ASKER, NORWAY (2 August 2018) - TGS reported net revenues of USD 158 million in Q2 2018, up 47% from Q2 2017. Operating profit for the quarter was USD 54 million (34% of net revenues), the highest quarterly operating profit in four years. TGS' strong cash flow generation continued with free cash flow of USD 55 million in the quarter, up from USD 12 million in Q2 2017, resulting in an increased cash balance of USD 338 million. Quarterly dividend will be maintained at USD 0.20 per share, up 33% from Q2 2017.
2nd Quarter Highlights - Segment Reporting
*New multi-client investments excluding investments related to surveys with risk sharing arrangements
"TGS delivered an excellent financial result in Q2 2018 driven by strong late sales which were up 73% year-on-year. This helped TGS to achieve its highest quarterly operating profit in four years. The global multi-client seismic market has been on an improving trend for more than a year now. TGS's strong quarter was partly a result of high regional license round activity combined with a pick-up in activity related to acreage turnover and farm-ins particularly among independents and smaller E&P companies. These triggering events fluctuate from quarter to quarter, therefore short-term volatility continues to be high. However, TGS believes that, with oil price continuing well above the level budgeted by most E&P companies, additional funds may be available for exploration spending by our customers at the end of the year," TGS' CEO Kristian Johansen stated.
To access TGS Q2 2018 results information, please use the web links below:
Q2 2018 Presentation and Webcast
Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the results at 09:00 CEST at 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.
Q2 2018 Conference Call
CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 2 August 2018 at 15:00 CEST (09:00 EDT). Attendees may want to call 5-10 minutes before to ensure registration and access.
Participants will need to quote the following confirmation code when dialing into the conference: 7777090.
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:
A replay of the conference call will also be available at www.tgs.com.