Marine geophysical firm PGS said it expects the low oil price to have a material negative impact on demand for seismic services and activity.
The company is implementing cost and capital expenditure measures to meet an expected significant revenue reduction, with details to be provided in Q1 2020 earnings release.
PGS said it has not received contract cancellations.
However, the company noted that most processes to conclude contract negotiations have since early March been substantially delayed or resulted in postponement of projects.
Meanwhile, PGS has decided to cold-stack two of the eight currently operated 3D vessels early in Q2, after completion of current projects.
“Further capacity adjustments will be evaluated on an ongoing basis,” PGS said
Despite the logistical challenges due to the coronavirus pandemic PGS has, so far, been able to continue vessel operations without interruptions.
The company has cancelled all crew changes since March 18, with all crews continuing on a second full rotation.
The extended crew periods should start coming to an end in the latter part of April, and PGS said it believes it will be able to find viable methods for crew rotations.