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1. Company Snapshot

1.a. Company Description

PGS ASA, together with its subsidiaries, operates as a marine geophysical company primarily in Norway.The company provides a range of seismic and reservoir services, including data acquisition, imaging, interpretation, and field evaluation to oil and gas companies.It also operates in the Asia Pacific, Canada, Egypt, the Americas, Angola, the United Kingdom, Ukraine, Brazil, South Africa, other African countries, the Middle East, and internationally.


The company was formerly known as Petroleum Geo-Services ASA and changed its name to PGS ASA in May 2019.PGS ASA was founded in 1991 and is headquartered in Oslo, Norway.

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1.b. Last Insights on PGS

PGS ASA's 12.0% performance over the past three months can be attributed to the company's strong financial results, driven by a 55.2% increase in Revenues and Other Income to $217.2 million in Q1 2024, compared to $143.1 million in Q1 2023. The company's Produced Revenues also increased by 29.6% to $222.6 million, and its Produced EBITDA rose by 57.1% to $112.5 million. Additionally, the company's collaboration with Onward, an Austin-based energy innovation platform, has enhanced its seismic data interpretation capability, providing a competitive edge in the market.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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TGS and PGS – Last Day of Trading in PGS Shares

Jul -01

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PGS ASA: Settlement of Long-term Incentive Plans

Jun -28

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TGS and PGS - key dates for completion of merger

Jun -20

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PGS and TGS receive final competition clearance - merger conditions satisfied

Jun -11

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PGS Gets Green Light for Petrobras 4D Contract

May -30

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PGS Introduces New Seismic Data Interpretation Services

May -21

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PGS Contract Award in West Africa

May -10

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PGS ASA: First Quarter 2024 Results

May -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.54%)

6. Segments

Contract Seismic

Expected Growth: 2.5%

PGS ASA's Contract Seismic segment growth of 2.5% is driven by increasing exploration activities, rising oil prices, and growing demand for seismic data in emerging markets. Additionally, advancements in seismic technology, improved data analytics, and strategic partnerships contribute to the segment's growth.

MultiClient Pre-funding

Expected Growth: 2.8%

PGS ASA's MultiClient pre-funding growth of 2.8% is driven by increased exploration activities, rising oil prices, and growing demand for seismic data. Additionally, PGS ASA's strategic partnerships, expanded product offerings, and improved operational efficiency also contribute to this growth.

MultiClient Late Sales

Expected Growth: 2.2%

PGS ASA's MultiClient Late Sales growth of 2.2% is driven by increased exploration activities, higher oil prices, and a growing demand for seismic data. Additionally, the company's strategic focus on high-potential areas, improved operational efficiency, and enhanced data quality also contribute to this growth.

Imaging

Expected Growth: 3.5%

PGS ASA's 3.5% growth in Imaging is driven by increasing demand for seismic services in the energy sector, fueled by rising oil prices and exploration activities. Additionally, the company's investments in digitalization and technology advancements have improved operational efficiency, leading to higher margins and profitability.

Other

Expected Growth: 2.0%

PGS ASA's 2.0% growth is driven by increasing demand for seismic services, particularly in the Asia-Pacific region, coupled with the company's strategic expansion into new markets, such as offshore wind and carbon capture storage. Additionally, PGS ASA's cost-cutting initiatives and improved operational efficiency have contributed to its growth.

7. Detailed Products

Seismic Data Acquisition

PGS ASA provides seismic data acquisition services, which involve the collection of seismic data onshore and offshore to help oil and gas companies explore and produce hydrocarbons.

Seismic Data Processing

PGS ASA offers seismic data processing services, which involve the processing and analysis of seismic data to create detailed images of the subsurface.

Seismic Data Imaging

PGS ASA provides seismic data imaging services, which involve the creation of detailed images of the subsurface using advanced algorithms and techniques.

Reservoir Characterization

PGS ASA offers reservoir characterization services, which involve the analysis of seismic and well data to understand the properties of hydrocarbon reservoirs.

Geological and Geophysical Consulting

PGS ASA provides geological and geophysical consulting services, which involve the provision of expert advice and guidance on geological and geophysical matters.

8. PGS ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PGS ASA is moderate due to the availability of alternative seismic data providers.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of PGS ASA's services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of seismic equipment and services, but PGS ASA's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the seismic data acquisition industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the seismic data acquisition industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.28%
Debt Cost 5.00%
Equity Weight 38.72%
Equity Cost 12.65%
WACC 7.96%
Leverage 158.29%

11. Quality Control: PGS ASA passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Schoeller-Bleckmann Oilfield Equipment

A-Score: 5.6/10

Value: 7.6

Growth: 5.4

Quality: 5.0

Yield: 6.9

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
TGS

A-Score: 4.5/10

Value: 6.8

Growth: 4.3

Quality: 3.9

Yield: 8.8

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Gulf Marine Services

A-Score: 4.2/10

Value: 8.8

Growth: 3.1

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Edda Wind

A-Score: 3.7/10

Value: 6.0

Growth: 3.1

Quality: 2.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CGG

A-Score: 3.5/10

Value: 9.2

Growth: 4.4

Quality: 2.3

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
PGS

A-Score: 2.7/10

Value: 8.2

Growth: 2.1

Quality: 1.6

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.02$

Current Price

9.02$

Potential

-0.00%

Expected Cash-Flows