PGS ASA: Approval of 2021 annual financial statements and update on financing status

March 8, 2022: Oslo, Norway, the board of directors of PGS ASA (“PGS” or the “Company”) has approved the 2021 annual financial statements and annual report.

There are no material changes to the financial statements compared to the preliminary and unaudited full year results presented by the Company on January 27, 2022. The 2021 audit opinion from the Company’s auditor EY is without qualifications. However, the audit opinion includes an emphasis of matter related to material uncertainty pertaining to the going concern assumption.

As reported by the Company on January 27, 2022, the seismic market recovery in 2021 has been slower than assumed in the debt rescheduling business plan from 2020. As a result, there is a risk that the Company will not generate sufficient liquidity to repay the 2022 maturities whilst also meeting the other requirements of the main credit agreements, including the Minimum Consolidated Liquidity covenant. The Company’s view on this challenge has not materially changed. The Company has started preparations for assessing alternative ways to address upcoming debt maturities, including engaging advisors to assist the Company in this respect.

On January 27, 2022 the Company also announced that there was a risk that the required Maximum Total Net Leverage Ratio covenant in the main credit agreements will not be met in Q1 2022 when the Maximum Total Net Leverage Ratio on March 31, 2022, steps down from 4.25:1 to 3.25:1. The Company’s assessment of this risk has now changed, and the Company currently believes that the risk of not meeting the Total Net Leverage Ratio covenant in Q1 2022 is lower.

For further details regarding the going concern assumption, please refer to the 2021 annual report which will be published later in March, 2022.

PGS ASA and its subsidiaries (“PGS” or “the Company”) is an integrated marine geophysics company, which operates world-wide. The Company supports the energy industry, including oil and gas, offshore renewables and carbon storage. PGS’ headquarters is in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE: PGS). For more information about PGS visit www.pgs.com.

The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our multi-client data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2020. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about the current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and PGS disclaims any and all liability in this respect.

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