ASKER, NORWAY (9 May 2019) – TGS reported net revenues of USD 110 million in Q1 2019, compared to USD 135 million in Q1 2018. While operational investments and pre-funding revenues came in behind plan due to postponed start-up of projects, this was offset by late sales coming in above internal expectations.
TGS’ cash balance remained strong at USD 390 million, supporting a quarterly dividend of USD 0.27 per share, up 35% from Q1 2018.
1st Quarter Highlights – Segment Reporting
- Consolidated net revenues were USD 100 million, down 18% from USD 135 million in Q1 2018
- Net late sales totaled USD 91 million, down 21% from USD 115 million in Q1 2018
- Net pre-funding revenues were USD 14 million, funding 37% of TGS’ operational multi-client investments for the quarter
- Operational multi-client investments were USD 37 million, versus USD 31 million in Q1 2018
- Operating profit (EBIT) was USD 17 million (15% of net revenues), compared to USD 25 million (18% of net revenues) in Q1 2018
- Net income was USD 18 million, up 35% from USD 13 million in Q1 2018
- Free cash flow (after multi-client investments) was USD 147 million, up 108% from USD 71 million in Q1 2018
- Cash balance at 31 March 2019 was USD 390 million
- Earnings per share (fully diluted) were USD 0.17, up 34% from USD 0.13 in Q1 2018
- Quarterly dividend is at USD 0.27 per share, up 35% from Q1 2018
Financial guidance for 2019 is unchanged and as follows:
- Growth in multi-client investments of approximately 20%
- Pre-funding of new multi-client investments expected to be 40-45%
- Total amortization cost to be at approximately the same level as 2018
“The market outlook continues to improve in line with a strong oil price development over the past months. We have announced several new projects so far this year and we remain confident in the guidance of investment growth of approximately 20% for 2019. We are also excited about our recently announced plan to acquire Spectrum and the opportunities the transaction will bring to TGS,” stated Kristian Johansen, CEO of TGS.
Company summary
TGS-NOPEC Geophysical Company (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.
For more information visit TGS online at www.tgs.com.
Forward-looking statements and contact information
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 principle 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).
TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY”.
For additional information about this press release please contact:
Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73
Email: investor@tgs.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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