OSLO, NORWAY (23 July 2020) – TGS today reported its Q2 2020 results.
“Despite the unprecedented weak market conditions in Q2, TGS generated improved cash flow from operations compared to Q2 2019. During the quarter, TGS’ cost level has been reduced significantly in light of the weak market conditions. Lower cost and a continued strong balance sheet, place TGS in a unique position to continue generating strong cash flow and industry-leading return on capital,” says Kristian Johansen, CEO at TGS.
Net segment revenues* for the second quarter came in at USD 96 million, a 55% decline compared to Q2 2019. Investments in the multi-client library totaled USD 77 million and were supported by USD 38 million (49%) in prefunding. Q2 2020 EBITDA adjusted for non-recurring items was USD 69 million, down 61% from USD 178 million in Q2 2019 (pro-forma). The company completed its previously announced restructuring during Q2 and recognized non-recurring items of USD 16.8 million and impairment of selected projects in the multi-client library of USD 30 million. The Cash balance ending June 2020 was USD 198 million and supports continued dividend of USD 0.125 per share. Please see the attached report for further details.
CEO Kristian Johansen and CFO Fredrik Amundsen will also host a conference call today at 1500 CEST to go through the results and answer questions. We encourage attendees to call in 5-10 minutes before 1500 CEST to ensure registration and access.
Telephone conference dial-in details:
Norway: +47 23963688
United Kingdom: +44 3333009034
USA: +1 8335268347
* Figures based on Segment reporting, where sales committed prior to completion of the project are recognized on a Percentage of Completion basis. Please refer to the full Q2 2020 report for statements prepared according to IFRS.
TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.
For more information visit TGS online at www.tgs.com or contact:
Fredrik Amundsen, CFO
Tel.: +47 995 89 882
Forward-looking statements and contact information
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to several 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.