Based on a preliminary review, PGS expects to report Revenues and Other Income according to IFRS for Q4 2022 of approx. $217 million, compared to $210.4 million in Q4 2021. The Company expects Revenues and Other Income on a percentage-of-completion basis ('Produced Revenues') for Q4 2022 of approx. $251 million, compared to $174.3 million in Q4 2021. PGS will in connection with the Q4 2022 financial statements disclose alternative performance measures ('APMs') on a percentage-of-completion basis, including Produced Revenues, to reflect MultiClient value creation.
PGS will measure its revenues on a produced basis for its internal management reporting and consequently this will also be the basis for Segment Reporting in financial statements.
Contract revenues ended at approx. $111 million in Q4 2022, compared to $64.3 million in Q4 2021. MultiClient late sales revenues were approximately $92 million in Q4 2022, compared to $80.9 million in Q4 2021.
MultiClient pre-funding revenues based on IFRS were approximately $9 million in Q4 2022, compared to $60.0 million in Q4 2021. Estimated MultiClient pre-funding measured on percentage-of-completion basis ('Produced Pre-funding Revenues') in Q4 2022 was $43 million compared to $23.9 million in Q4 2021.
'Our Q4 Produced Revenues increased 44% year-over-year and are another confirmation of an improving marine seismic market. MultiClient late sales were strong in the quarter, driving full year 2022 late sales to approximately $327 million, which is the second-best year on record, and almost 50% higher than 2021. Following relocation of most of our vessels early in the quarter, production has been strong. Contract rates continue to improve, and our Q4 contract revenues are the highest since Q4 2014. MultiClient Produced Pre- funding Revenues reflect strong industry support of ongoing projects, as well as good sales from projects where imaging is not yet completed,' says President & CEO Rune Olav Pedersen.
The Q4 2022 vessel statistics includes six active 3D vessels. All cold-stacked**
vessels are excluded from the statistics. The comparative periods are also based
on six active 3D vessels.
The Company provides this information based on a preliminary summary of Q4 2022
numbers. The Company has not completed its financial reporting and related
consolidation, review and control procedures, including the final review of all
sales against the established revenue recognition criteria. The estimates
provided in this release are therefore subject to change and the Q4 2022
financial statements finally approved and released by the Company may deviate
from the information herein.
PGS will publish its Q4 2022 earnings release and capital markets day
presentation on Thursday January 26, 2023 at approximately 07:00am Central
European Time (CET). Presentation of the Q4 2022 results and capital markets day
material is scheduled to start at 09:00am CET the same day.
*From January 1, 2022, PGS changed its Segment Reporting measurement to simplify
external and internal reporting.
PGS will in connection with the Q4 2022 financial statements disclose
alternative performance measures ("APMs") on a percentage-of-completion basis.
PGS will report Produced Revenues, Produced EBITDA and order book relating to
future production. PGS will measure its revenues on a produced basis for its
internal management reporting and consequently this will also be the basis for
Segment Reporting in financial statements. PGS believes that the introduction of
these APMs will improve transparency and provide better information financial
statement users.
The APMs reflect the difference between recognizing MultiClient pre-funding
revenues under IFRS compared to alternatively measuring such revenues on a
percentage-of-completion basis as the project is progressing, which is a non
GAAP measure. IFRS 15 reporting generally recognizes revenue from MultiClient
pre-funding agreements at the "point in time" when the customer receives access
to, or delivery of, the finished data.
