Petroleum Geo-Services Announces 2001 Fourth Quarter and Year End Results

Financial Highlights
· Net income for the year ended December 31, 2001 is $4.5 million, compared to a ($211.5) million net loss for the year ended December 31, 2000; net loss for the 2001 fourth quarter is ($104.9) million, compared to ($200.3) million for the 2000 fourth quarter

· Fourth quarter revenue increases by 42% over the 2000 fourth quarter - at approximately $299 million, fourth quarter revenue is the highest in PGS' history

· Revenue for the year ended December 31, 2001 increases by 15% over the prior year and surpasses $1 billion for the first time in PGS' history

· Fourth quarter Geophysical Operations revenue increases by 53% over the 2000 fourth quarter and is supported by a substantial backlog level

· Fourth quarter Production Operations revenue increases by 30% over the 2000 fourth quarter and by 9% over the 2001 third quarter - all FPSOs are in operation and collectively producing strong net cash flow

· Fourth quarter operating profit (before unusual items and forced amortization) increases by 63% over the 2000 fourth quarter; comparable operating profit margin for the 2001 fourth quarter is 13%, up from 11% for the 2000 fourth quarter

· Operating profit (before unusual items and forced amortization) for the year ended December 31, 2001 increases by 2% over comparable 2000 operating profit, despite a significant increase in the ordinary multi-client amortization rate and longer periods of production downtime due to FPSO upgrades

· PGS generates sufficient free cash flow from fourth quarter operations to cover its multi-client investment and capital spending - achieving a key management objective

· PGS is negotiating a $250 million back-up loan facility, with net proceeds intended for (i) repayment of $225 million in senior notes due in March 2002 and (ii) general corporate purposes

Operating Highlights
· PGS is awarded $33 million in four-component seismic acquisition contracts offshore Nigeria, in the Norwegian sector of the North Sea and in the North Atlantic's West of Shetlands area - the contracts cover a mix of undeveloped and producing areas

· PGS secures $33 million in highly pre-funded multi-client work offshore Brazil - the work will cover nearly 4,500 square kilometers in the Campos and Espirito Santos basins and utilize PGS' patented continuous long offset (CLO) technology

· PGS is awarded $58 million in onshore and transition zone contracts in the United States, Ecuador, India and Bangladesh

· PGS enters into a data processing technology alliance with BP covering advanced seismic processing techniques for land, marine and ocean bottom seismic data in Egypt, North Africa and the Middle East

· Reserve estimates on the Foinaven field are significantly upgraded - the Foinaven contract is expected to extend for at least 10 more years

· PGS reaches definitive agreement with China National Chemicals Import and Export Corporation (Sinochem) for the sale of Atlantis - sales proceeds should approximate $185 million plus certain qualifying capital expenditures incurred during 2002, with Sinochem to assume $20.5 million of short-term debt

Restatement and Accounting Adjustments

· PGS announces in mid February 2002 restatement of results of operations for fiscal years 2000, 1999 and 1998 and announces additional restatements for matters related to fiscal year 2000 - see detailed discussion below

· PGS revises its fiscal 2001 accounts by quarter (including the fourth quarter) to properly reflect certain effects of the above-mentioned restatements as well as adjustments generated in the year-end financial statement preparation process - see detailed discussion below

- FINANCIAL TABLES TO FOLLOW -
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