MW: Petroleum Geo-Services cuts guidance as net falls
By Dominic Chopping
Norway's Petroleum Geo-Services ASA (PGS.OS), which uses seismic technology to map oil and gas reservoirs beneath the sea bed, Thursday cut its full-year guidance after posting a drop in second quarter net profit to NOK29.7 million, from NOK71.5 million last year.
Earnings before interest and and tax fell to NOK46.2 million from NOK110.6 million on revenue of NOK337 million, down from NOK381.7 million in the same period last year.
The company said that less predictable customer spending and current low bidding activity indicate risk of a weaker market towards the end of the year. Accordingly, it has lowered its full-year Ebitda guidance to approximately $850 million, from $900 million-$950 million.
MultiClient cash investments are expected to be approximately $350 million, with a pre-funding level of approximately 100% of capitalized cash investment.
Capital expenditures are estimated to be approximately $425 million, of which $275 million are related to the new build program.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics
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