OSLO, Norway (27 October 2022) - TGS today reported interim financial results for Q3 2022.

Total revenue amounted to USD 135 million in Q3 2022 versus USD 200 million in Q3 2021.
The late sales portion of revenues was USD 65 million, representing a substantial increase compared to the USD 31 million reported for Q3 2021.

EBITDA was USD 97 million, and the operating result was USD 1 million, compared to USD 167 million and USD 18 million, respectively, in Q3 2021.

Percentage-of-completion (PoC) revenue (1) amounted to USD 119 million in Q3 2022, a 95% increase from USD 61 million in Q3 2021.

Order inflow was USD 140 million in Q3 2022, compared to USD 30 million in the same quarter of 2021.

Free cash flow (2) amounted to USD 11 million in Q3 2022, versus USD 8 million in Q3 2021. After dividend payment of USD 16 million and cash outlays related to acquisitions of USD 41 million, the cash balance totaled USD 192 million on 30 September 2022 versus USD 198 million a year earlier.

The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 (NOK 1.48) per share in Q3 2022, as well as providing flexibility to execute the strategic M&A transactions announced in early July 2022.

The company closed the acquisitions of Prediktor and ION Geophysical’s EPTS business during Q3 2022. In addition, TGS announced on 29 September 2022, the take-over of Magseis Fairfield shares representing approximately 75% of the outstanding shares. Settlement of the offer was completed and announced on 11 October 2022. TGS is in the process of preparing a mandatory cash offer for the remaining shares of Magseis Fairfield.

“With year-over-year growth of 108% in lates sales, the strong development we saw in the first half of the year continued in the third quarter. I'm also pleased that cash flow remains robust. The net cash position was USD 192 million on 30 September 2022, despite substantial inorganic investments during the quarter. We are excited about welcoming the three recent acquisitions to TGS. Magseis Fairfield, ION and Prediktor all fit perfectly with our strategy of being the leading provider of data and insights to the energy industry, and will more than double our existing backlog,” says Kristian Johansen, CEO of TGS.

CEO Kristian Johansen and CFO Sven Børre Larsen will present the results today at CEST 09:00 at the House of Oslo (the auditorium), Ruseløkkveien 34, 0251 Oslo.

The event will be streamed online at the following web address: https://channel.royalcast.com/landingpage/hegnarmedia/20221027_9/.

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 - Percentage-of-completion (PoC) revenue:
PoC revenue are measured by applying the percentage-of-completion method to Early sales, added to Late sales and Proprietary sales. This is based on the principles applied prior to the implementation of IFRS 15, Revenue from Customer Contracts, on 1 January 2018.
Adjustments between IFRS and PoC revenue numbers for Q3 2022:
IFRS reported revenue: USD 135 million
- Revenue recognized from performance obligations met during Q3 for completed projects: USD 55 million
+ Revenue recognized under PoC during Q3: USD 39 million
= PoC reported revenue: USD 119 million

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

TGS Q3 2022 Earnings Release

TGS Q3 2022 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.