PGS ASA

Regulatory Filings • Mar 8, 2022

PGS ASA: Change of measurement basis for Segment Reporting

PGS ASA: Change of measurement basis for Segment Reporting

March 8, 2022: Oslo, Norway, the board of directors of PGS ASA ("PGS" or the

"Company") has approved a change in the Company's basis for Segment Reporting.

PGS has since 2018 prepared its internal management reporting based on the

principles applied prior to the implementation of IFRS 15, Revenue from Customer

Contracts. This method has recognized MultiClient pre-funding revenue on a

percentage of completion basis, and the related amortization of MultiClient

library based upon the ratio of aggregate capitalized survey costs to forecasted

sales. Maintaining the Segment Reporting on this basis has required maintaining

two different sets of accounting records.

Going forward, the Company will apply IFRS 15 as measurement basis also for its

internal reporting, generally recognizing MultiClient pre-funding revenues at

delivery of the final processed data, which is typically later than the

acquisition of the seismic data.

Consequently, from and including Q1 2022, the Company will no longer present

revenue and amortization for pre-funding contracts on a percentage of completion

basis as segment information.

The change is intended to streamline internal processes and simplify external

financial reporting aligned with IFRS regulations, and is in line with the

Company's focus on reducing turnaround times for MultiClient surveys. A similar

change has recently been announced by another company in the seismic industry.

The Company will provide Alternative Performance Measures (APMs) and additional

disclosures to enable evaluation of progress for ongoing MultiClient surveys.

More information will be provided ahead of the Company's reporting for Q1 2022.

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 and carbon storage. PGS'

headquarters 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 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 the 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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