PGS : Sparebank 1 Markets 2022 Energy Conference

Sparebank 1 Markets 2022 Energy Conference

Oslo, March 3, 2022

Cautionary Statement

• This presentation contains forward looking information
• Forward looking information is based on management assumptions and analyses
• Actual experience may differ, and those differences may be material
• Forward looking information is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future
• This presentation must be read in conjunction with other financial disclosures

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Full Year 2021 Takeaways:

Improving Competitive Position in a Gradually Improving Market

▪ Higher revenues compared to 2020 when adjusted for Covid- 19 related government grants

▪ 42% increase in contract revenues

- Overweight of capacity allocated to contract

- Significant rate increase in 2H

- Benefit from more near-field exploration and increasing 4D demand

▪ Mixed development of MultiClient market

- Reduced industry revenues and investments vs. 2020

- Increased market share for PGS with strong late sales growth and adequate pre-funding on reduced MultiClient investment

▪ Established New Energy

- Already generating meaningful CCS MultiClient revenues and contract order book

▪ Winter season more challenging than expected

- Healthy booked position for summer season

▪ Returned to positive net cash flow generation

▪ Slower market recovery than assumed in business plan for the 2020 debt rescheduling

- Will have to address in coming quarters

-3-

2021 Seismic Market Lower Than 2020 - with Positive Contract Development

2500

-6%

▪ The seismic market declined ~6%* in 2021 vs. 2020

2000

1500

USD million

1000

500

0

-2%

5%

-30%

▪ Energy companies are increasingly focusing on near-

field exploration and 4D

▪ PGS increased revenues in 2021 by allocating more

capacity to contract work where rates are improving

- Diversified MultiClient library mostly in mature basins

Total Revenues*

TGS

CGG

PGS**

2020 2021

*Based on major seismic companies with publicly reported numbers. **Excluding government grants.

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Maintaining Attractive MultiClient Business while Growing Contract Segment

	800	MC revenues* during pandemic
	700
million	600
500
USD	400

300

200

100

0

LTM Q2 20	LTM Q3 20	LTM Q4 20	LTM Q1 21	LTM Q2 21	LTM Q3 21	LTM Q4 21
			PGS		TGS		CGG

	70		PGS contract revenues during pandemic	80%
	60									70%
	50									60%
										50%
million	40
									40%
USD	30
									30%
	20									20%
	10									10%
	0										0%
		Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
					Revenues			Contract allocation

*LTM - Total revenues for the last twelve months.

• PGS has the highest MultiClient revenues since Q2 2020 and the lowest investment level
• • Most of the MultiClient library is in mature and producing basins
• Increasing capacity allocation towards the recovering contract market
• • Energy companies focus on near-field exploration and 4D

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