TGS announces Q3 2024 results

TGS-Nopec Geophysical Company ASAShs

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OSLO, Norway (24 October 2024) - TGS today reports interim financial results for Q3 2024.

Financial highlights:

• Merger with PGS completed on 1 July 2024 – Q3 2024 first quarter including PGS
• Strong multi-client sales driven by a combination of solid pre-commitments for new investments and increased sales of existing data supported by material transfer fees
• Record-high OBN contract activity – utilization of streamer fleet improving on high bid activity
• Continued growth in New Energy Solutions 
• Full-year pro-forma organic multi-client investments lowered to USD 425-450 million as certain projects have been deferred into 2025
• Order inflow of USD 423 million during Q3 2024 – total produced backlog of USD 750 million
• Significant upgrades of credit ratings by S&P and Moody’s
• Robust balance sheet allows for continued dividend payment - USD 0.14 per share to be paid in Q4 2024

"Q3 2024 was the first quarter after completion of the TGS-PGS merger, and I am pleased to report revenues of half a billion dollars. We have completed the merger reorganization process, and we are ahead of schedule in realizing annual synergies of between USD 110 and 130 million. Strong multi-client revenues in the quarter were driven by a combination of robust pre-commitments to ongoing programs and strong library sales supported by material transfer fees. Further, we achieved record high utilization of our OBN crews, and the business continues its strong performance among a production-oriented client base. Although the utilization of the 3D streamer fleet has been lower than expected so far this year, we are on a positive trend based on ongoing negotiations and tenders.  Finally, I’m pleased to see that our solid balance sheet and sound financial policy has prompted substantial upgrades to the credit ratings by both Moody’s and S&P which puts us in good position to refinance the debt structure at attractive terms,” says Kristian Johansen, CEO of TGS. 

Management presentation
CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at 09:00 a.m. CEST at House of Oslo, Ruseløkkveien 34 in Oslo, Norway. The presentation is open to the public and will be webcasted live.

Access and registration for webcast attendees are available by copying and pasting the link below into your browser, or use the link on the front page of www.tgs.com: https://channel.royalcast.com/landingpage/hegnarmedia/20241024_5/

A recorded version of the entire presentation will be available on TGS.com (http://www.tgs.com) after the live event.

For more information, visit TGS.com (http://www.tgs.com) or contact:

Bård Stenberg
Vice President IR & Communication
Tel: +47 992 45 235
E-mail: investor@tgs.com

About TGS
TGS provides advanced data and intelligence to companies active in the energy sector. With leading-edge technology and solutions spanning the entire energy value chain, TGS offers a comprehensive range of insights to help clients make better decisions. Our broad range of products and advanced data technologies, coupled with a global, extensive and diverse energy data library, make TGS a trusted partner in supporting the exploration and production of energy resources worldwide. For further information, please visit www.tgs.com (https://www.tgs.com/).

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 volatile market conditions, investment opportunities in new and existing markets, demand for licensing of data within the energy industry, operational challenges, and reliance on a cyclical industry and principal customers. 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.

Attachments

• Q3 2024 Earnings Release
• Q3 2024 Presentation