Press Releases

TGS announces Q2 2012 revenues of USD 215 million and increases full year guidance

ASKER, NORWAY (2 August 2012) - TGS reports net revenues of USD 215 million in Q2 2012, compared to USD 136 million in Q2 2011, a 58% increase. This is the highest quarterly revenues in the Company's history. Investments were USD 162 million, up 162% from Q2 2011 

2nd QUARTER HIGHLIGHTS

  • Consolidated net revenues were USD 214.8 million, an increase of 58% compared to Q2 2011.
  • Net late sales totaled USD 108.5 million, up 11% from Q2 2011. 
  • Net pre-funding revenues were USD 100.0 million, up 275% from Q2 2011, funding 62% of the Company's operational multi-client investments during Q2 (investments of USD 161.9 million, up 162% from Q2 2011). 
  • Proprietary revenues were USD 6.3 million, compared to USD 11.4 million in Q2 2011. 
  • Operating profit (EBIT) was USD 94.2 million (44% of net revenues), compared to USD 57.7 million (42% of net revenues) in Q2 2011. 
  • Cash flow from operations was USD 144.0 million, up from USD 93.3 million in Q2 2011. 
  • Earnings per share (fully diluted) were USD 0.63, compared to USD 0.41 in Q2 2011. 
  • Arcis Seismic Solutions Corporation was acquired 15 June. Financial results will be consolidated as of Q3.

6 MONTHS FINANCIAL HIGHLIGHTS 

  • Consolidated net revenues were USD 406.1 million, an increase of 51% compared to H1 2011. 
  • Net late sales from the multi-client library totaled USD 221.3 million, up 21% from USD 182.8 million in 2011. 
  • Net pre-funding revenues were USD 174.6 million, up 175% from 2011, funding 66% of the Company's operational multi-client investments during H1 (investments of USD 263.1 million, up 150% from 2011). 
  • Proprietary revenues were USD 10.1 million, compared to USD 21.9 million in H1 2011. 
  • Operating profit (EBIT) was USD 183.1 million (45% of net revenues), compared to USD 116.7 million (44% of net revenues) in 2011. 
  • Cash flow from operations was USD 290.8 million, an increase of 26% from USD 231.6 million in 2011. 
  • Earnings per share (fully diluted) were USD 1.24 compared to USD 0.81 for the same period in 2011.

"TGS continues to break records and Q2 2012 is the best quarter in the history of the Company both in terms of revenue and operating profit," TGS' CEO Robert Hobbs stated. "While we see great interest from clients in funding new projects, we are also satisfied to see that our existing library data continues to perform well. Our strong performance in the first half of 2012 along with the acquisition of Arcis and attractive investment opportunities, allow us to further increase our investment and revenue guidance for 2012." 

For 2012, the revised full year guidance is as follows: 

  • Multi-client library investments of USD 425-475 million,
  • Average pre-funding in the range of 60-70% of investments, 
  • Average multi-client amortization rate in the range of 41-47% of net revenues, 
  • Net revenues in the range of USD 810-870 million, and 
  • Proprietary contract revenues of less than 5% of total net revenues.

To access TGS Q2 2012 results information, click on the links below or go to the Company website at www.tgs.com

Investor Presentation and Webcast 

CEO Robert Hobbs and CFO Kristian Johansen will present the results at 08:30 CET on 2 August 2012 at Shippingklubben located at Haakon VII's gt 1 in Oslo, Norway. The presentation is open to the public and can also be followed live on the internet at www.tgs.com. 

Q2 2012 Conference Call 

CEO Robert Hobbs and CFO Kristian Johansen will also host a conference call on 2 August 2012 at 15:00 CET (9:00 AM New York time). Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access.

  • Norwegian attendees are invited to call +800 56054 or +472316 2729
  • International attendees are invited to call 0800 279 5004 or +44(0)20 3364 5381
  • US attendees are invited to call +1 877 280 2296

Participants will need to quote the following confirmation code when dialing into the conference: 5449761. 

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 2100 0498 (Norway) or +44 (0)20 3427 0598 (International) or +1 347 366 9565 (US)
  • replay access code 5449761 followed by # (pound-sign)

A replay of the conference call will also be available at www.tgs.com