Press Releases

TGS reports Q1 2016 earnings and announces intent to maintain quarterly dividend of USD 0.15 per share in Q2 2016

ASKER, NORWAY (21 April 2016) - TGS reported net revenues of USD 64 million in Q1 2016, compared to USD 172 million in Q1 2015.  Operating profit for the quarter was USD -21 million compared to USD 37 million in Q1 2015, reflecting the new amortization policy for seismic surveys (effective from 1 January 2016) which is based on straight-line amortization rather than linked directly to revenues. Strong cash collection and lower investments resulted in positive free cash flow of USD 63 million driving an increased cash balance of USD 210 million. Quarterly dividend is maintained at USD 0.15 per share (subject to renewal of the Board authorization at AGM at 10 May 2016).

1st QUARTER HIGHLIGHTS   

  • Consolidated net revenues were USD 64 million, compared to USD 172 million in Q1 2015.
  • Net late sales totaled USD 38 million, down 47% from USD 72 million in Q1 2015.
  • Net pre-funding revenues were USD 23 million, down 76% from Q1 2015, funding 43% of the Company's operational multi-client investments during Q1 (operational investments of USD 53 million, down 68% from Q1 2015).
  • Proprietary revenues were USD 3 million, compared to USD 6 million in Q1 2015.
  • Operating profit (EBIT) was USD -21 million (-33% of net revenues), compared to USD 37 million (22% of net revenues) in Q1 2015.
  • Cash flow from operations was USD 145 million, compared to USD 260 million in Q1 2015.
  • Free cash flow (after multi-client investments) was USD 63 million, compared to USD 110 million in Q1 2015.
  • Earnings per share (fully diluted) were USD -0.20, down from USD 0.28 in Q1 2015.
  • Financial guidance for 2016 remains unchanged.

"This last quarter has arguably been the most severe of this down cycle and there are currently few tangible signs that a recovery is imminent.  With E&P spending likely to decline 20-30% this year we expect the market for seismic data to remain weak throughout 2016.   Oil companies are under significant pressure to reduce cost and as a result they are prioritizing their seismic spend in areas where they have current work programs and license obligations.  This could result in greater variability of seismic spend between quarters and across regions in the near term.  However, the long-term future of our asset-light, multi-client business remains strong.  Our focus on cost control, disciplined counter-cyclical investment and balance sheet strength positions TGS to enhance its leading position," TGS' CEO Kristian Johansen stated.


To access TGS Q1 2016 results information click below:


Q1 2016 Conference Call

CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 21 April 2016 at CEST 3:00 PM (EDT 9:00 AM).  Attendees may want to call 5-10 minutes before to ensure registration and access.

  • Norwegian attendees are invited to call +800 56053 or +47 23 16 27 71
  • International attendees are invited to call 0800 279 4841 or +44 (0)20 3427 1913
  • US attendees are invited to call +1 877 280 2296

Participants will need to quote the following confirmation code when dialing into the conference: 4759929. 

A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access replay of the TGS conference call, dial +47 2100 0498 (Norway), 0800 358 7735 or +44 (0)20 3427 0598 (International) or +1 866 932 5017 (US) replay access code 4759929 followed by # (pound-sign).

A replay of the conference call will also be available at www.tgs.com.