PGS (Hold, TP: NOK10.00) - Risk tilted to the downside ahead of Q4 revenue update
We forecast Q4 Produced revenues of USD202m, 4% below Bloomberg consensus, with the main deviation appearing to be related to contract revenues, for which we are USD8m below consensus. As warned by the company, we expect vessel utilisation to be soft at 55% (versus the 50–60% guidance), with a slight overweight towards MultiClient. We expect USD80m in late-sales, broadly in line with consensus of USD78m, or a 13–15% YOY decline but less than the ~30% YOY underlying late-sales decline YTD. The seasonal effect implies c2.3x higher late-sales than the Q1–Q3 average, compared to 1.7–2.2x in 2020–2022. Thus, we believe the risk is tilted towards the downside.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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