PGS (Hold, TP: NOK8.20) - Downside risk to vessel utilisation
As two out of PGS’s seven 3D vessels remained idle for most of Q1, we see meaningful downside risk to consensus contract revenues for the quarter and 2024e (our Q1e revenue is 7% below consensus on 20% lower contract revenues). We believe consensus is factoring in too-high vessel utilisation going forward and likely a meaningful YOY increase despite Q1 vessel utilisation starting the year 5%-points lower YOY. We reiterate our HOLD, but have increased our target price to NOK8.2 (6.5), reflecting the TGS merger exchange ratio.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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