Asker, Norway (13 July 2007) - On June 11, 2007 TGS-NOPEC Geophysical Company ASA (TGS) issued a message to the Oslo Stock Exchange providing expected timetables for when the M/V Geo Barents and the M/V BGP Pioneer would commence production. Now, following the delivery of the M/V Geo Barents and the receipt of a new schedule for the return of the M/V BGP Pioneer, TGS issues an update on the projected impact of lost production time of these two contracted 3D vessels to the Company's 2007 full year guidance.
The Geo Barents sailed from the shipyard in Norway on Saturday July 7th, and is now expected to mobilize in the Gulf of Mexico on or about July 25th. This represents an additional delay of approximately 3 weeks compared to the June 11th message.
The BGP Pioneer is currently in drydock undergoing propeller repairs, and is now expected to mobilize for a proprietary contract project on July 20th. This represents an additional 1 month delay from the expectations TGS communicated on June 11th.
As a result of the lost production time within the 2nd and 3rd quarters of 2007, the management of TGS now updates its expectations for the full year 2007 to be:
- Multi-client library investments of USD 160- 170 million, (down from 175- 185 million)
- Net revenue growth of 15-20%, (down from 20-25%)
- Pre-funding on investments of 50-60% (unchanged)
- Amortization rate of 28-33% of net multi-client revenues (unchanged)
The 2nd quarter of the year carried the heaviest impact of these delays, and consequently net revenues for Q2-07 are now expected to be approximately 8% above Q2-06.
The interim results for Q2-07 will be presented on August 9th.
TGS-NOPEC Geophysical Company ASA (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The Company provides advanced depth imaging solutions and software through its TGS Imaging division. Well log data is available for conversion, sourcing, management and immediate delivery through TGS subsidiary, A2D Technologies. Multi-client interpretive products and subsurface consulting services are provided through the Company`s Aceca subsidiary. The TGS family of companies places a strong emphasis on providing high-quality data and the highest level of service to the industry.
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 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).
For more information about this news release, please contact:
Arne Helland
Chief Financial Officer
Tel: +47 66 76 99 31/ + 47 91 88 78 29
Email: arne@tgsnopec.no
John Adamick
VP Business Development
Tel: +1 713 818-9035
Email: jada@tgsnopec.com