Another Norwegian Seismic Survey Firm Warns of Profit

Norwegian seismic surveyor Petroleum Geo-Services will report lower-than-expected second quarter results and is cutting its full year profit forecast due to oil companies being cautious with spending, the company said on Monday.

Seismic firms, which map out the seabed in search of oil and gas deposits for oil firms, and other suppliers to the oil industry have been hit in recent months by energy firms cutting back after a decade of double-digit growth in capital spending.

"Customers's intentions with regard to seismic purchases, particularly Multiclient, have become less predictable recently," the Norwegian firm said in a statement. Multiclient surveys, as opposed to tailor-made surveys for an oil company, are maps of the seabed a seismic surveyor conducts of an area and which can then be bought by several customers.

Oil companies were not putting enough funding into a multiclient survey in the Gulf of Mexico, PGS said.
There were also problems with delays with some contracts due to problems with permits, weather and technical problems, it said.

PGS's earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2014 would be around $850 million instead of the $900-$950 million it expected earlier, it said.

Its EBITDA for the second quarter is estimated at $170 million, against expectations for $223 million according to Reuters Eikon data.

PGS earnings before interest and taxes (EBIT) before impairments of around $55 million. It also expects an impairment charge of $10 million related to the retirement of vessel and equipment.

PGS will report its full second-quarter results on July 24.

(By Gwladys Fouche)