TGS announces Q3 revenues of USD 190 million

ASKER, NORWAY (23 October 2014) - TGS reports net revenues of USD 190 million in Q3 2014, compared to USD 191 million in Q3 2013. Earnings before interest and taxes (EBIT) totaled USD 71 million, corresponding to an EBIT margin of 38%. Cash flow from operations was USD 184 million, an increase of 57% from Q3 last year.  A record Q3 backlog of USD 260 million was reported.

3^rd QUARTER HIGHLIGHTS

• Consolidated net revenues were USD 190 million, compared to USD 191 million in Q3 2013.
• Net late sales totaled USD 130 million, down 6% from USD 138 million in Q3 2013.
• Net pre-funding revenues were USD 51 million, up 17% from Q3 2013, funding 55% of the Company's operational multi-client investments during Q3 (investments of USD 93 million, down 17% from Q3 2013).
• Proprietary revenues were USD 9 million, compared to USD 9 million in Q3 2013.
• Operating profit (EBIT) was USD 71 million (38% of net revenues), compared to USD 80 million (42% of net revenues) in Q3 2013.
• Cash flow from operations was USD 184 million, compared to USD 118 million in Q3 2013.
• Earnings per share (fully diluted) were USD 0.53, down from USD 0.54 in Q3 2013.

9 MONTHS FINANCIAL HIGHLIGHTS

• Consolidated net revenues were USD 617 million, up from USD 612 million in 2013.
• Net late sales from the multi-client library totaled USD 405 million, down 4% from USD 420 million in 2013.
• Net pre-funding revenues were USD 185 million, up 30% from 2013, funding 55% of the Company's operational multi-client investments during the first nine months of 2014 (investments of USD 336 million, down 3% from 2013).
• Proprietary revenues were USD 28 million, compared to USD 50 million in 2013.
• Operating profit (EBIT) was USD 247 million (40% of net revenues), compared to USD 267 million (44% of net revenues) in 2013.
• Cash flow from operations was USD 473 million compared to USD 330 million in 2013, an increase of 44%.
• Earnings per share (fully diluted) were USD 1.78, same as in 2013.

"We are pleased to announce Q3 revenues in line with Q3 2013 despite a challenging market with lower oil prices and continued downward pressure on exploration spending. TGS continues to see good investment opportunities and will capitalize on our asset-light business model and strong balance sheet. Our record high back-log at the end of Q3 positions the company well to continue to deliver high quality data needed by the industry to identify new reserves," TGS' CEO Robert Hobbs stated.

To access TGS Q3 2014 results information, click on the links below or go to the Company website at www.tgs.com:

TGS Q3 2014 Earnings Release 
TGS Q3 2014 Presentation Slides
TGS Q3 2014 Webcast

Q3 2014 Conference Call 
CEO Robert Hobbs and CFO Kristian Johansen will host a conference call on 23 October 2014 at 15:00 CET (9:00 AM New York time).   Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access. 

• Norwegian attendees are invited to call +800 56053 or +47 2316 2729 
• International attendees are invited to call 0800 279 5004  or +44 (0)20 3427 1902
• US attendees are invited to call +1 877 280 1254

Participants will need to quote the following confirmation code when dialing into the conference: 8115596.

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 (International) or +1 866 932 5017 (US)
• replay access code 8115596 followed by # (pound-sign)  

A replay of the conference call will also be available at www.tgs.com.