PGS (Hold, TP: NOK10.00) - Signs of fading late sales
We consider the Q3 results mixed, with soft late sales and weak Q4 vessel utilisation guidance slightly offset by lower-than-expected costs. As seismic peers show signs of recovery in late sales following a slow start to the year, we are concerned the historically low delivery from PGS implies structural issues may hit future MultiClient late sales. We expect the seasonally strong Q4 to shed more light on the underlying health of PGS’s library and estimates. We have cut our 2023e EBITDA by 14% on weak Q3 revenues, and reduced our vessel revenues on lower utilisation in Q4e. We reiterate our HOLD, but have cut our target price to NOK10 (10.5).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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