PGS slides after contract termination

PGS ASA

12/06/2023 09:07

** Shares in PGS  PGS.OL  fall 10% after its client decided
to terminate a planned 3D contract seismic survey for Ramform
Titan in South America 
    ** PGS said the company and the client are now working on
alternative employment in other regions, while the vessel could
remain idle for up to 2-3 months
        ** "We understand that this (termination) is due to the
client not being able to secure permitting," Carnegie analyst
Erik Aspen Fosså says
    ** The analyst adds that if Ramform Titan is not able to
secure any work in late June until August, it would affect
Carnegie's revenue estimate for PGS in 2023 negatively by $20-25
mln, and reduce EBITDA for 2023 by 4-5%
    ** The stock is on track for its worst day in three months
   



 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))