up =—iwpvn | p (x0,w)=∫dSn · [g n · •p (x,w;x )] | 0)•p(x x,w;x0 ,w) — ğ( p(x ,w)• ,w) p(x •g — (x, ,w) w;x p(x 0 )] )• | n ;x 0 · ,w • (x p= —ğ —i · [ w n pv S n ∫d | = p ) up ,w (x x 0 n ( 0 ,w w o )= d ∫ p d S | n ] ) · 0 [ ;x g (x ,w , x w ( ; g x 0 ) )• • ,w p x (x ( , p w ) — ) — ,w p x ( ( x , p w • ) ) • 0 x g ; ( x w , , w x ( ; g x [ 0 · ) ] n | S d p ∫ d o = ) w n w , ( x 0 0 x ( , w p u ) = p ∫ | d S n n v p · [ w — i ğ — ( = x p , w • ; · x 0 n ) • | p ] ) ( x 0 , x w ; ) w , — x ( p ğ ( x • , ) w w ) , • x ( ğ p ( x — , Annual Report w ) ; w x , 0 x ( ) ] p | • ) 0 n x ; · • w , p x ( 2014 = ğ — — i [ w · p n v n S d Productivity and Technology Leadership | ∫ = p ) u w p , ( 0 x 0 x ( , w n ) w = o ∫ d p d | S n ] ) · 0 [ x g ; ( x w , , w x ( ; g x 0 • ) ) • w p , x ( ( x , p w — ) ) — w p , x ( ( x , p w • ) ) 0 • x g ; ( x w , , w x ( ; g x 0 [ · ) ] n | S d p ∫ = ) d o w 0 w , ( 0 x n x ( , w ) p p = | u ∫ d n S v n p · w [ i — — ğ = ( x p , w • 0 · ; x n ) | 0 • ] p ) ( x x , ; w w ) , — x ( p ğ ( x • ) , w A Clearer Image | www.pgs.com 2 KEY FIGURES Key Figures Petroleum Geo-Services (PGS) is a focused Marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company’s MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. Financial Calendar 2015 Q1 2015 Earnings Release April 30, 2015 Annual General Meeting May 13, 2015 at 15:00 CET Q2 2015 Earnings Release July 23, 2015 Q3 2015 Earnings Release October 23, 2015 Vessel Utilization 2014 Number of Patents Granted 454 as of year-end 2014 51% Contract 31% MultiClient 12% Steaming 395 as of year-end 2013 5% Yard 1% Stacked/Standby Patents granted under the laws of the US, the UK and Norway Active Vessel Time 2014 Number of Ramform Vessels 1 2 3 4 5 6 7 8 9 62% Marine Contract as of year-end 2014 38% MultiClient 1 2 3 4 5 6 7 8 as of year-end 2013 ANNUAL REPORT 2014 3 KEY FIGURES Business Highlights 2014 Revenue Split Operating profit in 2014 In September, the Company decreased from the previous decided to stack the two year. low-end vessels Pacific Explorer and Nordic Explorer. Despite challenging market 48% Contract conditions the Company The Atlantic Explorer was 41% MultiClient 8% Imaging recorded close to record permanently de-rigged from 3% Other high MultiClient late sales 3D operations to a 2D, source revenues. and EM acquisition vessel, one year earlier than original plan. In January, PGS took delivery of Ramform Atlas, the PGS further increased its second in a series of four cost reduction programs Ramform Titan-class vessels. during 2014, achieving Cost Reductions savings of approximately In March 2014 PGS amended USD 90 million compared 2015 Target USD 190m and extended its Term Loan to cost prognosis at the start 2014 Actual USD 90m B facility, with new maturity of the year. in 2021. At the same time the Company secured Export Delivery times for the two Credit Financing for the two last Ramform Titan-class last Ramform Titan-class vessels, Ramform Tethys vessels. and the Ramform Hyperion, was rescheduled to first During the summer of 2014, quarter and third quarter PGS expanded on its Towed 2016. Streamer EM activities by covering all of the blocks For 2014, the Board included in the 23rd licensing of Directors proposes PGS Revenues round in the Barents Sea a dividend of NOK 0.70 South East area. per share. USD 1 518.3m USD 1 501.6m USD 1 453.8m USD 1 253.3m Key Financial Figures In USD million except per share data 2014 2013 2012 2011 Revenues 1 453.8 1 501.6 1 518.3 1 253.3 EBITDA (as defined) 702.6 828.9 776.2 534.8 EBIT ex. impairment charges1 178.0 397.1 293.0 141.3 EBIT as reported 104.2 382.1 293.8 138.7 Net income (50.9) 238.3 185.5 33.7 EPS (0.24) 1.11 0.86 0.16 Net cash provided by