Petroleum Geo-Services ASA : PGS' Business Model Delivers Strong EBIT Margin In A Challenging MultiClient Quarter

LYSAKER (OSLO), Norway, Oct. 25, 2013 (GLOBE NEWSWIRE) --
  Highlights Q3 2013  * Order book of $579 million, up 30% from Q2 2013  * Revenues of $365.6 million, compared to $388.3 million in Q3 2012  * EBITDA of $216.0 million, compared to $222.1 million in Q3 2012  * EBIT of $108.3 million, compared to $110.9 million in Q3 2012  * Group EBIT margin of 30%  * MultiClient pre-funding was 90% of capitalized cash investment, compared to    133% in Q3 2012  * Record external data processing revenues of $34.3 million  * Ramform Titan in full operation with excellent performance  * Liquidity reserve further strengthened at improved terms by increasing the    revolving credit facility from $350 million to $500 million and extending    maturity from 2015 to 2018  * Full year EBITDA guidance adjusted to approximately $850 million, due to our    decision to mobilize for the Full Azimuth GeoStreamer survey in GoM, a    reduction in pre-funding level to 95-100% and increased risk to Q4    MultiClient late sales"I am pleased to report a robust EBIT margin for the Company of 30% in Q3,driven by our focus on price optimization of high value contracts, solidperformance and allocation of more fleet capacity to our portfolio of attractiveMultiClient projects. We are almost fully booked for Q4 this year. 2014 isfirming up and we have booked 70% of Q1, 50% of Q2 and 30% of Q3.  Averagepricing for the 2014 contract work booked so far is slightly higher  thanaverage 2013 pricing. We expect the current contract pricing weakness post theNorth Sea season to primarily impact Q4 and Q1.We have decided to re-enter the Gulf of Mexico with a Full Azimuth GeoStreamersurvey adding another dimension to data quality in the region. The surveycommences in the fourth quarter and acquisition will be completed early summer2014.With the increased earnings potential brought by our new build program and ourtechnology differentiation we are well positioned to further improve return oncapital employed and dividend capacity.From our clients we have experienced increased focus on preserving theirdividend capacity, which has  impacted on their seismic spending. Customercaution on spending lessens the likelihood of seeing the normal seasonal Q4increase for MultiClient sales. "Jon Erik Reinhardsen,President and Chief Executive Officer+----------------------------------+----------------+----------------+---------+|                                  |                |                |         ||                                  | 3(rd) Quarter  |  Nine months   |Full year||Key Financial Figures             +-------+--------+-------+--------+---------+|(In USD millions, except per share|       |        |       |        |         ||data)                             | 2013  |  2012  | 2013  |  2012  |  2012   ||                                  |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Revenues                          |  365.6|   388.3|1,142.1| 1,158.2|  1,518.3|+----------------------------------+-------+--------+-------+--------+---------+|EBITDA (as defined, see note 1)   |  216.0|   222.1|  627.9|   614.0|    776.2|+----------------------------------+-------+--------+-------+--------+---------+|EBIT                              |  108.3|   110.9|  315.7|   233.2|    293.8|+----------------------------------+-------+--------+-------+--------+---------+|Income before income tax expense  |   97.9|   101.9|  283.1|   183.5|    228.5|+----------------------------------+-------+--------+-------+--------+---------+|Net income to equity holders      |   74.2|    86.9|  208.2|   145.4|    185.5|+----------------------------------+-------+--------+-------+--------+---------+|Basic earnings per share ($ per   |   0.35|    0.40|   0.97|    0.67|     0.86||share)                            |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Diluted earnings per share ($ per |   0.34|    0.40|   0.96|    0.67|     0.85||share)                            |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Net cash provided by operating    |  189.4|   260.2|  563.4|   588.2|    752.9||activities                        |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Cash investment in MultiClient    |  120.9|    91.4|  262.0|   226.1|    297.4||library                           |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Capital expenditures (whether paid|   93.2|    76.6|  364.5|   228.6|    368.1||or not)                           |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Total assets (at period end)      |3,511.2|3,040.3*|3,511.2|3,040.3*| 3,275.6*|+----------------------------------+-------+--------+-------+--------+---------+|Cash and cash equivalents (at     |  299.0|   290.3|  299.0|   290.3|    390.3||period end)                       |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+|Net interest bearing debt (at     |  638.1|   381.1|  638.1|   381.1|    435.6||period end, see Note 10)          |       |        |       |        |         |+----------------------------------+-------+--------+-------+--------+---------+*The financial information for 2012 is restated from retrospectively adoptingIAS19R, see note 3The complete Q3 2013 earnings release and presentation can be downloaded fromwww.newsweb.no or www.pgs.com  FOR DETAILS, CONTACT:  Bård Stenberg, Investor Relations Manager  Phone:   +47 67 51 43 16  Mobile:  +47 99 24 52 35  Tore Langballe, SVP Corporate Communications  Phone:   +47 67 51 43 75  Mobile:  +47 90 77 78 41This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.Q3 2013 earnings release : http://hugin.info/115/R/1738177/583055.pdfQ3 2013 presentation: http://hugin.info/115/R/1738177/583056.pdf[HUG#1738177]