PGS ASA

Q1 2020 Results - Seite 2

We completed a successful refinancing at the start of the year. With a strong positive cash flow in Q1, we have further reduced net interest bearing debt by $130.0 million and increased the liquidity reserve to $266.9 million. Our efforts to reduce cost and capital expenditures aim at being cash flow positive before debt repayments going forward. However, in order to maintain a strong liquidity position while experiencing uncertain market conditions, we are reviewing alternatives to preserve our liquidity including potential extensions of the scheduled reduction of our revolving credit facility, amortization holidays and other debt related initiatives.”

Rune Olav Pedersen,

President and Chief Executive Officer

Outlook
PGS expects the revised and lower investment plans among energy companies to significantly reduce demand for seismic services in 2020, and likely into 2021. The Company believes the extreme imbalances in the oil market are temporary. When the pandemic crisis is over, energy consumption will resume with oil and gas continuing to play a key role in the energy mix. Offshore reserves will be vital for future supply and support the demand for marine seismic services. The expected future recovery of the seismic industry is likely to be strengthened further by another round of industry capacity reductions and a pent-up exploration and production demand.

Based on current operational projections, with six vessels in operation in the third quarter and five vessels in operation for the remaining part of 2020, and with reference to disclosed risk factors, PGS expects full year 2020 gross cash costs to be below $500 million.

2020 MultiClient cash investments are expected to be $150-200 million.

Approximately 50% of 2020 active 3D vessel time is currently expected to be allocated to MultiClient acquisition.

Capital expenditure for 2020 is expected to be below $50 million.

The order book totaled $217 million at March 31, 2020 (including $89 million relating to MultiClient). The order book was $322 million at December 31, 2019 and $238 million at March 31, 2019.

Consolidated Key Financial Figures (In USD millions, except per share data)	Quarter ended March 31,		Year ended December 31,
	2020