operating activities 584.3 775.3 752.9 480.4 Capital expenditures 371.3 437.8 368.1 279.9 Cash investment in MultiClient library 344.2 373.0 297.4 203.9 Total assets 3 563.0 3 544.3 3 275.6 3 137.2 MultiClient library 695.2 576.9 382.3 334.1 Cash and cash equivalents 54.7 263.8 390.3 424.7 Shareholders equity 1 901.6 2 065.6 1 911.5 1 771.7 Net interest bearing debt 1 048.0 666.7 435.6 394.2 2011 2013 2012 2014 1) See notes to the financial statements for details of impairment by period presented | ] ) 0 x ; w , x ( g • ) w , x ( p | — n ) · w • , x p ( = p — • i ) w 0 x p ; v w n , x | ( p g [ u · p ( x n S 0 , d w ∫ ) = = ) ∫ w d , S 0 n x ( p · u [ g p ( | x , w n v ; x p 0 w ) i • — p = ( x p , • w · ) n — p | ( x ] , ) w 0 ) x • ; w g , ( x x ( , ğ w ; • x ) 0 w ) , ] x ( | p p d — o ) w n w , ( x x ( 0 , p w • ) ) = 0 ∫ x d ) ; S = w w n , ∫ , d x 0 · x S ( [ ( ğ — n n w — ğ · [ o [ · ( d — x p n , ğ w | ( S x ; d x ] , ) w ∫ 0 = ) 0 ; • x x ) ; 0 ) w p w • , ( , 0 x x x ( p , ( ( w g x n ) , w • w o — ) ) d w p p — , ( x | x ( p , p ( ] w x ) , ) — w 0 • x ) ) ; ğ w • , w ( ğ , x x ( x , ( ( w p x g ,w ; • x ) • ; ) 0 0 x ) x 0 w ] ; , ) ] x | w ( , | x p n ( n g — · [ ) • · · • w n , p p = S x = ( — d ∫ — p i w = i ) w • ) p p w 0 v , v x n 0 n ; x ( w | | , p p u p x u ( u p p p g [ | ( ( x · x n 0 0 , n , v w w p S ) d ) w = = i ∫ ∫ d — = S p n • · · [ g n ( x | , w ] ; ) x 0 0 x ) ; • w p , x ( ( x , ğ w • ) ) — w , p x ( ( x p , w — ) ) 4 • w , g x ( ( x p , w • ; ) x 0 x 0 ; ) ] w , | x ( p d ğ o — [ w · n ( x n S 0 , d w ∫ = ) Productivity and Technology Leadership Technology and Productivity ANNUAL REPORT 2014 | ] ) 0 x ; w , x ( g • ) w , x ( p | — n ) · w • , x p ( = p — • i ) w 0 x p ; v w n , x | ( p g [ u · p ( x n S 0 , d w ∫ ) = = ) ∫ w d , S 0 n x ( p · u [ g p ( | x 5 , w n v ; x p 0 w ) i • — p = ( x p , • w · ) 2 n — 6 p | 8 ( x ] , 10 ) w 10 0 ) 11 x • ; 12 w g , ( 15 x x ( 16 , ğ w 18 ; • x 20 ) 0 w ) 22 , ] x 26 ( | 34 p p 36 d — o 45 ) w n 46 w , ( x x 104 ( 0 , p w • ) ) = 0 ∫ x d ) ; S = w w n , ∫ , d x 0 · x S ( [ ( ğ — n n w — ğ · [ o [ · ( CONTENTS d — x p n , ğ Key Figures w | ( S Letter From the CEO x ; d x ] , The World of PGS ) w ∫ 0 = ) Competitive Advantages 0 ; • x x ) Business Areas ; 0 w p ) , The PGS History w • ( , 0 x Executive Management x x ( p , ( ( w Marine Contract g x n ) MultiClient , w • w o — ) Operations ) d w p p Imaging & Engineering — , ( x | The PGS Share x ( p , Corporate Governance p ( ] w x ) Board of Directors , — 0 ) w • Board of Directors’ Report x ) ) ; Responsibility Statement • ğ w w , , ( Financial Statements ğ x x ( x , Auditor’s Report ( ( w p x g ,w ; • x ) • ; ) 0 0 x ) x 0 w ] ; , ) ] x | w ( , | x p n ( n g — · [ ) • · · • w n , p p = S x = ( — d ∫ — p i w = i ) w • ) p p w 0 v , v x n 0 n ; x ( w | | , p p u p x u ( u p p p g [ | ( ( x · x n 0 0 , n , v w w p S ) d ) w = = i ∫ ∫ d — = S p n • · · [ g n ( x | , w ] ; ) x 0 0 x ) ; • w p , x ( ( x , ğ w • ) ) — w , p x ( ( x p , w — ) ) • w , g x ( ( x p , w • ; ) x 0 x 0 ; ) ] w Annual Report , | x ( p ğ 2014 d o — [ w · n ( x n S 0 , d w ∫ = ) 6 LETTER FROM THE CEO Letter From the CEO Jon Erik Reinhardsen President & CEO Dear Fellow Shareholder Our financial performance in 2014 was impacted by the lower oil price, causing market conditions to be more difficult in the second half of the year. Marine contract margins and MultiClient pre-funding levels were influenced the most, while MultiClient late sales held up quite well with revenues close to record high. The seismic market deteriorated significantly during 2014. a dividend of NOK 0.7 per share at the upcoming annual Oil companies entered 2014 with a high focus on reducing general meeting.