Petroleum Geo-Services (Hold, TP: NOK19.00) - Pricing in an earnings recovery
We forecast Q1 revenues of USD178m, in line with consensus. We estimate utilisation in Q1 (due first week of April) at 81%, on high multi-client allocation. Our base-case scenario is that the company will be able to refinance in the debt market; however, at a P/NAV of 1.1x we believe this is reflected in the current share price. While the market is showing improvement, the share price implies a strong earnings recovery; we maintain our HOLD recommendation but have raised our target price to NOK19 (17).Petroleum Geo-Services is engaged in providing geophysical services and oil and gas production services. As of Dec. 31, 2001, Co. operated six Ramform design vessels in its marine seismic data acquisition operations.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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