UPDATE 1-PGS seeing more activity, affirms 2010 goals

Mon Feb 22, 2010 7:44am GMT



* Q4 EBITDA falls 49 pct to $146 mln, tops consensus

* Reaffirms 2010 financial targets, sees some H2 risks

(Adds details, quotes)

OSLO, Feb 22 (Reuters) - Norwegian seismic surveyor Petroleum Geo-Services (PGS.OL) posted roughly in-line fourth quarter results on Monday and said it saw increasing bid activity for what is set to be a tough 2010.

PGS, which helps oil companies to find oil and gas reserves by scanning the seabed, maintained its guidance for 2010 which called for a drop in adjusted core profit (EBITDA) to around $450 million from some $691 million in 2009.

Adjusted earnings before interest, tax, depreciation and amortisation fell to $146 million in October-December from $241 million a year earlier, but beat a $130 million average forecast from a Reuters poll of 15 analysts. PGS's net earnings and operating profit fell short of consensus.

"We currently see increased interest in pre-funding commitments in the Gulf of Mexico and Europe, and an increase in bid activity," Chief Executive Jon Erik Reinhardsen said in a statement.

PGS repeated views that its 2010 capex and 2010 multi-client cash investments both stood at some $175 million.

"The primary risks relating to the full year guidance are contract market demand in second half of the year, operational downtime events and multi-client sales," PGS said.

"The guidance could also be impacted if the company makes significant changes to investment plans," it added, without providing any details. (Reporting by Wojciech Moskwa; Editing by Rupert Winchester)