A forgettable quarter
Q1 was a setback for our seismic coverage, hit by significantly weaker than expected late sales. The companies have said that the macro noise and related oil price drop in March were the key reasons for the weak quarter. Nevertheless, we believe it is a reminder that seismic spending is discretionary and the YOY slump could raise questions about E&Ps’ urgency to acquire seismic data. We remain positive on TGS, which is still trading at attractive multiples, while for PGS we continue to find the valuation challenging and believe there could be questions about its liquidity runway.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.
TGS Nopec Geophysical provides geoscience data to oil and gas exploration and production companies worldwide. In addition to global geophysical and geological data libraries that include seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, Co. also provides advanced processing and imaging services, interpretation products, permanent reservoir monitoring and data integration solutions.
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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