(Updates with additional detail)
OSLO (Thomson Financial) - Petroleum Geo-Services said it expects a continued strengthening of the seismic market to contribute to a 40 pct year-on-year jump in 2008 marine revenues, with margins rising to 55 pct from this year's range of 50-55 pct.
The Norwegian seismic company provided the bullish comments at its annual capital markets day, being held in Oslo today.
Chief executive Svein Rennemo said he expects 2008 to be another strong year for PGS, 'reflecting continued buoyancy in global seismic markets and growing impact from our increased spending on technology'.
'Our acquisitions this year within electromagnetics, data processing and high-end fleet capacity through Arrow Seismic, will further enhance our efficiency and technology lead going forward,' he said.
For the marine segment, PGS said that in 2008 it expects to utilise 25 pct of its time on multi-client surveys, with the remaining 75 pct of capacity focused on contract seismic.
'Both multi-client late sales and multi-client investments are expected to be higher than in 2007,' it said.
For the smaller onshore segment, PGS said it expects both revenues and operating profits to be approximately in line with 2007. alastair.reed@thomson.com ar/vlb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
