OSLO, Norway (10 January 2022) - Based on preliminary reporting from operating units, TGS management expects net segment revenues* for the fourth quarter of 2021 to be approximately USD 119 million, compared to USD 120 million Q4 2020. Net IFRS revenues* are expected to be approximately USD 105 million, compared to USD 143 million in Q4 2020.
Kristian Johansen, CEO at TGS, commented: “We experienced a stronger than normal seasonal uptick in sales in Q4, mainly driven by a solid performance by the U.S. Gulf of Mexico portfolio. Together with the improved order inflow seen over the past few months, this serves as an indication of a slowly improving market. I am also pleased to see that the strong cash generation continues. Cash flow before dividends, buy-backs and inorganic data purchases amounted to approximately USD 44 million in the quarter, resulting in a cash balance of approximately USD 215 million at year-end”.
TGS will release the interim Q4 2021 financial statement on 10 February 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 Q4 2021:
Preliminary IFRS reported revenue: USD 105 million
- Revenue recognized from performance obligations met during Q4 for completed projects: USD 40 million
+ Revenue recognized under POC during Q4: USD 54 million
= Preliminary net segment reported revenue: USD 119 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