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Petroleum Geo-Services ASA
Unaudited Preliminary 4th Quarter 2003 Results
Prepared on Norwegian GAAP basis
Oslo, March 16, 2004
P E T R O L E U M G E O - S E R V I C E S
Cautionary Statement & Qualifications
• This presentation contains forward looking information
• Forward looking information is based on management assumptions and analyses
• Actual experience may differ, and those differences may be material
• Forward looking information is subject to uncertainties and risks which are disclosed in PGS SEC filings
• This presentation must be read in conjunction with the press release for the 4th quarter and full year 2003 results and the disclosures therein
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.” PGS is continuing its efforts to have an audit of its 2002 financial statements and a re-audit of its 2001 financial statements completed under U.S. GAAP. PGS is also continuing efforts to prepare audited financial statements for 2003 under both Norwegian GAAP and U.S. GAAP and to address material weaknesses in its system of internal control over financial reporting that were disclosed in November 2003. There can be no assurance, however, as to whether or when these audits and re-audit can be completed. In addition, if and when completed, the audits and re-audit could result in restatements of PGS’ previously filed U.S. GAAP audited financial statements and restatements or other adjustments to its 2002 and 2003 U.S. GAAP interim financial statements. Those restatements and adjustments could be material, although they are expected to be of a non-cash nature. Furthermore, although the audits and re-audit are being conducted under U.S. GAAP, the findings from these audits and re-audit may have an impact on Norwegian GAAP 2002 and 2003 historical financial statements. Classification of debt in the accompanying unaudited, preliminary consolidated balance sheet has been made assuming that either the audited U.S. GAAP financial statements will be timely completed or that necessary waivers under PGS’ debt agreements will be obtained.
P E T R O L E U M G E O - S E R V I C E S
We have come a long way…
Unsustainable debt levels
Failed Veritas merger catalyst for fundamental change
Redirection of business priorities
New Board and new management
Refinancing goals developed
Focus on operations and customers
Convincing cash flow and cost performance
Successful debt restructuring
High level of stakeholder support, with high stakeholder recovery
2002: Facing Realities
2002: Facing Realities
2003: FinancialRestructuring
2003: FinancialRestructuring
P E T R O L E U M G E O - S E R V I C E S
Successful financialRestructuring
We gained a competitiveedge for the future
Successful financialRestructuring
We gained a competitiveedge for the future
2003 Main Achievements
Our bestSafety
Performanceever
Our bestSafety
Performanceever
StrongRegularity
Performance
StrongRegularity
Performance
ImprovedSeismic
Contract Position
ImprovedSeismic
Contract Position
SuccessfulRevenue Build inPertra
SuccessfulRevenue Build inPertra
Improved Cost
Position
Improved Cost
Position
3 FPSOContractsProlonged
3 FPSOContractsProlonged
P E T R O L E U M G E O - S E R V I C E S
Well ahead of our main targets communicated February 2003
• Deliver cost cutting of minimum $75 millionAhead
• Improve Working capital by a minimum of 25 million Done• Reduce Multi-Client investments by minimum 20% Done• Increase level of pre-funding of Multi-Client projects Done• Continue to improve market share in the contract market Done• Improve late sales from the Multi-Client library No• Increase production over the Ramform Banff FPSO
Partly• Keep Petrojarl I, Petrojarl Varg and Petrojarl Foinaven Done
employed on attractive contracts Done• Fully capture the upside of Pertra’s cash generation potential Done• Implement a flatter and simpler organisational structure Done
