OSLO, Norway (22 July 2021) - TGS today reported interim financial results for Q2 2021.

Net IFRS revenues amounted to USD 72 million in Q2 2021, an increase of 9% compared to Q2 2020 and USD 7 million higher than the preliminary earnings update July 8th. EBITDA was USD 50 million, and the operating result was USD -15 million, compared to USD 27 million and USD -97 million, respectively, in Q2 2020.

Net segment revenues (1) amounted to USD 54 million in Q2 2021, compared to USD 96 million in Q2 2020. Segment EBITDA was USD 32 million versus USD 56 million in the same quarter of 2020, while the segment operating result amounted to USD -25 million, compared to USD -85 million in Q2 2020.

Free-cash flow (2) amounted to USD 18 million in Q2 2021, up from USD -10 million in Q2 2020. After shareholder distribution of USD 20 million and spending USD 24 million in relation to mergers & acquisitions, the cash balance totaled USD 223 million at 30 June 2021.

The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 per share and continue its share repurchase program with a remaining value of up to USD 14 million.

“Our asset-light business model, robust balance sheet and strong cash flow enable us to take advantage of strategic opportunities, both in our subsurface data business and in our New Energy Solutions segment. As described in previous reports, the market conditions for multi-client seismic data continue to be very challenging, and there are no signs of substantial improvements in the near-term. However, based on dialogue with our largest customers, we remain confident that we will ultimately see a recovery of the market,” says Kristian Johansen, CEO of TGS.

A pre-recorded presentation of the results and business update featuring CEO Kristian Johansen and CFO Fredrik Amundsen can be viewed at http://www.tgs.com or here.

Today at CEST 3:00 pm Kristian Johansen, CEO at TGS, will host a conference call to go through the update and answer questions. We encourage attendees to call in 5-10 minutes before CET 3:00 pm to ensure registration and access.

Telephone conference dial-in details:

Norway: +47 23 50 02 36
United Kingdom: +44 333 300 92 63
USA: +1 833 526 83 97

For more information, contact:

Sven Børre Larsen
SVP Strategy
Tel: +47 90 94 36 73
E-mail: investor@tgs.com

1 - IFRS versus Segment Reporting:
The main difference between IFRS and Segment reporting relates to revenue recognition. Under IFRS revenue recognition generally is deferred until project completion and delivery to the customer when performance obligations are met. Under Segment reporting, net revenue from projects-in-progress is recognized based on Percentage of Completion (POC). Revenue recognition has subsequent effects on the recognition of amortization of the multi-client library. Please see annual report for a complete description of the Company's accounting principles.

Adjustments between IFRS and Segment revenue numbers for Q2 2021:
IFRS reported revenue: USD 72 million
- Revenue recognized from performance obligations met during Q2 for completed projects: USD 43 million
+ Revenue recognized under POC during Q1: USD 25 million
= Net segment revenue reported revenue: USD 54 million

Differences in EBIDTA and operating result between IFRS and segment reporting are caused by the aggregate differences in revenues and the resulting impact on amortization.

2 - Defined as Cash flow from operations after organic investments in the multi-client library.

About TGS
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.