PGS expects to report Revenues and Other Income As Reported (1) according to IFRS for Q4 2021 of approximately $210 million, compared to $207.7 million in Q4 2020.

Segment(1) Revenues and Other Income for Q4 2021 are expected to be approximately $174 million, compared to $172.8 million in Q4 2020.

Contract revenues ended at approximately $64 million ($20.8 million in Q4 2020). Segment MultiClient pre-funding revenues were approximately $24 million ($61.0 million in Q4 2020), and MultiClient late sales revenues approximately $81 million ($70.1 million in Q4 2020).

The difference between As Reported revenues and Segment revenues relates to MultiClient pre-funding where the As Reported MultiClient pre-funding revenues for Q4 2021 are expected to be approximately $60 million ($95.9 million in Q4 2020).

"The winter season has become more challenging than expected. Our Q4 vessel utilization was disappointing with approximately two idlevessels, negatively impacting our seismic acquisition revenues.MultiClient late sales in Q4shows a strong seasonal uptick,but  ended  somewhat below our expectations.We believe that the MultiClientmarket is gradually improving, but it is still characterized by cautious spending and deferral of purchases by energy companies," says President & CEO Rune Olav Pedersen.

The Q4 2021 vessel statistics includes six active 3D vessels. All cold-stacked(2) vessels are excluded from the statistics. The comparative period Q4 2020 is based on five vessels, while Q3 2021 is based on six vessels.

The Company provides this information based on a preliminary summary of Q4 2021 revenues. 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 2021 financial statements finally approved and released by the Company may deviate from the information herein.

(1) For the purpose of Segment reporting, MultiClient prefunding revenues are recognized on a percentage of completion ("POC") basis, and the related amortization of MultiClient library is based upon the ratio of aggregate capitalized survey costs to forecasted sales. 

(2) The term "cold-stacked" is used when a vessel is taken out of operation for an extended period of time. Costs are reduced to a minimum, with the vessel preserved for a long idle time, all or most in-sea seismic equipment removed from the vessel, and typically the Company does not have available crew to operate the vessel.

KeyFacts Energy Industry Directory: PGS