ASKER, NORWAY (23 October 2015) - TGS reports net revenues of USD 169 million in Q3 2015, compared to USD 190 million in Q3 2014. Earnings before interest and taxes (EBIT) totaled USD 46 million, corresponding to an EBIT margin of 27%. Cash flow from operations was USD 121 million, resulting in an increased cash balance of USD 191 million at the end of the Quarter. A Q3 backlog of USD 182 million was reported.
3rd QUARTER HIGHLIGHTS
Consolidated net revenues were USD 169 million, compared to USD 190 million in Q3 2014.
Net late sales totaled USD 90 million, down 31% from USD 130 million in Q3 2014.
Net pre-funding revenues were USD 74 million, up 45% from Q3 2014, funding 55% of the Company's operational multi-client investments during Q3 (operational investments of USD 135 million, up 45% from Q3 2014).
Proprietary revenues were USD 5 million, compared to USD 9 million in Q3 2014.
Operating profit (EBIT) was USD 46 million (27% of net revenues), compared to USD 71 million (38% of net revenues) in Q3 2014.
Cash flow from operations was USD 121 million, compared to USD 187 million in Q3 2014.
Earnings per share (fully diluted) were USD 0.39, down from USD 0.53 in Q3 2014.
9 MONTHS FINANCIAL HIGHLIGHTS
Consolidated net revenues were USD 481 million, down from USD 617 million in 2014.
Net late sales from the multi-client library totaled USD 244 million, down 40% from USD 405 million in 2014.
Net pre-funding revenues were USD 220 million, up 19% from 2014, funding 53% of the Company's operational multi-client investments during the first nine months of 2015 (operational investments of USD 414 million, up 23% from 2014).
Proprietary revenues were USD 17 million, compared to USD 28 million in 2014.
Operating profit (EBIT) was USD 119 million (25% of net revenues), compared to USD 247 million (40% of net revenues) in 2014.
Cash flow from operations was USD 467 million compared to USD 474 million in 2014, a decrease of 1%.
Earnings per share (fully diluted) were USD 0.91, down from 1.78 in 2014.
"Energy companies continue to cut exploration spending, leading to continued pressure on demand for seismic data. Customer communication indicates that the current difficult market conditions will persist for some time. With a flexible cost structure and an asset-light balance sheet, TGS is positioned to take advantage of the uncertain market conditions and strengthen our position further," TGS' CEO Robert Hobbs stated. "Although investments will decline substantially in Q4, our 2015 revenue guidance remains unchanged".
To access TGS Q3 2015 results information, click on the links below or go to the Company website at www.tgs.com:
CEO Robert Hobbs and CFO Sven Børre Larsen will host a conference call on 23 October 2015 at 16:00 CET (10:00 AM New York time). Attendees may want to call 5-10 minutes before 16:00 CET (10:00 AM NY) to ensure registration and access.
Norwegian attendees are invited to call +800 56053 or +47 2350 0486
International attendees are invited to call 0800 279 5004 or +44 (0)20 3427 1901
US attendees are invited to call +1 877 280 2296
Participants will need to quote the following confirmation code when dialing into the conference:5334026
A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.
A replay of the conference call will be available shortly after. To access replay of the TGS conference call,
Dial +47 2100 0498 (Norway) or +44 (0)20 3427 0598 or +1 866 932 5017 (US)
Replay access code is5334026 followed by the # (pound sign)
A replay of the conference call will also be available at www.tgs.com.