PGS minus to plus in operations – earning more than NOK 1 billion in 2022

PGS minus to plus in operations – earning more than NOK 1 billion in 2022

Seismic company PGS presents its quarterly and annual results after a stellar year at Oslo Bors:

  • In November, the company took over 1.5 billion Norwegian kroner To reduce leverage.
  • Half a year ago, in May, the company brought 850 million NOK.
  • “We delivered our second-best quarter, measured by sales volume, since the last quarter of 2014,” Group CEO Ron-Olav Pedersen said this summer, when he stood up with a new semi-annual report in hand.
  • Competitor TGS pulled PGS several times, but left Summer is in the bidding In Magseis Fairfield.

For the full year 2022, the operating result ended at $117 million, which is a sharp improvement from an operating deficit of $32 million in 2021. This corresponds to approximately NOK 1.1 billion.

Total income for the past year was $817.2 million (about eight billion crowns), up from $590 million in 2021.

– We had a slow start until 2022, when about half of the fleet has been retired. But since early in the second quarter, utilization has improved significantly and a recovery in the seismic market is evident in the results, CEO Ron-Olav Pedersen wrote in an exchange announcement.

PGS stock rose more than eight percent shortly after trading began, but around 09.45 the rally reversed to a decline of about 0.4 percent.

Still losing money on the bottom line

There are no more than two Several years ago, after several rounds of unsuccessful negotiations, the company reached an agreement with several lenders on deferring debt maturity for two years..

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In today’s quarterly report, it shows net interest-bearing debt of $616.7 million (about NOK six billion) at the end of the quarter, down more than $300 million from the fourth quarter of 2021.

After telling current and prospective investors and analysts at the Felix Convention Center that the market raised the price for hiring by 35 percent last year, the CEO made a comparison:

— We have our largest order book since the third and fourth quarters of 2014 — and they’re apples and apples, which are comparable order books.

Further in the calculations, it is evident that the company is in a much better position than it was at the end of 2021, even if money is still wasted on the bottom line. The result of last year was a pre-tax profit minus $6.7 million, compared to a pre-tax loss of $163.8 million in 2021.

This corresponds to a pre-tax loss for 2022 of approximately NOK 66 million at today’s exchange rate.

The company’s cash flow increased from $326.6 million in 2021 to $371.3 million in 2022. At the end of the year, the cash balance was $363.8 million from $170 million at the end of 2021. About 3.6 billion.

The company also reported its fattest order book since the third quarter of 2014, which at the end of last year was $416 million.

Many big wins

This week, the share price is down somewhat ahead of the quarterly numbers, after the price peaked at NOK 8.50 last week, close to the price levels the share reached in September.

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When the company raised the money in the fall, it was done at the rate of NOK 6.70. Many of the investors who appeared on the shareholder lists last year were pivotal in raising capital, such as Magnus Halvorsen.

Halvorsen is among those with large unrealized debts Gains in earthquake company. He is currently the fourth largest shareholder in PGS with a contribution of just over NOK 200 million.

Behind Halvorsen are Kjell Christian Ulrichsen and family with shares worth 180 million and Edwin Ostbo with more than 60 million shares. Real estate investor Kim Johnson has a similar job to Ostbo.

The return of PGS among investors comes after suffering in a seismic market that is under increasing pressure after the oil crisis, which stifled oil companies’ investments.

new projects

In recent days, PGS announced its investment in offshore wind and its contract with Equinor.

When PGS provided numbers for the third quarter this fall, they showed sales volume of just over NOK 2 billion and operating profit of NOK 350 million.

This quarterly report showed that PGS had interest-bearing debt of just over NOK eight billion and a cash balance of NOK 1.85 billion as of September.

Two weeks ago, the initial sales figures published by the company, and they showed that the company is expected to report revenue of $217 million for the fourth quarter. In contrast, revenue ended at $210 million in the same period a year earlier.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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