2003 full year Cash flow post CAPEX $327 million –up 56,4% -Well ahead of business plan
P E T R O L E U M G E O - S E R V I C E S
• Q4 Group cash flow post CAPEX 1) of $63,7 million brings year in line with Business Plan
• Impairment charges totaling $496,6 million recognized in Q4 ($716,8 for the full year)
• Varg Field extension confirmed after EOR drilling success
• Chapter 11 process completed in 100 days – Nov 5th
– Massive support from creditors and shareholders
– Interest bearing debt reduced by $1.283 million
– New Board of Directors
• broad international and industry background
Q4 Group Highlights
1) Defined as Adjusted EBITDA (as defined) less CAPEX and Investments in Multi Client Library
P E T R O L E U M G E O - S E R V I C E S
Comments:• Marine seismic: Decline in late sales, strong contract market performance low vessel utilization in Q4 2003; Accounting rules changes impact $9 million • Pertra: High volume and high oil prices• FPSO: Foinaven production problems solved end October 2003
1) Defined as EBITDA (as defined) less CAPEX and Investments in Multi Client Library
2002 v.s 2003 Cashflow(1) Post Capex – Changes Q4 2002/2003
MarineGeo 2002 2003ProductionPertra
209
-2889
29
327
USD million
Onshore
27
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Comments:• Marine seismic: Still high share in the contract market, low vessel utilization in Q4 2003; Accounting rules changes impact $... million • Pertra: High volume and high oil prices• FPSO: Foinaven production problems solved end October 2003
1) Defined as EBITDA (as defined) less CAPEX and Investments in Multi Client Library
Q4 Cashflow(1) Post Capex – Changes Q4 2002/2003
Q4 2002 Q4 2003ProductionMarineGeo
Pertra
85,4
-2,9
-33,2
8,063,7
USD million
Onshore
5,4
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Highlights Marine Geophysical and Onshore
• Competitors follow PGS’ lead into contract market
• Q4 Cash flow post CAPEX down 25,4% YOY
– More steaming and yard stay– 2 C crew shut down in November– Lower MC sales (Brazil), partly offset by
higher contract sales and revenues per vessel month
• Q4 Contract / MC use of vessel capacity 78/22% (71/29%)
• Continued improvement in vessel efficiency/revenue
• Onshore Cashflow increasing due to improved project management
P E T R O L E U M G E O - S E R V I C E S
Q4 Marine Geophysical Capacity use and Vessel Revenue
0 %
20 %
40 %
60 %
80 %
100 %
Q4 02 Q1 03 Q2 03 Q3 03 Q4 03
Contract
MC
Average Monthly Contract Revenue per Vessel
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2002 2003
US
D 1
,00
0
All vessels
12 moths moving average
P E T R O L E U M G E O - S E R V I C E S
Multi Client NBV v.s Late Sale
2 %
17 %
19 %
41 %
13 %
8 %
Middle East
Europe
GoM
Brazil
Asia
Africa
3 %
15 %
29 %
16 %
7 %
30 %
Net Book value per region MC Revenue 2003 per region
Historical NBV development
2001 –$960 million
2002 -$640 million
2003 –$428 million
P E T R O L E U M G E O - S E R V I C E S
Marine and Onshore Multi-client Investments cash in/out 1991-03
P E T R O L E U M G E O - S E R V I C E S
Q4 highlights Production and Pertra
• Foinaven compressor problems solved and vessel back in full production late October 2003. EBITDA effect $9.5 million for 2003
• 1st well in the Varg Enhanced Oil Recovery (EOR) program confirms new reservoir model, increasing recoverable reserves substantially.– Reserve estimate increased to 70 million barrels– Production increased substantially into 2004
• Heads of Agreement in place for improved Banff contract with Canadian Natural Resources (CNR)– Minimum day rate $125,000,-– Fixed day rate $68,000,-– Tariff $5 per barrel of produced oil
– Subject to license partners approval
P E T R O L E U M G E O - S E R V I C E S
Revised FPSO Deployment Schedule PGS estimate
Petrojarl I - Operating for Statoil on Glitne field. Additional well extends production to 2007.
