Q1 2016 Update

08 April 2016OSE

ASKER (8 April, 2016) - Based on preliminary reporting from operating units, TGS management expects net revenues for the first quarter of 2016 to be approximately USD 64 million.

With operational investments of approximately USD 53 million and good cash collections in the quarter, the cash balance increased to around USD 210 million.  This is in addition to the undrawn revolving credit facility of USD 75 million.

The financial guidance released on 7 January, 2016 remains unchanged:

  • TGS expects multi-client investments of approximately 220 MUSD
  • Multi-client investments are expected to be prefunded 45 to 50%

"This last quarter has arguably been the most severe of this down cycle with many customers focusing on cost and headcount reduction resulting in a significant pull back from exploration spending. TGS will continue our strong focus on cost control, cash flow and maintaining a healthy balance sheet in this challenging market", commented Kristian Johansen, CEO, TGS.

The full first quarter earnings release is scheduled for 21 April 2016.  

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.

Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73

Will Ashby
SVP Investor Relations, HR & Communication
Tel: +1 713 860 2184