt	(21 9)	(20 1)	(41 8)	(40 0)	(80 8)
Proceeds from share issue	83 1	-	83 1	-	-
Share buy-back	(0 4)	-	(0 4)	-	-
Payment of lease liabilities and related interest (recognized under IFRS 16)	(10 7)	(12 3)	(21 9)	(24 2)	(49 2)
Decrease (increase) in restricted cash related debt service non-current to	1 4	1 8	2 8	4 4	8 1
Net increase (decr ) in cash and cash equiv	55.9	11.5	49.8	(1 .3)	13.3
Cash and cash equiv beginning of period . at	163 9	143 9	170 0	156 7	156 7
Cash and cash equiv end of period . at	219.8	155.4	219.8	155.4	170.0

• Moderate net cash provided by operating activities as planned and expected
  • Cash collection for Q2 MultiClient late sales primarily early Q3
  • Excessive Q2 liquidity sweep avoided

▪ Expect strong Q3 cash flow

Q2 Revenues will Drive Q3 Cash Flow

	Quarter ended June 30,		Year to date June 30,
(In millions of US dollars)	2022	2021	2022	2021
Income (loss) before income tax expense	28.0	(23.5)	(16.2)	(59.5)
Depreciation, amortization, impairment	135.1	126.1	207.5	248.9
Share of results in as sociated companies	(1.0)	0.7	(0.8)	1.1
Interest expense	27.3	25.9	52.1	47.1
Loss (gain) on sale and retirement of assets	(0.5)	0.3	(0.5)	0.3
Income taxes paid	(11.5)	(1.8)	(13.8)	(4.8)
Other items	3.2	(4.1)	2.1	3.0
(Increase) decrease in accounts receivables, accrued revenues & other receivables	(89.1)	(43.6)	(71.0)	(23.4)
Increase (decrease) in deferred revenues	(52.9)	(11.8)	(45.6)	(57.5)
Increase (decrease) in accounts payable	21.0	19.3	5.8	18.2
Change in other current items related to operating activities	(15.0)	(3.7)	(2.2)	(1.6)
Change in other long-term items related to operating activities	(0.9)	(2.4)	(11.0)	(1.8)
Net cash provided by operating activities	43.7	81.4	107.0	170.0

• High receivables balance end Q2, driven by
  • Revenue increase
  • Revenue mix with high MultiClient late sales
  • Collection of most of Q2 MultiClient late sales in Q3
• Strong collection and cash flow expected in Q3
  • No extended payment terms in Q2 revenues
• Expect a strong liquidity position post the September amortization of the TLB
• Receivables balance end Q3 will be driven by revenue level and revenue mix in the quarter

Improving Financial Position

• Successfully completed a private placement of ~\$85 million of new equity
• Obtained commitments for \$50 million of new senior secured debt
  • Will draw in conjunction with the \$135 million TLB amortization in September
• Completed subsequent offering of ~\$14* million in July
• Proceeds used for:
  • Debt amortization in Q3 2022
  • Increase buffer to the minimum liquidity covenant
  • Strengthening balance sheet
• Will convert the remaining outstanding amount of the Convertible Bond (NOK 75.7 million) to shares in Q3 2022
  • Issuer conversion option if share trades above NOK 6 for more than 30 consecutive days
• Well positioned to refinance ahead of Q3 2023

*The subsequent offering was fully subscribed to, and gross proceeds amounts to approximately NOK 141 million, corresponding to approximately \$14 million with the exchange rate at the time of closing.

Operational Update and Markets Comments

Rune Olav Pedersen, President & CEO

17 This presentation must be read in conjunction with the Q2 2022 Earnings Release and the disclosures therein.

Fleet Activity July 2022

Improving Marine Seismic Market with Seasonal Swings

• Sales leads building momentum for winter-season with Mediterranean and West Africa as the most active regions
  • Sales leads volume likely to continue to positively impact tenders
• Active Tenders curve increases with multiple recent tenders
  • Decline early in Q2 primarily due to awards and removal of large Brazil 4D bid
• Large number of informal requests for pricing on programs for 2023
  • Often results in later contract tenders, hybrid MC/contract awards or MultiClient programs

Historically Low Supply

New Energy Gains Momentum: Establishing a Solid Position in the Carbon Storage Geoservices Market

^▪ Successful completion of Northern Lights Carbon Capture and Storage (CCS) 4D baseline and acquisition over the Endurance CCS reservoir

• Awarded acquisition contract by Equinor over the Smeaheia carbon storage site in the North Sea
• Acquiring data for CCS as part of Snøhvit 4D
• Entered into an agreement with deepC Store (dCS) to co-develop CCS projects in Asia Pacific
  • Provide advisory services in exchange for shares in dCS
• Expect to generate revenues of ~\$30 million relating to New Energy business in 2022

Ramform Hyperion while acquiring the Endurance CCS survey during Q2 2022.

2022 Guidance and Year-to-date Performance

	Group cash cost	MultiClient cash investment	Active 3D vessel time allocated to Contract	Capital expenditures
2022 Guidance	~\$500 million	~\$125 million	~65%	~\$60 million
Year-to-date	\$222.8 million	~\$47.7 million	67%	\$35.1 million

Summary

Second highest quarterly revenues since Q4 2014

Successful private placement and obtained commitment for Super Senior debt facility

New Energy business continues to gain momentum

Winter season is firming up with activity and pricing continuing on a positive trend

Questions?

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COPYRIGHT

The presentation, including all text, data, photographs, drawings and images (the "Content") belongs to PGS ASA, and/or its subsidiaries ("PGS") and may be protected by Norwegian, U.S., and international copyright, trademark, intellectual property and other laws. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior written permission by PGS and applicable acknowledgements. In the event of authorized reproduction, no trademark, copyright or other notice shall be altered or removed. © 2022 PGS ASA. All Rights Reserved.

This presentation must be read in conjunction with the Q2 2022 earnings release and the disclosures therein.

Appendix Yard Stays* Next Six Months

Vessel	When	Expected Duration	Type of Yard Stay
Ramform Atlas	Q3/Q4 2022	10 days	Port call – general maintenance and source controller upgrade
Ramform Titan	Q3/Q4 2022	5 days	Port call – general maintenance
Ramform Vanguard	Q3/Q4 2022	7 days	Port call – general maintenance and UPS upgrade

Disclaimer

▪ This Presentation is for informational purposes only. The information contained in this Presentation, unless otherwise specified, is only current as of the date of this Presentation and is subject to further verification and amendment in any way without liability or notice to any person. The information contained in this Presentation has not been independently verified.

▪ The information in this Presentation includes forward-looking statements, which are based on the Company's assumptions, analysis and current expectations and projections about future events. These forward-looking statements is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future and are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond the Company's control. Actual experience may differ, and those differences may be material. Factors that might cause or contribute to such differences include, but are not limited to, global economic conditions, the impact of political, economic and regulatory developments in the United Kingdom, Norway, United States and the European Union and other relevant geographies, and planned capital expenditure. None of the Company nor any of its affiliates or their respective directors, officers, employees, advisers, agents or representatives (each a "Company Related Person") undertakes any obligation to update any forward-looking statements to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

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