Petroleum Geo-Services (Sell, TP: NOK18.00) - Hopes of dayrate increase to fade
PGS missed Q2 expectations with late sales down 11% YOY. We have made limited estimate revisions and see ample downside risk for Q3 and 2019e consensus. In our view, hopes of strong dayrate improvement are too high, with the company still planning to take out two vessels in the winter and with the return of the Schlumberger vessels in 2019e. SELL maintained, target price raised to NOK18 (17) on FX.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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