Petrojarl Varg - Operating for Pertra on Varg field. Successful drilling program extends field life,
possibly into 2008
Petrojarl Foinaven - Operating for BP on Foinaven field. Duration estimated to be past 2008
Ramform Banff - Operating for CNR on Banff field. Duration expected to 2011
2002 2003 2004 2005 2006 2007 2008 2009
Ramform Banff
Petrojarl Varg
Petrojarl Foinaven
Petrojarl I
2002 Business Plan New estimate
P E T R O L E U M G E O - S E R V I C E S
Pertra headlines - 2003
•Pertra’s oil replacement rate from start 2003 to start 2004 is 458%
•Pertra has completed 4 wells to date, all in accordance with the predicted outcome.
•PGS seismic and reservoir services have been fundamental to the success.
•Pertra has introduced new incentive arrangements with drilling contractors.
•Pertra is seeking new licenses in the Norwegian 18th round to apply its competence in small field E&P.
P E T R O L E U M G E O - S E R V I C E S
Q4 Key Figures, Norwegian GAAP
New accounting principles reduces comparability between 2003 and 2002.
Vessel steaming and yard stay is no longer deferred or capitalised to multi-client.
(In $ millions) 2003 2002 % change 2003 2002 % change
Revenues 260,5 261,7 -0,5 % 1 111,5 992,3 12,0 %
EBITDA as defined (A) 99,4 127,1 -21,8 % 477,7 460,5 3,7 %
CAPEX (B) (24,6) (7,2) 241,7 % (57,4) (60,8) -5,6 %
Investments in MCS (C) (11,0) (34,5) -68,1 % (93,0) (190,4) -51,2 %
Cashflow post investments 63,7 85,4 -25,4 % 327,3 209,3 56,4 %(A+B+C)
Shareholders Equity 373,0 (42,0)
Quarter ended December 31, Twelve months ended Dec. 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
150
170
190
210
230
250
270
290
310
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Revenues by Quarter 2002/2003
$ Million
Q4 2003 comments:
Revenues at par with 4Q 2002
Marine Geophysical down $18.5 million due to reduced MC sales and increased steaming
Onshore increased revenue by $6.7 million
Production revenue unchanged
Pertra increased revenue by 60% ($9.9 million)
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Adjusted EBITDA (1) by Quarter 2002/03
(1) EBITDA, as defined, consists of operating income (loss) before depreciation and amortization, as well as unusual items
Q4 2003 comments:
•Down $27.8 m to $99.3 million
•Marine Geophysical decreased by $51.4 million
Reduced MC salesReduced
capitalization to MC library
Lower vessel utilization
•Onshore increased by $8.9 million
•Production unchanged
•Pertra up $13.7 million
$ million
A MC sale of USD 18,3 million in Brunei was booked in Q1 03,
and reversed in Q2 03
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Unaudited, preliminary consolidated statement of cash flow
2003 2002 2003 2002(In thousands of dollars) Unaudited Unaudited Unaudited Audited
Cash flows from operating activities:Net income (loss) (522 431)$ (120 703)$ (814 055)$ (1 245 692)$ Adjustments to reconcile net income (loss) to
net cash provided by operating activities:Depreciation and amortization charged to expense 82 311 112 249 313 481 356 427 Non-cash unusual items and sale of subsidiary, net 484 430 81 613 721 602 1 039 472 Non-cash write-off of deferred debt costs and issue discounts - - 13 152 - Cash effects related to assets and liabilities held for sale 257 3 474 3 342 5 540 Provision (benefit) for deferred income taxes (17 771) (9 683) (792) 184 577 Working capital changes and other items (7 423) 25 642 4 632 (9 624)
Net cash provided by operating activities 19 373 92 592 241 362 330 700 Cash flows from investing activities:
Investment in multi-client library (11 003) (34 491) (93 044) (190 436) Capital expenditures (24 640) (7 207) (57 397) (60 759) Development of assets held for sale - (14 304) (118) (77 364) Sale of subsidiary - 20 222 50 115 20 222 Other items, net 357 564 3 835 (9 030) Net cash (used in) provided by investing activities (35 286) (35 216) (96 609) (317 367)
Cash flows from financing activities:Redemption of preferred stock - (21 783) (64 105) (98 983) Repayment of long-term debt (5 327) (4 960) (11 241) (241 826) Principal payments under capital lease obligations (4 185) (4 900) (17 539) (15 496) Net increase (decrease) in bank facility and short-term debt (91) 47 (48) 335 348 Net receipts (payments) under tax equalization swap contracts - - - 9 566 Other items, net (17 932) - (17 932) 8 098 Net cash (used) provided by financing activities (27 535) (31 596) (110 865) (3 293) Effect of exchange rate changes in cash and cash equivalents - 133 14 537 Net increase (decrease) in cash and cash equivalents (43 448) 25 913 33 902 10 577 Cash and cash equivalents at beginning of period 189 954 86 691 112 604 102 027
Cash and cash equivalents at end of period 146 506$ 112 604$ 146 506$ 112 604$
Quarter ended Twelve months endedDecember 31, December 31,
(1) Certain reclassifications have been made to prior period amounts to conform to the current presentation.
