PGS has seen its Q1 2020 loss widened, totally on impairments associated to library and sale of non-current property.
The Oslo-listed seismic participant reported quarterly lack of $117.5 million, or 32 cents per share on revenues of near $129 million, towards lack of $65 million, or 19 cents per share on virtually comparatively flat revenues within the prior-year quarter.
The firm booked impairment and loss on sale of non-current property and MC library of some $95 million.
PGS secured order e book of $217 million, down from $238 million in comparison with Q1 2019.
Rune Olav Pedersen, president and CEO of PGS, stated:
“The low oil value has led power firms to reduce close to time period funding plans considerably, and 2020 shall be very difficult for the seismic business.
“We are adjusting our vessel capability to the decrease demand by cold-stacking two vessels now in Q2, and we anticipate to warmstack one further vessel in Q3.
“Going ahead, additional capability reductions shall be repeatedly evaluated, and we’re ready to react shortly.”
Cost-cutting and steering adjustment
PGS expects vital discount in demand for seismic companies in 2020, and certain into 2021.
In addition to the vessel changes, PGS will momentary lay-off employees, cancel 2020 bonus plans, provoke wage freeze and likewise launch different price initiatives.
PGS beforehand stated it expects full 12 months 2020 gross money prices to be roughly $600 million.
However, it has now lowered that steering by at the very least $100 million, with additional measures considered.
The firm now estimated 2020 multi-client money investments to be $150-200 million.
Capex for 2020 ought to drop from $80 million to at the very least $50 million.
Also, roughly 50 per cent of 2020 lively 3D vessel time ought to allocate to multi-client acquisition.
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