Petroleum Geo-Services ASA
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Petroleum Geo-Services ASA Financial Snapshot
Operating Performance
Fast Facts
The company reported revenue of US$1,135.13
Headquarters Address Strandveien 4, Lysaker, 1326,Norway
million during the fiscal year 2010 (2010). The
company's revenue declined at a compounded rate of
Telephone + 47 67 526400
3.49% during 2006–2010, with an annual decline of
15.93% over 2009. In 2010, the company recorded an
Fax + 47 67 526464 operating margin of 4.53%, as against 17.28% in
2009.
Website www.pgs.com
Ticker Symbol, Stock Exchange PGS, Oslo Stock Exchange Revenue and Margins
Number of Employees 2,090
Fiscal Year End December
Revenue (in US$ million) 1,135.13
SWOT Analysis
Strengths Weaknesses
Return on Equity
Intellectual property Weak financial performances
The company recorded a return on equity (ROE) of -
0.80% for the fiscal year 2010, as compared to its
Market leading position peers, CGGVeritas (Ticker: GA), ION Geophysical
Corporation (Ticker: IO) and SeaBird Exploration
Wide global presence Limited (Ticker: SBX), which recorded ROEs of -
1.94%, -9.68% and -42.08% respectively.
Furthermore, the company reported an operating
Opportunities Threats
margin of 4.53% in 2010.
Roll-out of GeoStreamer technology Currency fluctuations
Return on Equity
Strategic partnership Increasing manpower costs
Strong outlook for the Caspian market Natural calamities
Liquidity Position
The company reported a current ratio of 2.36 in 2010,
as compared to its peers, CGGVeritas, ION
Geophysical Corporation and SeaBird Exploration
Limited, which recorded current ratios of 1.95, 2.34
and 0.60 respectively. As of December 2010, the
company recorded cash and short-term investments
of worth US$432.58 million, against zero current debt.
The company reported a debt to equity ratio of 0.45 in
2010 as compared to its peers, CGGVeritas, ION
Geophysical Corporation and SeaBird Exploration
Limited, which recorded debt to equity ratios of 0.52,
0.29 and 1.30 respectively.
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Petroleum Geo-Services ASA - SWOT Profile Page 1
Petroleum Geo-Services ASA
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Solvency ..........................................................................................................................................................14
2.2.5 Valuation ..........................................................................................................................................................15
2.3 Competitive Benchmarking ..................................................................................................................................16
2.3.1 Efficiency ..........................................................................................................................................................17
2.3.2 Capital Expenditure ..........................................................................................................................................18
2.3.3 Turnover – Inventory and Asset .......................................................................................................................19
2.3.4 Liquidity ............................................................................................................................................................20
3 Mergers & Acquisitions and Partnerships ........................................................................................... 21
3.1 M&A and Partnerships Strategy ...........................................................................................................................21
4 SWOT Analysis ...................................................................................................................................... 25
4.1 SWOT Analysis