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 atwww.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