Record-breaking revenue for PGS

by on July 26, 2012 9:47 am BST

Revenue for the quarter reached almost $405 million, with the company posting a 50% leap on last year’s earnings before interest, taxes, depreciation and amortisations (EBITDA), to $246.2 million.

PGS’ profits were mainly attributed to its MultiClient 3D seismic database, which brought in $236 million, up by almost half on 2011’s second quarter.

“We have delivered strong growth in all business units driven by our great people, unique Ramform vessels and differentiating GeoStreamer technology,” PGS chief executive John Erik Reinhardsen said in a statement.

“In particular, we have achieved another record-breaking MultiClient quarter and significant margin uplift in Marine Contract.”

PGS also recorded a considerable jump in cash flow from operations, up 78% on last year to $176.5 million, and its pre-tax profit more than doubled to $65.4 million.

“The profit improvement programme is beginning to deliver results,” Reinhardsen said.

The company’s order book totalled $689 million by the end of the quarter, including $160 million of committed pre-funding on scheduled MultiClient projects. 

However, contract revenues had decreased by $9.7 million against the 2011 second quarter.

PGS said this was primarily due to less capacity allocated to 3D contract work.

“The seismic market continues to strengthen with improvements in project leads, active bids and order book size. Demand for GeoStreamer is stronger than ever,” he said.

As reported by Upstream last week, PGS has increased its full year 2012 EBITDA forecast for the second time to be between $750 million and $800 million.