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Record fourth quarter helps TGS to reach annual guidance

05 February 2015OSE

ASKER, NORWAY (5 February 2015) - Following its update on 13 January, TGS now confirms net revenues of USD 298 million in Q4 2014, up 10% from USD 271 million in Q4 2013 and representing a record high for the Company.  TGS achieved its 2014 guided revenues with full year net revenues of USD 915 million, up 4% from USD 883 million in 2013.

4th QUARTER HIGHLIGHTS 

  • Consolidated net revenues were USD 298 million, compared to USD 271 million in Q4 2013.
  • Net late sales totaled USD 226 million, up 4% from USD 218 million in Q4 2013.
  • Net pre-funding revenues were USD 62 million, up 44% from Q4 2013, funding 49% of the Company's operational multi-client investments during Q4 (investments of USD 126 million, up 37% from Q4 2013).
  • Proprietary revenues were USD 9 million, compared to USD 10 million in Q4 2013.
  • Operating profit (EBIT) was USD 47 million (16% of net revenues), compared to USD 120 million (44% of net revenues) in Q4 2013. Following a decision to close the Reservoir Solutions business, TGS made an impairment in Q4 2014 of USD 54.4 million (USD 50.2 million after reversal of a related deferred tax liability recognized as tax income). Also, an impairment of USD 9.5 million has been recognized related to a fair-value assessment of other non-current assets. Adjusted for the impairment costs, operating profit was USD 111 million (37% of net revenues).
  • Cash flow from operations was USD 131 million, compared to USD 215 million in Q4 2013.
  • Earnings per share (fully diluted) were USD 0.31, down from USD 0.81 in Q4 2013.

FULL YEAR 2014 FINANCIAL HIGHLIGHTS 

  • Consolidated net revenues were USD 915 million, up from USD 883 million in 2013.
  • Net late sales from the multi-client library totaled USD 631 million, down 1% from USD 638 million in 2013.
  • Net pre-funding revenues were USD 247 million, up 33% from 2013, funding 53% of the Company's operational multi-client investments during 2014 (investments of USD 462 million, up 5% from 2013).
  • Proprietary revenues were USD 37 million, compared to USD 59 million in 2013.
  • Operating profit (EBIT) was USD 295 million (32% of net revenues), compared to USD 387 million (44% of net revenues) in 2013. Adjusted for the impairment costs related to the closure of the Reservoir Solutions business and the re-assessment of the fair value of other non-current assets, operating profit was USD 358 million (39% of net revenues).
  • Cash flow from operations was USD 605 million compared to USD 543 million in 2013, an increase of 11%.
  • Earnings per share (fully diluted) were USD 2.09, down from 2.59 in 2013.

"We are very pleased to announce a record fourth quarter and end of year 2014, which helped us to reach our annual guidance despite challenging market conditions. Q4 was marked by continued strong late sales from our high-quality data library and we set a new record for late sales in the quarter. For 2015, we expect continued downward pressure on exploration spending based on lower oil prices. TGS is entering into 2015 with a record high order backlog and will continue to capitalize on the asset-light business model and strong balance sheet," TGS' CEO Robert Hobbs stated.

To access TGS Q4 2014 results information click below: 

Investor Presentation and Webcast 

Robert Hobbs (CEO) and Kristian Johansen (COO/CFO) will present the results at 08:30 CET at the Hotel Continental, Stortingsgata 24/26 in Oslo, Norway.  The presentation is open to the public. The presentation can be followed live on the internet at www.tgs.com.

The slides from the presentation will also be available in PDF format on the TGS website.


Q4 2014 Conference Call

CEO Robert Hobbs and COO/CFO Kristian Johansen will host a conference call on 5 February 2015 at 15:00 CET (9:00 AM New York time).   Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access. 

  • Norwegian attendees are invited to call +800 56054 or +47 2316 2787 
  • International attendees are invited to call 0800 279 5004  or +44 (0)20 3427 1907
  • US attendees are invited to call +1 877 280 2342

Participants will need to quote the following confirmation code when dialing into the conference: 6075215.

A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access replay of the TGS conference call, 

  • dial +47 2100 0498 (Norway) or +44 (0)20 3427 0598 (International) or +1 866 932 5017 (US)
  • replay access code 6075215 followed by # (pound-sign)  

A replay of the conference call will also be available at www.tgs.com.



TGS provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.

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 product 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.