TGS announces Q1 2018 Results with revenues up 56%

09 May 2018OSE

ASKER, NORWAY (9 May 2017) - TGS took advantage of improved market conditions in Q1 2018, with reported net revenues of USD 135 million, up 56% from USD 86 million in Q1 2017. Strong free cash flow of USD 71 million resulted in an increased cash balance of USD 302 million. Quarterly dividend will be maintained at USD 0.20 per share. 

1st Quarter Highlights - Segment Reporting

  • Consolidated net revenues were USD 135 million, up 56% from USD 86 million in Q1 2017
  • Net late sales totaled USD 115 million, up 67% from USD 69 million in Q1 2017 
  • Net pre-funding revenues were USD 18 million, up 15% from USD 15 million in Q1 2017, funding 57% of TGS' operational multi-client investments for the quarter
  • Operational multi-client investments were USD 31 million in addition to USD 3 million from risk sharing arrangements
  • Operating profit (EBIT) was USD 25 million (18% of net revenues), compared to USD 2 million in Q1 2017
  • Cash flow from operations was USD 103 million, compared to USD 185 million in Q1 2017
  • Free cash flow (after multi-client investments) was USD 71 million, compared to USD 74 million in Q1 2017
  • Cash balance at 31 March 2018 was USD 302 million in addition to the undrawn USD 75 million Revolving Credit Facility
  • Earnings per share (fully diluted) were USD 0.13, up from USD 0.02 in Q1 2017
  • Quarterly dividend maintained at USD 0.20 per share
  • Financial guidance for 2018 reiterated at:
    • 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%

*New multi-client investments excluding investments related to surveys with risk sharing arrangements

"TGS' performance in the past two quarters, driven by strong late sales across all regions, indicates that there has been an improvement in the underlying fundamentals of the global market for seismic data. The combination of higher oil price and lower cost base means that E&P companies now have more operating cash flow that can be used for growth investments.  While we still expect some volatility in the near-term, our counter-cyclical strategy has positioned TGS to benefit from the improved market conditions," TGS' CEO Kristian Johansen stated.

To access TGS Q1 2018 results information, please use the web links below: 

Q1 2018 Presentation and Webcast 
Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the results at 09:00 CEST at the Felix Conference Center, Aker Brygge, Oslo, Norway. The presentation is open to the public and can be followed live on the internet at www.tgs.com.

The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.

Q1 2018 Conference Call

CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 9 May 2017 at 15:00 CEST (09:00 EDT). Attendees may want to call 5-10 minutes before to ensure registration and access.

  • Norwegian attendees are invited to call 800 51084 or +47 2100 2610
  • International attendees are invited to call 0800 358 6377 or +44 (0)330 336 9105
  • US attendees are invited to call +1 800 239 9838 or +1 323-794-2551

Participants will need to quote the following confirmation code when dialing into the conference: 6527744.

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 23 50 00 77 or + 800 196 72 (Norway)
  • +44 (0) 207 660 0134 or 0 808 101 1153 (International)
  • +1 719-457-0820 or 888-203-1112 (US)
  • replay access code 6527744 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.



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

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