OSLO, NORWAY (29 October 2020) – TGS today reported its results for the third quarter of 2020.
Net segment revenues1 for the quarter amounted to USD 80.6, made up by pre-funding revenues of USD 17.4 million, late sales of USD 60.7 million, and proprietary revenues of USD 2.5 million. Net segment revenues for the corresponding quarter of 2019 were USD 276.7 million2.
Personnel costs and Other operating costs (‘cash operating costs’) for the quarter totaled USD 17.3 million, a reduction of 64% compared to the third quarter of 20192.
EBITDA came in at USD 62.2 million, down from USD 224.9 million in the third quarter of 20192. The operating result for the third quarter was USD -27.9 million, compared to USD 102.5 million last year2.
Free cash flow3 was USD 4.5 million for Q3 2020 compared to USD -35.6 million in Q3 2019. As a result, the cash balance on 30 September 2020 was USD 180 million, supporting a continued dividend of USD 0.125 per share.
CEO Kristian Johansen said: “With our asset-light business model characterized by a low proportion of fixed cost, TGS is well-positioned to manage cyclical downturns and even prolonged periods of lower demand. To further strengthen our cash flow capacity, we have completed a major cost cutting program with cash operating cost reduced by 64% compared to Q3 2019. As such, we are well prepared to maintain our counter-cyclical investment approach at the same time as continuing to pay dividends to shareholders.”
A pre-recorded presentation of the results by CEO Kristian Johansen and CFO Fredrik Amundsen is available on the homepage at the TGS web site (www.tgs.com) or here. They will also host a conference call today at 1500 CET to go through the results and answer questions. We encourage attendees to call in 5-10 minutes before 1500 CET to ensure registration and access.
Telephone conference dial-in details:
Norway: +47 23 50 02 36
United Kingdom: +44 333 3009 031
USA: +1 844 625 1570
For more information contact:
Fredrik Amundsen, CFO
Tel.: +47 995 89 882
1 - 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 Q3 2020 report for statements prepared according to IFRS
2 – Pro-forma figures including Spectrum
3 – Defined as Cash flow from operations after investments in the multi-client library
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.
Forward Looking Statement
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.