Operations Petroleum Geo-Services Group
In first quarter of 2009 the company recorded impairments of long-lived assets totaling $50.6 million mainly relating to cancellation of the Arrow NB 532, which the company expects to have a significant positive cash effect in 2009.
Consolidated EBIT was $94.3 million in first quarter of 2009. Excluding impairments of long-lived assets, consolidated EBIT was $144.9 million compared to $237.7 million in first quarter of 2008. The consolidated EBIT for first quarter of 2008 included a gain of $71.6 million from sale of Ramform Victory. Adjusting for that the decrease was $21.3 million, or 13%.
Income before income tax expense in first quarter of 2009 was $79.2 million, compared to $228.9 million in first quarter of 2008.
Operations Marine
Total revenues were $390.8 million in first quarter of 2009, compared to $386.4 million in first quarter of 2008. Contract revenues increased from $267.4 million in first quarter of 2008 to $319.3 million in first quarter of 2009, reflecting better operational efficiency, a larger fleet and more 3D capacity allocated to contract work. The company used 77% of its total 3D capacity to acquire marine contract seismic in first quarter of 2009, compared to 69% in first quarter of 2008. The vessel statistics for first quarter of 2009 includes Ramform Sovereign (vessel commenced operation late March 2008). Vessel steaming and yard time made up 9% and 5% respectively of total 3D capacity in first quarter of 2009 compared to 9% and 0% respectively in first quarter of 2008. The EBIT margin on marine contract acquisition work was around 53% in first quarter of 2009, up from 48% in fourth quarter of 2008 and 51% in first quarter of 2008.
Total multiclient revenues (pre-funding and late sales revenues combined) were $46.2 million in first quarter of 2009, compared to $79.7 million in first quarter of 2008. In first quarter of 2009, 9% of total 3D capacity was used for multiclient acquisition, compared to 22% in first quarter of 2008.
multiclient pre-funding revenues were $23.5 in first quarter of 2009 compared to $41 million in first quarter of 2008. The decrease is primarily driven by less 3D capacity used for multiclient in first quarter of 2009, causing pre-funding to be lower in Europe and in the Gulf of Mexico, partly offset by strong pre-funding in Brazil, compared to first quarter of 2008.
multiclient late sales were $22.7 million in first quarter of 2009, compared to $38.7 million in first quarter of 2008, primarily reflecting lower late sales in Europe, Brazil and Asia Pacific, partially offset by higher late sales in the Gulf of Mexico related to sale of Wide Azimuth data, compared to first quarter of 2008.
Capitalized cash investments in multiclient library, excluding capitalized interest, were $44.8 million in first quarter of 2009, compared to $58.1 million in first quarter of 2008. Lower capitalized cash investments are due to a reduction in capacity used to acquire 3D multiclient data. Pre-funding revenues were 52% of multiclient cash investments, excluding capitalized interest in first quarter of 2009, compared to 71% in first quarter of 2008, primarily reflecting the nature of specific project business models which are weighted to higher levels of late sales. The company has strong pre-funding on planned multiclient projects in the remaining quarters of the year.
External data processing (DP) revenues were $20.6 million in first quarter of 2009, compared to $24.7 million in first quarter of 2008. The strong revenue in first quarter of 2008 was partly due to one large project. Excluding this project the revenue growth from first quarter of 2008 to first quarter of 2009 would be around 11%.
Operations Onshore
Total revenues were $34.3 million in first quarter of 2009, compared to $68.7 million in first quarter of 2008. Contract revenues were $33.5 million in first quarter of 2009, compared to $51 million in first quarter of 2008. The decrease is primarily driven by lower activity levels in North America, including multiclient, and in North Africa.
Total multiclient revenues were $0.8 million in first quarter of 2009, compared to $17.7 million in first quarter of 2008 reflecting reduced multiclient activity. Capitalized cash investments in multiclient library, excluding capitalized interest, totaled $2.2 million in first quarter of 2009 compared to $22.9 million in first quarter of 2008.
Onshore reported an EBIT loss of $10.5 million in first quarter of 2009, compared to an EBIT gain of $3.9 million in first quarter of 2008. The decrease in EBIT is primarily attributable to a decrease in market activity in North America and North Africa, coupled with ramp up for new projects in Latin America.
The order book was $188 million at March 31, 2009 compared to $122 million at March 31, 2008 and $194 million at December 31, 2008.
