OSLO, Norway (26 October 2023) - TGS today reported interim financial results for Q3 2023. 

The quarter reflected a continued improvement in market conditions, with strong growth in both POC revenues (1) and contract inflow. 2023 multi-client investment guidance increased to approximately USD 400 million with a minimum early sales rate of 75%.

Financial highlights

  • POC revenues (1) were USD 293 million compared to USD 119 million in Q3 2022 (+34% pro-forma including Magseis Fairfield ASA).
  • POC EBITDA of USD 170 million versus USD 80 million in Q3 2022
  • POC operating result was USD 68 million compared to USD -7 million in Q3 2022.
  • Multi-client contract inflow of USD 178 million during Q3 2023 compared to USD 140 million in Q3 2022 – total POC order backlog including Acquisition of USD 475 million
  • Favorable margin development driven by good operational performance in Acquisition, realization of cost synergies and strong cost discipline
  • Dividend of USD 0.14 (NOK 1.56) per share to be paid in Q4 2023
  • IFRS revenues (1) of USD 225 million versus USD 135 million in Q3 2022
  • IFRS EPS (fully diluted) of USD 0.13 versus USD -0.02 in Q3 2022

“We are pleased to present a Q3 2023 report that is strong on all parameters. POC revenues are up 34% y/y (pro-forma), driven by robust performance in all business areas. Moreover, excellent operating performance and tight cost control leads to a healthy operating margin of 23%. Finally, cash flow was solid during the quarter, with a free cash flow of USD 45 million, further enhancing the balance sheet ahead of the announced acquisition of PGS. With leading exposure across the energy data value chain, TGS is well positioned to continue benefitting from the expected market growth going forward.” says Kristian Johansen, CEO of TGS.  

TGS Q3 2023 Earnings Release

TGS Q3 2023 Presentation

Management webcast presentation
TGS will release its Q3 2023 results at approximately CEST 07:00 am on 26 October 2023. CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at CEST 09:00 am during a live presentation and webcast. The presentation will take place at House of Oslo, Ruseløkkveien 34, 0251 Oslo.

The webcast can be followed online via this link: https://channel.royalcast.com/landingpage/hegnarmedia/20231026_7/ 

A recorded version of the entire presentation will be available on TGS.com (http://www.tgs.com) after the live event.

For more information, visit TGS.com (http://www.tgs.com) or 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 2023: 

IFRS reported revenue: USD 225 million
- Revenue recognized from performance obligations met during Q3 2023 for completed projects: USD 21 million
+ Revenue recognized under POC during Q3 2023: USD 88 million
= POC reported revenue: USD 293 million

Adjustments between IFRS and POC revenue numbers for Q3 2022: 

IFRS reported revenue: USD 135 million
- Revenue recognized from performance obligations met during Q3 2022 for completed projects: USD 55 million
+ Revenue recognized under POC during Q3 2022: USD 39 million
= POC reported revenue: USD 118 million

Company Summary
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 Ocean Bottom Node (OBN) data acquisition, advanced processing and analytics alongside cloud-based data applications and 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 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 volatile market conditions, investment opportunities in new and existing markets, demand for licensing of data within the energy industry, operational challenges, and reliance on a cyclical industry and principal customers. 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.