PGS has seen red in the third quarter of 2020 as revenues fell close to 70 per cent.
The Oslo-listed seismic player reported quarterly loss of $32.6 million, or 8 cents per share on revenues of $85 million.
This result compares against profit of $31.5 million, or 9 cents per share on 276.5 million revenues in the prior-year quarter.
For the first nine months of 2020 PGS recognised loss of $261.3 million, compared to $82.6 million in the nine months of 2019.
Revenues were also down from $598 million in 2019 to $304.3 million in the the first three quarter of 2020.
PGS secured order book of $160 million, down more than half from $336 million compared to Q3 2019.
Based on current operational projections, with five 3D vessels operated for the remaining part of 2020, PGS expects full year 2020 gross cash costs to be below $450 million, excluding severance and other restructuring costs of approximately $35 million.
2020 MultiClient cash investments should be approximately $225 million.
Approximately 65 per cent of 2020 active 3D vessel time is currently expected to be allocated to MultiClient acquisition.
Capital expenditure for 2020 should be below $40 million.
Deal with majority of lenders
PGS has also signed binding agreements with majority of lenders to defer debt maturities and amortization by approximately two years.
Rune Olav Pedersen, president and CEO, said:
“I am pleased that we have now signed up with a sufficient majority of lenders and will proceed to swiftly implement the agreement on a consensual basis if we achieve 100% support from lenders.
“Alternatively the solution will be implemented by using a UK scheme of arrangement, for which we have support from the required super majority of lenders. No debt maturities and no scheduled debt amortization until September 2022, together with our substantial cost reductions, will improve our liquidity profile significantly and enable us to maneuver through these challenging times. “