(2) This financial information prepared under Norwegian GAAP is unaudited, preliminary and subject to adjustment, and any such adjustments could be material. This information should be read in conjunction with, and is subject to the significant qualifications discussed elsewhere in this earnings release.
P E T R O L E U M G E O - S E R V I C E S
The New Debt Structure as per 5th November 2003
• 10% 7 year notes
• 8% 3 year notes
• 8 year term loan
• Oslo Seismic & capital leases
$ million
194
5
250
746
Gross interest bearing debt $1,195 million
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Fresh Start Accounting
Updated information on “Fresh Start” Accounting
Under US GAAP
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Unaudited, preliminary Fresh Start Balance Sheet on US GAAP basis
November 1,
(In thousands of dollars) 2003
Assets
Cash and cash equivalents 142 803$
Accounts receivable, net 196 662
Other current assets 56 153
Total current assets 395 618
Multi-client library, net 429 196
Property and equipment, net 1 049 153
Oil and gas assets 23 946
Other long-term assets, net 100 207
Total assets 1 998 120$
Liabilities and Shareholders' Equity
Current portion of long-term debt and capital lease obligations 29 955$
Accounts payable and accrued expenses 221 167
Income taxes payable 46 220
Total current liabilities 297 342
Long-term debt and capital lease obligations 1 197 487
Other long-term liabilities 164 543
Deferred income taxes 10 802
Total liabilities 1 670 174
Shareholders' equity 327 946
Total liabilities and shareholders' equity 1 998 120$
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Fresh Start Accounting (cont’d)
• Property and equipment– FPSO’s $678.2 million (contract value excluded)– Seismic vessels and equipment $355.8
• Other long term assets– Fair value of intangible assets $68.8 million – most important;
• FPSO related contracts $31.8 million• Existing technology $31.6 million
– Order backlog $5.4 million
• Other long term liabilities– $46.7 million PV of defeased financial lease payments sensitive to
sterling LIBOR changes
• Long term debt:– Nominal value of $1,189.8 adjusted to $1,227.4 million market value
• Accounts payable– $40.6 million to be distributed to former banks and bondholders
• Oil and gas assets valued at $23.9 million could be subject to a gross-up
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Fresh Start Accounting (cont’d)
• Accounting for steaming and yard stay:– Previously deferred such expenses, now be expensed as
incurred.• Capitalization of cost into multi-client library:
– Expenses related to steaming and yard stay and certain indirect cost, now expensed as incurred rather than capitalized.
