Correction: Fitch Changes Petroleum Geo-Services To Outlook Neg.Business Editors In a press release issued Jan. 19, 2001, it was incorrectly stated that Fitch 'placed' Petroleum Geo-Services Petroleum Geo-Services ASA (OSE: PGS, NYSE: PGS), an oilfield service company, provides geophysical services worldwide, and floating production services in the North Sea. ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and on Outlook Negative. The correct press release follows. CHICAGO--(BUSINESS WIRE)--Jan. 22, 2001 Fitch has changed the Rating Outlook on Petroleum Geo-Services ASA (PGO PGO Public Guardianship Office (UK) PGO Ponto-Geniculo Occipital (burst neurons) PGO Project on Government Oversight PGO Pass Grade Only (academics) ) from Stable to Negative. Fitch has affirmed PGO's unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating at `BBB' and affirmed PGO's trust preferred securities at `BB+'. The change in outlook comes following the company's announcement regarding the likelihood of weaker than anticipated earnings for the fourth-quarter 2000. These weaker earnings are a result of continued weak conditions in the marine seismic industry and the reduced revenues from the two FPSO's that were taken off-line during the fourth quarter for service. PGO also announced a one-time non-cash pre-tax charge of approximately $365 million, which is partially offset by a one-time pre-tax gain of approximately $230 million. Fitch anticipates that PGO's cash flow will improve once its Ramform Banff and Petrojarl I FPSO FPSO Floating Production Storage and Off-loading (shipping & oil industry) FPSO Foster Parent Society of Ontario FPSO Fleet Publication Supply Office vessels are back in production under long-term contracts and the marine seismic industry begins to recover. Given these results, total debt to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for 2001 is likely to be weak, ranging only from 3.2 times (x) to 3.9x and the company is likely to generate little internal cash flow for debt reduction. Fitch expects the marine seismic industry to remain slightly weak through the first half of 2001. Fitch also anticipates that oil company spending on marine seismic data will likely rise during the second half of the year. Fitch, as always, will continue to monitor developments within the sector. Continued weakness in the demand for marine seismic data beyond this time period could delay PGO's efforts to reduce the company's debt obligations beyond the level expected from the sale of non-core assets. Petroleum Geo-Services, jointly headquartered in Oslo, Norway, and Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , is a technologically focused oilfield service company primarily involved in the business of acquiring, processing, managing and marketing 3D, 4C and 4D marine seismic data. The company also provides floating production systems, data management solutions, 4D and 4C reservoir monitoring and characterization studies and other specialized geophysical services. |
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