OSLO, Norway (15 February 2024) - TGS today reported interim financial results for Q4 2023.
The results reflected strong operational performance and continued strong growth in multi-client early sales, with late sales coming in below expectations.
Financial highlights:
- POC revenues (1) were USD 206 million compared to USD 227 million in Q4 2022
- POC EBITDA of USD 137 million versus USD 151 million in Q4 2022
- POC operating result was USD 47 million compared to USD 74 million in Q4 2022.
- Contract inflow of USD 275 million during Q4 2023 compared to USD 283 million in Q4 2022 – total POC order backlog including Acquisition of USD 545 million
- Strong development in proprietary sales and early sales, offset by weak late sales
- Dividend of USD 0.14 (NOK 1.47) per share to be paid in Q1 2024
- IFRS revenues (1) of USD 189 million versus USD 219 million in Q4 2022
- IFRS EPS (fully diluted) of USD -0.07 versus USD 0.17 in Q4 2022
"While we are pleased to deliver pro-forma annual revenue growth of 14% in 2023, we are disappointed with late sales in Q4. We did not see the normal seasonal late sales uptick, as customers’ year-end funds were limited by high-cost inflation, increased spending on drilling and new seismic data acquisition, and delayed licensing rounds. On a positive note, we saw good order inflow and positive momentum in our Acquisition business and strong development in the Digital Energy Solutions business. I’m increasingly optimistic for 2024, based on positive signals from our customers. Our POC contract backlog going into 2024 is 21% higher than a year earlier and the pipeline of further business opportunities looks promising,” says Kristian Johansen, CEO of TGS.
Management webcast presentation
CEO Kristian Johansen and CFO Sven Børre Larsen will present the Q4 2023 results at 09:00 CET at House of Oslo, Ruseløkkveien 34, Oslo, Norway. The presentation is open to the public and can be followed live online.
Access and registration for online attendees are available by copying and pasting this link into your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20240215_13/
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
CFO
Tel: +47 90 94 36 73
E-mail: investor@tgs.com
Notes
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 Q4 2023:
IFRS reported revenue: USD 189 million
- Revenue recognized from performance obligations met during Q4 2023 for completed projects: USD 43 million
+ Revenue recognized under POC during Q4 2023: USD 59 million
= POC reported revenue: USD 206 million
Adjustments between IFRS and POC revenue numbers for Q4 2022:
IFRS reported revenue: USD 219 million
- Revenue recognized from performance obligations met during Q4 2022 for completed projects: USD 23 million
+ Revenue recognized under POC during Q4 2022: USD 31 million
= POC reported revenue: USD 227 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.