New course? for PGS
PGS eyes sales as it slashes capex
Norwegian seismic player Petroleum Geo-Services (PGS) today cut its capital expenditure for the year from $400 million to $350 million, adding it was looking into oppportunities to sell assets and adjust its capacity.
PGS added that sales of stacking vessel may expose it to impairment charges.
The company also slashed its outlook for earnings before interest, taxation, depreciation and amortisation to $700 million to $800 million from its previous forecast of $800 million to $900 million.
However, it said it was sticking to its $200 million investment target for multi-client work.
Meanwhile, the company a smaller than expected fall in first-quarter operating profit.
Earnings before interest and tax fell to $94 million in the January-March quarter from $238 million a year ago, beating an average forecast of $78 million in a Reuters poll of 13 analysts.
"The competitive advantages of our modern, state-of-the-art and cost efficient fleet put us in a good position to generate healthy cash flows even as the market turns weaker towards the second half of the year," chief executive Jon Erik Reinhardsen said in a statement.