• Amortization of multi-client library:– Continue to use Sales Forecast Method– Maximum amortization period reduced from 8 to 5 year
• Oil & gas assets:– Full Cost Method replaced with Successful Efforts Method
• Depreciation of long lived assets:– Seismic Ramform vessels + FPSO’s from 30 to 25 years– Petrojarl 1 remain at 30 years due to recent refurbishment
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Outlook - Financial
• Overall: 2004 Cash Flow anticipated to be in line with Business Plan
• Production– EBITDA Positively impacted by prolonged Varg Contract
• Marine Geophysical– Market expected to strengthen after Q1– Uncertainty around licensing rounds in Brazil – Increased competition in Contract Markets a main uncertainty
• Onshore– High bidding activity, -limited growth
• Pertra– Significant increase in production
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Perspectives on The Seismic Industry
• Contract markets are growing• Continued overcapacity likely• Need and room for higher pricing of technology• ”Leakages” will continue, -new marginal players and capacity
expected to enter the scene• Substantial differences in cost/productivity among the different
companies
PGS strategy is to further enhance our leadership in productivity, through continued focus on cost and technology.
We aim to retain our high market share in the contract market without sacrificing profitability.
P E T R O L E U M G E O - S E R V I C E S
PGS’ Main Business Goals 2004
Achieve re-listingin the US andbest possible
Ratings
Achieve re-listingin the US andbest possible
Ratings
Free Cash Flowabove previousBusiness Plan
Free Cash Flowabove previousBusiness Plan
Furtherimprovements in
Safety, Regularityand Cost
Furtherimprovements in
Safety, Regularityand Cost
Identifyattractive
Restructuring Opportunities
Identifyattractive
Restructuring Opportunities
Realise concrete BusinessSynergies between
BU’s
Realise concrete BusinessSynergies between
BU’s
Build strengthin Governance
and HR capabilities
Build strengthin Governance
and HR capabilities
Rebuilding
Confidence
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminary Consolidated P&L
(In $ millions) 2003 2002 Variance 2003 2002 VarianceRevenues 260.5 261.7 (1.2) 1 111.5 992.3 119.2 COGS (143.4) (122.0) (21.4) (577.1) (473.9) (103.2) SG&A (17.0) (11.9) (5.1) (54.2) (55.2) 1.0 R&D (0.8) (0.7) (0.1) (2.5) (2.8) 0.3 Operating costs (161.2) (134.6) (26.6) (633.8) (531.9) (101.9) Adjusted EBITDA as defined 99.3 127.1 (27.8) 477.7 460.4 17.3 CAPEX (24.6) (7.2) (17.4) (57.4) (60.7) 3.3 Cash Investment in MCS library (11.0) (34.5) 23.5 (93.0) (190.4) 97.4 Cashflow before debt service 63.7 85.4 (21.7) 327.3 209.3 118.0
Depreciations/amortization (82.3) (112.2) 29.9 (313.5) (356.4) 42.9 Unusual items (18.9) (8.8) (10.1) (77.0) (15.4) (61.6) Impairment of long-term assets (496.6) - (496.6) (716.8) (807.4) 90.6 Other Gain (loss), net (9.8) (0.3) (9.5) (32.0) 37.7 (69.7) Net financial items (19.8) (41.6) 21.8 (110.3) (147.3) 37.0 Income taxes 6.2 (7.2) 13.4 (35.9) (201.9) 166.0 Discontinued operations, net of tax (0.5) (77.7) 77.2 (6.3) (215.3) 209.0 Net income, before accounting change (522.4) (120.7) (401.7) (814.1) (1 245.6) 431.5
Working capital:Accounts receivable 168.2 220.1 (51.9) Other current assets 64.7 74.1 (9.4) Accounts payable/ other liabilities (229.6) (278.5) 48.9 Net working capital 3.3 15.7 (12.4)
