ASKER, NORWAY (8 July 2020) - Based on preliminary reporting from operating units, TGS management expects net segment revenues for the second quarter of 2020 to be approximately USD 96 million. Multi-client Investments for the quarter are expected to be approximately USD 80million with a prefunding rate of 48%.
Kristian Johansen, CEO at TGS, stated, “Despite the unprecedented weak market conditions in Q2, TGS generated late sales of USD 54 million from our data library. During the quarter, TGS cost level has been reduced significantly in light ofthe weak market conditions. Accruals for rightsizing of the organization, closure of offices, and a few region-specific impairments of the multi-client library will be charged to our Q2 accounts. These measures, and a continued strong balance sheet,place TGS in a unique position to continue generating strong cash flow and industry leading return on capital”.
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Chief Financial Officer
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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.
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. 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.