Hi
Just wanted to post about a norwegian company on the norwegian stock exchange. It is so cheap right now, I’m just.. at a loss for words.
PGS struggled alot the recent years prior to 2022 due to low investments in the seismic market and a huge debt. But things have really turned around.
Their debt has gone from 1100m usd to around 500m usd now. They have THE best fleet in the world for what they are doing, and they are PRINTING money atm.
They bought 4 specialdesigned vessels for approx 250m usd each in 2014, 2015, 2016 and 2017 iirc, the amount of vessels in the market worldwide for this is a total of 20ish.
If you compare this to the amount of vessels back in 2014 when the seismic market was at an all time high, there was around a 100 vessels worldwide. So there are simply too few vessels now, which means insane increase in dayrates for each vessel.
The two main seismic companies in the world are PGS ASA and Shearwater. Shearwater has almost the same amount of vessels but older / less effective.
Shearwater is set to enter the norwegian stock exchange this year, and is rumored to be priced at around 2000m usd.
PGS ASA is currently worth around 500m usd, yet not long ago they submitted estimated prices on ships, multiclient library and contracts. Which all added up to around 2500m usd.
From the Q1 report webcast, they said they only needed to earn 80m usd to pay clear all other debts than the most recent 450m usd loan (they refinanced to get better rates a few months ago). They earned 120m usd the past 12 months, with only a 5/9 vessel usage.
They also stated they want to keep a debt of around 400-500m usd, and start paying back the stockholders or start a buyback program.
PGS ASA is currently valued around 500m usd, and the people who own ALOT of stocks in Shearwater are also buying up stocks in PGS. So I think it’s pretty safe to say the stock will skyrocket very soon.
So how did they get their debt down from ~1100m usd to around 500m usd? -they increased the amount of stocks from around 400mill to now 909mill stocks over the last year, and started earning alot more as rates went higher and fleet became more active.
Afaik now 8/9 vessels are active, one just lost a contract, but there will be plenty of work for this last one. And they are ofc negotiating cancellation fees.
They also refinanced 450m usd of debt into a loan with ~14 or 15% interest rates, which can again be refinanced for better rates after 2 years.
Anyone else have information regarding PGS?
[link] [comments] https://www.reddit.com/r/stocks/comments/14clra3/petroleum_geo_services_pgs_asa_due_dilligence/
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