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminary Revenues
(In thousands of dollars) 2003 2002 Variance 2003 2002 VarianceMarine Geophysical: - Multi-client pre-funding 8 113$ 17 391$ (9 278) 49 964$ 94 025$ (44 061) - Multi-client late sales 45 804 61 797 (15 993) 148 128 160 373 (12 245) - Contract seismic 70 436 65 778 4 658 348 579 261 904 86 675 - Other 10 063 7 885 2 178 36 708 31 884 4 824 Total Marine Geophysical 134 416 152 851 (18 435) 583 379 548 186 35 193 Onshore: - Multi-client pre-funding 3 608 2 372 1 236 15 953 12 361 3 592 - Multi-client late sales 1 203 865 338 9 215 1 726 7 489 - Contract seismic 27 489 22 412 5 077 119 332 95 459 23 873 - Other 195 119 76 -266 -452 186 Total Onshore 32 495 25 768 6 727 144 234 109 094 35 140 Production: - Petrojarl I 20 152 16 285 3 867 67 741 62 631 5 110 - Petrojarl Foinaven 26 872 32 781 (5 909) 112 099 133 364 (21 265) - Ramform Banff 11 645 10 133 1 512 45 694 37 886 7 808 - Petrojarl Varg 13 487 12 535 952 67 288 69 455 (2 167) - Other 382 383 (1) 592 1 061 (469) Total Production 72 538 72 117 421 293 414 304 397 (10 983) Pertra: - Pertra 26 239 16 360 9 879 121 640 32 697 88 943 Total Pertra 26 239 16 360 9 879 121 640 32 697 88 943 Total Corporate/Global Services 4 014 3 283 731 13 986 12 845 1 141 - Elimination of internal charter of Petrojarl Varg(1) -9 166 (8 651) (515) -45 105 -14 883 (30 222)
Total 260 536 261 728 (1 192) 1 111 548 992 336 119 212
(1) Intercompany charter of Petrojarl Varg to Pertra AS.
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminaryMarine Geophysical P&L
(In $ millions) 2003 2002 Variance 2003 2002 VarianceRevenues 134.4 152.9 (18.5) 583.4 548.2 35.2 Adjusted EBITDA 37.1 88.5 (51.4) 253.0 276.1 (23.1) CAPEX (7.3) (3.0) (4.3) (16.0) (34.0) 18.0 Cash Investment in MCS library (7.5) (30.0) 22.5 (71.5) (165.4) 93.9 Cashflow before debt service 22.3 55.5 (33.2) 165.5 76.7 88.8
Cashflow MCS:MCS investments (7.5) (30.0) 22.5 (71.5) (165.4) 93.9 MCS prefunding 8.1 17.4 (9.3) 50.0 94.0 (44.0) MCS late sales 45.8 61.8 (16.0) 148.1 160.4 (12.3) MCS cashflow 46.4 49.2 (2.8) 126.6 89.0 37.6
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminary Onshore P&L
(In $ millions) 2003 2002 Variance 2003 2002 VarianceRevenues 32.5 25.8 6.7 144.2 109.1 35.1 Adjusted EBITDA 16.5 7.6 8.9 53.6 30.9 22.7 CAPEX (4.4) (4.4) (6.7) (7.0) 0.3 Cash Investment in MCS library (3.5) (4.4) 0.9 (21.5) (25.0) 3.5 Cashflow before debt service 8.6 3.2 5.4 25.4 (1.1) 26.5
Cashflow MCS:MCS investments (3.5) (4.4) 0.9 (21.5) (25.0) 3.5 MCS prefunding 3.6 2.4 1.2 16.0 12.4 3.6 MCS late sales 1.2 0.9 0.3 9.2 1.7 7.5 MCS cashflow 1.3 (1.1) 2.4 3.7 (10.9) 14.6
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminary Production P&L
(In $ millions) 2003 2002 Variance 2003 2002 VarianceRevenues 72.5 72.1 0.4 293.4 304.4 (11.0) Adjusted EBITDA 31.8 31.9 (0.1) 126.0 164.2 (38.2) CAPEX (1.7) 1.1 (2.8) (0.5) (10.9) 10.4 Cashflow before debt service 30.1 33.0 (2.9) 125.5 153.3 (27.8)
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Q4 Unaudited, preliminary Pertra P&L
(In $ millions) 2003 2002 Variance 2003 2002 VarianceRevenues 26.2 16.4 9.8 121.6 32.7 88.9 Adjusted EBITDA 17.8 4.1 13.7 59.1 4.1 55.0 CAPEX (10.9) (5.2) (5.7) (33.8) (8.2) (25.6) Cashflow before debt service 6.9 (1.1) 8.0 25.3 (4.1) 29.4
