Good start to 2024 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 Q1 2024 o Revenues and Other Income according to IFRS of$218.4 million , compared to$141.5 million in Q1 2023 o Cash flow from operations of$127.3 million , compared to$133.8 million in Q1 2023 o Cash and cash equivalents of$146.2 million , compared to$151.5 million in Q1 2023 o Net interest-bearing debt of$501.5 million , compared to$590.7 million in Q1 2023 o Repaid the Term Loan B and refinanced the Super Senior Loan Petroleum Geo-Services AS and its subsidiaries (the "Company") had a good start for MultiClient late sales in 2024, with progress in Q1 and a strong basket of active opportunities leading into Q2. The Company is well-positioned with a geographically diverse MultiClient library attracting strong client interest. New MultiClient projects were mainly acquired inSouth America and in the Mediterranean. The Company had strong revenues from contract work in Q1 and project profitability was in line with 2023 summer season levels. Utilization improved compared to Q4, but the Company still suffered from standby time, reflecting a muted acquisition market during the winter. The Company was awarded several contracts towards quarter-end and the order book increased sequentially, ending at$375 million . Including recent awards, the Company has booked most of the capacity well into the second half of the year at attractive rates. New Energy, and especially the offshore wind business is progressing well. The Company recorded$13 million of revenues from the ongoing project in the New York Bight. The opportunity basket for more offshore wind site characterization work is encouraging. In September last yearPGS ASA announced the intention to merge withTGS ASA to establish the premier energy data company. InDecember 2023 , shareholders of bothPGS ASA andTGS ASA approved the merger with close to 100% support. The merger has been subject to review by the competition authorities inNorway and theUK .The Norwegian Competition Authority provided their clearance of the merger on17 April 2024 .The Competition & Markets Authority in theUK launched their inquiry in April, and their phase 1 decision is due no later than11 June 2024 . The Company expect the transaction to be cleared and the merger to be completed on or around 1 July. The combined company will be a 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. 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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