Norwegian seismic player, Petroleum Geo-Services (PGS), reported a net loss for the fourth quarter of 2016 of $156.1 million versus $334.6 million in the prior year.
The company’s net loss before tax for Q4 2016 was $118.7 million, compared to $357.1 million in the fourth quarter of 2015.
PGS also recorded a lower revenue of $154.1 million for the Q4 2016, compared to $229.3 million in the Q4 2015. This reflects a 33% reduction in marine contract revenues and a 38% reduction in total multi-client revenues.
“As a result of low activity levels and continued excess supply of vessels, the marine contract market remained challenging through 2016. To improve cash flow we have continued our efforts to reduce costs. Gross cash cost for the full year 2016 ended at $662.3 million, down $130.8 million compared to 2015, and more than 40% lower than our gross cash cost in 2014,” said Jon Erik Reinhardsen, president and CEO.
Multi-client pre-funding revenues decreased $47.1 million in Q4 2016, or 48%, compared to Q4 2015, owing to less capacity used for multi-client surveys and weaker sales from surveys in the processing phase. Multi-client pre-funding revenues in Q4 2016 were strongest in Asia Pacific and Europe.
The company recorded impairment charges, excluding impairment of multi-client library, of $12.0 million for the full year 2016 and $7.8 million in Q4 2016, primarily relating to adjustments to the expected schedule for returning cold-stacked vessels to operation.
PGS expects the volume of marine 3D seismic acquired by the industry to increase in 2017 compared to 2016, partly driven by an expected increase of 4D streamer monitoring surveys and more multi-client 3D projects.