PGS (Sell, TP: NOK3.50) - Contract momentum continues
The Q4 update included stronger than expected contract revenues, prompting us to raise our 2023e contract utilisation and vessel dayrate. However, MultiClient late-sales were broadly as expected (up only 14% YOY). We believe the investment case is intact – while the seismic contract market continues to improve, we expect MultiClient performance in 2023 to be muted YOY, and hence FCF generation to be insufficient to cover the 2023–2024e debt amortisation. We reiterate our SELL, but have raised our target price to NOK3.5 (3) on higher estimates.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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