PGS ASA Reassuring Late Sales and Attractive Contract Rates Note: Petroleum Geo-Services AS is a holding company ultimately wholly owned by its listed parentPGS ASA , and owning directly or indirectly the absolute majority, of the subsidiaries in thePGS ASA group of companies. Petroleum Geo-Services AS is the issuer of the$450 million Nordic bond and is pursuant to the bond terms required to file unaudited consolidated interim quarterly financial statements in accordance with IFRS within 2 months after the end of the relevant quarter. Highlights Q4 2023 oRevenues and Other Income of$265.6 million , compared to$215.0 million in Q4 2022 oCash flow from operations of$114.4 million , compared to$81.3 million in Q4 2022 oCash and cash equivalents of$177.2 million , compared to$358.3 million in Q4 2022 oGross debt of$778.1 million , compared to$1,051.3 million in Q4 2022 oCommenced large offshore wind site characterization survey in the US oShareholders approved the merger plan with TGS with close to 100% support oAfter year-end, repaid the Term Loan B and refinanced the Super Senior Loan In Q4, Petroleum Geo-Services AS and its subsidiaries (the "Company") delivered a doubling of Q4 MultiClient late sales, compared to the average of the three first quarters of 2023, which speaks to the value of the Company's well-positioned and geographically diverse MultiClient data library. In Q4 most of the Company's late sales came fromEurope andWest Africa . The Company worked on highly pre-funded MultiClient projects inBrazil andMalaysia in the quarter, and in addition the Company recorded significant sales from surveys in the processing phase. Profitability of the Company's contract projects in Q4 were at level with the summer season. The Company is experiencing lower acquisition activity over the winter season. At the same time the value of contract leads continues to grow. In addition, the Company see increasing opportunities for new MultiClient programs and anticipate a more robust summer season market. The Company successfully entered the offshore wind site characterization market in 2023. In Q4, the Company took another step by commencing a large contract job offshore the US which will continue to late Q2 2024. The recent announcement of a follow-on project inEurope and a growing opportunity basket for more offshore wind work bodes well for the Company's New Energy business. For the full year 2023 the Company benefitted from an improving data acquisition market with a high pre-funding level on our MultiClient projects and increasing profitability for contract work. Despite this, revenues declined compared to 2022 owing to unexpected scheduling and operational challenges, and lower than expected MultiClient late sales. In September,PGS ASA announced an intention to merge withTGS ASA to establish the premier energy data company and in December shareholders of both companies approved the merger with close to 100% support. The process with the Norwegian andUK competition authorities is ongoing andPGS ASA expect the legal merger process to close in Q2 2024. The combined company will be a complete, fully integrated service provider uniquely positioned to unlock substantial value for shareholders, customers and employees. Outlook As the global energy transition evolves, the Company expects energy consumption to continue to increase over the longer term with oil and gas being an important part of the energy mix. Offshore reserves will be vital for future energy supply and supports demand for marine seismic services. The seismic market is improving on the back of increased focus on energy security, several years of low investment in new oil and gas supplies, and attractive oil and gas prices. Offshore energy investments are expected to continue to increase in 2024. The seismic acquisition market benefits from the higher spending level and a limited supply of seismic vessels. PGS New Energy is expected to benefit from an increasing tendering activity for offshore wind site characterization projects. See attached file for Petroleum Geo-Services AS fourth quarter and preliminary full year 2023 report, also available on www.pgs.com and www.newsweb.no.
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