TGS-NOPEC Q4 and full year 2005 update
09 January 2006OSE
Naersnes, Norway (9 January, 2006) - Based on preliminary reporting from operating units, TGS management now expects Net Revenues for the fourth quarter of 2005 to be approximately USD 89 million, bringing estimated Net Revenues for the full year 2005 to approximately USD 254 million. As a result, full year over year growth from 2004 is now expected to be approximately 48%; significantly above management's previously expressed expectations of 30%.
Additionally, as a result of significantly higher than expected sales, the consolidated amortization charge for the full year 2005 is now expected to be slightly below the previously guided range of 40- 45%, leading to improved margins.
The full 4th quarter earnings release is scheduled for February 9th, 2006. Management will also issue guidance for 2006 at that time.
TGS CEO Hank Hamilton commented, "Our record net revenues in the fourth quarter resulted from a very robust and broad-based market response to TGS projects in all geographic locations. We expect demand for high quality seismic and well log products to remain strong throughout 2006 with the renewed oil industry focus on exploration."
TGS-NOPEC Geophysical Company (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The company also provides advanced depth imaging solutions and software through its TGS Imaging division. A2D Technologies, a wholly-owned subsidiary, is the energy industry's well log data marketplace offering the largest online database, immediate delivery, conversion services, data management services and worldwide well log data sourcing. The TGS family of companies places a strong emphasis on providing high-quality data and the highest level of service to the industry. All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason. TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).
John AdamickSenior VP, Geological Products and Services
Tel: +1 713 860 2100