PGS net profit beats forecast
Norwegian seismic survey outfit Petroleum Geo-Services has seen its second quarter net profit beat expectations.
The company posted net profit of $41 million, down sharply from the $98 million it booked in the same quarter last year, but ahead of an expected $22 million.
Earnings per share were also higher than expectations, coming in at $0.22 against analysts' forecasts of $0.11. In last year's second quarter, earnings per share were $0.55.
The company's revenues, however, came in below forecast at $341 million. A Reuters poll had pegged revenues at $270 million. In the year-earlier period, PGS booked operating revenues of $465 million.
Pre-tax profit rose slightly above the expected $42 million to come in at $43 million. In the second quarter of 2008, PGS booked pre-tax profits of $136 million.
Operating profit was also below forecast, sliding to $34 million from the year earlier's $144 million. Analysts had expected $55 million.
PGS said it maintained its guidance for the full year, including earnings before interest, taxation, depreciation and amortisation (EBITDA) of between $700 million and $800 million, with capital expenditure guidance slightly reduced to between $300 million and $350 million from $350 million three months ago.
"I am more optimistic this time than I was a quarter ago," PGS boss Jon Erik Reinhardsen told Reuters.
"This is not so much driven by the general market as our relative position in this market and the strength of our fleet."
In the company's results statement Reinhardsen said: "June was the first month in three consecutive quarters to see an improved order book.
"Still, we need to see further reduction in global streamer capacity to balance the market demand," he added.
