OSLO, NORWAY (11 February 2021) – TGS today reported interim financial results for Q4 2020.

Figures based on Segment reporting. Please refer to the full Q4 2020 report for statements prepared according to IFRS.

Net segment revenues (1) amounted to USD 120 million, a reduction of 48% from USD 232 million in Q4 2019. EBITDA was USD 106 million and the operating result was USD -66 million, compared to USD 189 million and USD 59 million, respectively, in Q4 2019. The operating result for Q4 2020 contains an impairment of the multi-client library of USD 88 million.

Free-cash flow (2) amounted to USD 28 million in Q4 2020. After a dividend payment of USD 15 million the cash holding increased by USD 16 million to USD 196 million on 31 December 2020.

The solid financial position allows TGS to increase the quarterly dividend by 12% to USD 0.14 per share as well as introducing a share repurchase program with a value of up to USD 20 million (3).

“The results continue to be affected by the COVID-19 situation and the steep reduction in oil companies’ capital spending. It is evident that the market for exploring new oil and gas resources is in a deep cyclical trough. However, the lack of investments may cause a strong cyclical recovery when we can put COVID behind us and demand for oil and gas comes back to normalized levels,” commented Kristian Johansen, CEO at TGS.

TGS announced today the launch of its New Energy Solutions (“NES”) business unit. By leveraging its core strengths, TGS’ goal is to be the leading provider of data and insights directed towards industries actively contributing to the reduction of GHG emissions, such as Carbon Capture and Storage (CCS), Deep Sea Mining (DSM), geothermal energy, wind energy and solar energy. The starting point is the Company’s vast subsurface data library, combined with core skills in geoscience, data processing, data management, data analytics and AI. This will be complemented by relevant additional data types and subject matter expertise.

“Over the past few years, we have seen an increasing interest for our data and insights from other industries besides the oil and gas industry. By establishing the NES business unit, we are preparing our non-oil & gas offering for further growth,” stated Kristian Johansen.

“Many of the investments required in renewable energy and CCS have long pay-back times. It is therefore critical to make well-informed and precise investment decisions. Our aim is to be the leading provider of data and insights that help de-risk investments and reduce the time-to-market. We have been helping our oil and gas customers to de-risk investment decisions for 40 years. With NES we will use our experience, global presence and core strengths to help new and existing customers with the energy transition,” said Kristian Johansen.

TGS Management will present the Q4 2020 results and host a Capital Markets Day today during a live-streamed webcast today. The event starts at CET 14.00 and is expected to last to approximately CET 16.00.

We encourage attendees to join the webcast 5-10 minutes before CET 14:00 to ensure access. During the webcast, there will be two opportunities for attendees to ask questions.

Presentation and webcast details:

An on-demand version of the Capital Markets Day will be available on TGS.com after the event.

For more information contact:

Fredrik Amundsen, CFO
Tel.: +47 995 89 882
E-mail: investor@tgs.com 

1 - Figures based on Segment reporting, where sales committed prior to completion of the project are recognized on a Percentage of Completion basis. Please refer to the full Q4 2020 report for statements prepared according to IFRS.
2 - Defined as Cash flow from operations after investments in the multi-client library.
3 – Subject to renewal of the Board of Director’s share repurchase authorization at the Annual General Meeting on 12 May 2021.

TGS Q4 2020 Earnings Release

TGS Q4 2020 Presentation & 2021 Guidance

About Us
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.