Naersnes, Norway (10 October, 2005) - Based on preliminary reporting from operating units, TGS management now expects net revenues for the third quarter of 2005 to be approximately USD 70 million, bringing estimated net revenues for the first nine months of 2005 to approximately USD 164 million, 45% higher than the first nine months of 2004. As a result, management now believes it is more likely than not that TGS will exceed its previous guidance of 30% revenue growth for the full year of 2005.
As communicated on numerous previous occasions, TGS' revenue stream remains largely composed of late sales from the Company's data library. The exact timing and magnitude of such sales is difficult to forecast, and quarter-to-quarter revenue fluctuations are common. In addition, there are currently uncertainties related to how oil company exploration spending pattern during Q4 2005 will be affected by the disruptions of hurricanes Katrina and Rita in TGS' largest market, the Gulf of Mexico.
These storms adversely impacted field operations on the two surveys the Company was acquiring in the Gulf of Mexico during the quarter; the Deep Resolve and the Sophie's Link 3D projects, resulting in expanded timelines and higher costs than initially scheduled for these surveys. This will translate into slightly higher amortization rates than initially planned for the projects over their economic lifetime.
TGS' full 3rd quarter earnings release is scheduled for October 27th, 2005.
TGS-NOPEC offers a telephone conference hosted by CEO Hank Hamilton, VP Business Development John Adamick, and CFO Arne Helland on Tuesday, October 11th at 15:00 Norwegian time (09:00 AM New York time). A Q&A session will follow a short introduction by the management.
Norwegian attendees are invited to call 800 80 119 and
international attendees are invited to call +47 23 000 400.
Attendees may want to call 5-10 minutes before 15:00
(09:00 AM NY) hours to ensure registration and access.
To pose a question, please press *1
A replay of the Conference call will be available shortly afterwards.
To access replay of TGS NOPEC`s conference call,
dial +47- 22 76 91 21 account no.: 1193 followed by # (pound-sign)
press 1 Conference no.: 193 followed by # (pound-sign) press 1 to play.