OSLO, Norway (8 April 2022) - Based on preliminary reporting from operating units, TGS management expects net Segment revenues* for Q1 2022 to be approximately USD 114 million, compared to USD 75 million in Q1 2021. Net IFRS revenues* are expected to be approximately USD 132 million, compared to USD 144 million in Q1 2021.
Kristian Johansen, CEO at TGS, commented: “We continued to see improvement in the market conditions during Q1 2022, with customers starting to become more interested in frontier areas. I’m particularly pleased with the strong late sales performance, which grew more than 80% compared to the same quarter of last year. With approximately USD 215 million of net cash, a large and diversified energy data library, and a solid digital foundation, TGS is well positioned to benefit from the increased activity level, both in the oil and gas area and in other energy segments.”
TGS will release the interim Q1 2022 financial statement on 12 May 2022.
*For the purpose of Segment reporting, multiclient revenues committed prior to completion of projects are recognized on a percentage of completion (“POC”) basis. This differs from IFRS reporting where revenues committed prior to completion are recognized when the customers receive access to the finished data.
Adjustments between preliminary IFRS and Segment revenue numbers for Q1 2022:
Preliminary IFRS reported revenue: USD 132 million
- Revenue recognized from performance obligations met during Q1 for completed projects: USD 58 million
+ Revenue recognized under POC during Q1: USD 40 million
= Preliminary net segment reported revenue: USD 114 million
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.
For further information, please contact:
Sven Børre Larsen
Tel.: +47 90 94 36 73