TGS announces 2018 Guidance

08 February 2018OSE

ASKER, NORWAY (8 February 2018) - During 2017 TGS acquired a record-high amount of 3D data at historical low cost. At the same time the company achieved industry-leading financial returns and strong free cash flow development, paving the way for an increase of 33% of the quarterly dividend in Q1 2018. Market conditions support a strategy of counter-cyclical investment and in 2018 TGS expects to continue adding high volumes of data to its multi-client library at low unit costs, forming the basis for continued robust returns and cash flows going forward.

Based on the current plans TGS provides the following guidance for 2018:

  • New multi-client investments of approximately USD 260 million
  • Additional multi-client investments expected from sales of existing surveys with risk sharing arrangements
  • Pre-funding of new multi-client investments expected to be approximately 45-50%
  • Amortization expected to be approximately USD 310 million

"With its strong balance sheet, industry-leading cash flow and world class geoscience and project development expertise, TGS will continue to thrive in the current market conditions.  Our library continues to grow and although the current base expectation is for relatively flat demand for seismic data in 2018, the risk is on the upside given the recent positive oil price trend," commented Kristian Johansen, CEO of TGS.

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