OSLO, Norway (28 October 2021) - TGS today reported interim financial results for Q3 2021.

Net IFRS revenues amounted to USD 200 million in Q3 2021, an increase of 243% compared to Q3 2020. EBITDA was USD 167 million, and the operating result was USD 36 million, compared to USD 40 million and USD -90 million, respectively, in Q3 2020.

Net segment revenues (1) amounted to USD 61 million in Q3 2021, compared to USD 81 million in Q3 2020. Segment EBITDA was USD 28 million versus USD 62 million in the same quarter of 2020, while the segment operating result amounted to USD -28 million, the same as in Q3 2020.

Free cash flow (2) amounted to USD 6 million in Q3 2021, up from USD 4 million in Q3 2020. After shareholder distribution of USD 23 million, the cash balance totaled USD 190 million at 30 September 2021. For the first nine months of 2021, free cash flow amounted to USD 108 million, compared to USD -4 million in 2020.

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 7 million.

“The market conditions for multi-client seismic data continue to be challenging. E&P companies’ 2021 budgets do not allow for much spending beyond what was committed at the start of the year, meaning that the recent oil price increases so far have had little impact on spending levels. However, with the increasing oil price combined with low cost of exploration related services, the value proposition of exploration is approaching all-time-high levels, and we are starting to see some early signs of a recovery,” says Kristian Johansen, CEO of TGS. “I’m pleased with the progress seen in our New Energy Solutions business, where we expect to generate approximately USD 10 million of pro-forma revenues this year.” 

A live presentation and webcast of the results and business update, featuring CEO Kristian Johansen and CFO Sven Børre Larsen, will be held at Skøyen Atrium, Askekroken 11, 0277 Oslo, Norway (first floor) at 9:00 am CEST.

Access and registration for online attendees is available by copying and pasting
this link into your browser:

A recorded version of the entire presentation will be available on TGS.com after the live event.

For more information, contact:

Sven Børre Larsen
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 the annual report for a complete description of the Company's accounting principles.

Adjustments between IFRS and Segment revenue numbers for Q3 2021:
IFRS reported revenue: USD 200 million
- Revenue recognized from performance obligations met during Q3 for completed projects: USD 163 million
+ Revenue recognized under POC during Q3: USD 24 million
= Preliminary net segment reported revenue: USD 61 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 investments in the multi-client library.

TGS Q3 2021 Earnings Release

TGS Q3 2021 Presentation

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.