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Unaudited, preliminary investments & CAPEX
(In thousands of dollars) 2003 2002 Variance 2003 2002 Variance
Investments in multi-client library 11 003$ 34 491$ (23 488)$ 93 044$ 190 436$ (97 392)$
Capital expenditures: Marine Geophysical 7 336$ 3 036$ 4 300 16 030$ 34 039$ (18 009) Onshore 4 446 (84) 4 530 6 736 7 037 (301) Pertra 10 967 5 249 5 718 33 852 8 238 25 614 Production (a) 1 662 (1 052) 2 714 515 10 913 (10 398) Corporate/Global Services 229 58 171 264 532 (268) Total CAPEX 24 640 7 207 17 433 57 397 60 759 (3 362) (a) Credit in Q4 2002, relates to previous recorded disputed shipyard claim relating to a yard-stay in 2001, which now has been withdrawn.
Quarter ended December 31, Twelve months ended December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Unaudited, preliminary Balance Sheet 2003 - Assets
(In thousands of dollars) 2003 2002
AssetsCash and cash equivalents 146 506$ 112 604$ Accounts receivable, net 168 187 220 085 Other current assets 64 678 74 066 Assets held for sale - 68 768
Total current assets 379 371 475 523 Multi-client library, net 388 813 660 383 Property and equipment, net 1 087 365 1 689 684 Oil and gas assets 21 182 17 324 Other long-term assets, net 34 595 119 916
Total assets 1 911 326$ 2 962 830$
December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Unaudited, preliminary Balance Sheet 2003 -Liabilities & Equity
(In thousands of dollars) 2003 2002Liabilities and Shareholders' EquityShort-term debt and current portion of long-term debt and capital lease obligations 34 487$ 959 550$ Debt and other liabilities held for sale - 21 523 Accounts payable and accrued expenses 202 639 259 512
Income tax payable 26 902 19 034 Total current liabilities 264 028 1 259 619
Long-term debt and capital lease obligations 1 160 240 1 386 400 Other long-term liabilities 104 624 55 305 Deferred income taxes 9 370 97 307
Total liabilities 1 538 262 2 798 631 Minority interest 111 Commitments and contingencies Guaranteed preferred beneficial interest in PGS junior subordinated debt securities - 142 322 Mandatorily redeemable cumulative preferred stock related to multi-client securitization - 63 954 Shareholders' equity 372 953 (42 077)
Total liabilities and shareholders' equity 1 911 326$ 2 962 830$
Working capital (pre cash at hand) 3 324$ 15 605$
December 31,
The accompanying unaudited, preliminary financial statements have been prepared under Norwegian GAAP. This information could be subject to adjustment, and any such adjustment could be material. This information should be read in conjunction with and is subject to qualifications discussed in the
Press Release “PGS Announces Unaudited, Preliminary Results Under Norwegian GAAP for the 4th Quarter and Full Year 2003.”
P E T R O L E U M G E O - S E R V I C E S
Net Book Value of Library by Year of Completion
0
20
40
60
80
100
120
140
160
1995
1996
1997
1998
1999
2000
2001
2002
2003
In P
roce
ss
Africa Midle-East Europe GoM Brazil Asia
$ million
P E T R O L E U M G E O - S E R V I C E S
Seismic Fleet Activity in Streamer Months (Marine Geophysical)
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Total 03
Standby
Yard
Steaming
Contract
MC
Yard stay and steaming no longer capitalized under MC as a result of new accounting policies.