Gross revenues were 13% higher than in Q4 2007.
Consolidated net revenues were USD 172.4 million, up 2% from the USD 168.3 million in Q4 2007. This figure includes USD 16.6 million recognized from the settlement with Wavefield-Inseis.
Gross late sales from the multi-client library totaled USD 133.9 million, down 10% from USD 148.7 million in Q4 2007. Net late sales of USD 104.1 million were 21% down from Q4 2007 due to higher revenue sharing.
Net pre-funding revenues of USD 37.5 million increased 120% compared to Q4 2007 and funded 67% of the Company's operational investments into new multi-client products (USD 56.1 million).
Operating profit (EBIT), after expensed merger costs of USD 4.4 million and a provision for bad debt of USD 4.0 million, was USD 80.0 million (46% of Net Revenues), down 9% from the record high USD 88.0 million in Q4 2007.
Cash flow from operations after taxes but before investments was USD 110.3 million, versus USD 54.6 million in Q4 2007.
The unrealized non-tax deductible loss on shares held in Wavefield-Inseis amounted to USD 9.3 million in Q4 2008.
Earnings per share (fully diluted) were USD 0.56 versus USD 0.46 in Q4 2007.
FULL YEAR 2008 HIGHLIGHTS
Consolidated net revenues were USD 582.4 million, an increase of 29% compared to 2007.
Gross late sales from the multi-client library totaled USD 433.7 million, up 25% from 2007. Net late sales from the multi-client library after revenue sharing totaled USD 337.5 million, up 8% from USD 312.4 million in 2007.
Operating profit (EBIT) was USD 269.0 million (46% of Net Revenues), up 21% from USD 222.0 million in 2007.
Cash flow from operations after taxes but before investments was USD 350.8 million, versus USD 269.7 million in 2007.
Operational investments in the multi-client inventory were 50% pre-funded and totaled USD 287.0 million versus USD 136.3 million in 2007.
Unrealized losses on Wavefield shares during 2008 total USD 75.1 million. All shares were sold in January 2009 resulting in a USD 0.3 million gain which will be recognized in Q1 2009.
Earnings per share (fully diluted) including non-operational items were USD 1.08 versus USD 1.26 in 2007.
"We are pleased to have fulfilled every aspect of our guidance for 2008", TGS's CEO Hank Hamilton stated. "The current economic recession, credit crisis, and low oil price environment are creating significant near-term challenges for our industry. Nonetheless, we remain optimistic about the longer term fundamentals for the energy sector. At TGS our strong backlog, solid financial position, and highly flexible business model uniquely position us to take advantage of new opportunities in this cycle."
4th Quarter 2008