ASKER, NORWAY (12 February 2020) - TGS today reported net segment revenues* of USD 232 million for Q4 2019, a growth of 23% compared to USD 188 million in Q4 2018. The strong performance was mainly driven by improved sales momentum in Latin America and North America.
EBITDA* for Q4 2019 was USD 194 million excluding restructuring costs of USD 5 million (margin of 83%) compared to USD 200 million in Q4 2018 (margin of 83%).
Cash flow was strong during the quarter and the net cash balance increased to USD 323 million compared to USD 274 million at the end of 2018. This supports a dividend of USD 0.375 per share to be paid in Q1 2020, a growth of 39%. Furthermore, TGS continues to deliver industry leading ROACE of 19% in 2019, up from 18% a year earlier.
The acquisition of Spectrum is moving ahead as planned and USD 20 million in synergies have been identified and are in the process of being realized in 2020.
Kristian Johansen, CEO of TGS, stated: "TGS delivered another solid quarter in Q4 2019 despite E&P companies’ continued focus on cost control and capital discipline. I'm particularly pleased to see that we are continuing our strong performance in the Latin America region, where the company is well positioned to continue benefiting from our customers’ need to replenish reserves, targeting prolific and high potential basins. Furthermore, our sales pipeline for Q1 2020 looks promising, with high vessel activity combined with solid pre-funding."
Kristian Johansen and Dean Zuzic, CFO, will present the results on 12 February 2020 at 09:00 CET at the Felix Conference Center, Aker Brygge, Oslo, Norway. The presentation is open to the public and can be followed live on the internet at www.tgs.com.
* 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 2019 report for statements prepared according to IFRS.
Company summary TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi- client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions. For more information visit TGS online at www.tgs.com (http://www.tgs.com).
Forward-looking statements and contact information 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 principle customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. 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. TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS). TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY".
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