OSLO, Norway (12 May 2022) - TGS today reported interim financial results for Q1 2022.
Total revenue amounted to USD 132 million in Q1 2022 versus USD 142 million in Q1 2021. EBITDA was USD 101 million, and the operating result was USD 34 million, compared to USD 119 million and USD 25 million, respectively, in Q1 2021.
Percentage-of-completion (PoC) revenue (1) amounted to USD 114 million in Q1 2022, a significant increase from USD 75 million in Q1 2021.
Free cash flow (2) amounted to USD 31 million in Q1 2022, compared to USD 86 million in Q1 2021. After shareholder distribution of USD 19 million, the cash balance totaled USD 215 million on 31 March 2022 versus USD 254 million a year earlier.
The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 per share in Q2 2022.
“We are very pleased about our performance in Q1 2022, where we continued to see improvement in the market conditions and customers starting to become more interested in frontier areas. I’m particularly pleased with the strong late sales performance, with more than 200% growth from Q1 2021. With USD 215 million of net cash, a large and diversified energy data library, and a solid digital foundation, TGS is well positioned to benefit from the increased activity level, both in the oil and gas area and in other energy segments. Lastly, I’m pleased about the continued progress shown in the ESG area, as confirmed recently by the inclusion of TGS in the OBX ESG index.,” says Kristian Johansen, CEO of TGS.
A live webcast of the results and business update, featuring CEO Kristian Johansen and CFO Sven Børre Larsen, will be broadcasted today at 9:00 am CET.
Access and registration for online attendees is available here:
A recorded version of the entire presentation will be available on TGS.com after the live event.
For more information, contact:
Sven Børre Larsen
Tel: +47 90 94 36 73
1 - Percentage-of-completion (PoC) revenue:
PoC revenue are measured by applying the percentage-of-completion method to Early sales, added to Late sales and Proprietary sales. This is based on the principles applied prior to the implementation of IFRS 15, Revenue from Customer Contracts, on 1 January 2018.
Adjustments between IFRS and PoC revenue numbers for Q1 2022:
IFRS reported revenue: USD 132 million
- Revenue recognized from performance obligations met during Q1 for completed projects: USD 58 million
+ Revenue recognized under PoC during Q1: USD 40 million
= PoC reported revenue: USD 114 million
2 - Defined as Cash flow from operations after organic investments in the multi-client library.
TGS provides scientific data and intelligence to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialized services such as advanced processing and analytics alongside cloud-based data applications and solutions.
Forward Looking Statement
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, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the severe drop in oil prices. 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.