OSLO, Norway (18 July 2024) - TGS today reported interim financial results for Q2 2024.
The quarter reflected a strong order inflow in our Acquisition business and a high POC early sales rate, resulting in solid profitability in POC financials.
Financial highlights:
- POC revenues(1) were USD 215 million compared to USD 241 million in Q2 2023
- POC EBITDA of USD 121 million versus USD 132 million in Q2 2023
- POC operating result was USD 28 million compared to USD 39 million in Q2 2023
- Contract inflow of USD 368 million during Q2 2024 compared to USD 198 million in Q2 2023 – total POC order backlog including Acquisition of USD 611 million
- Proprietary revenues increased approximately 30% sequentially and strong operational performance
- Dividend of USD 0.14 (NOK 1.51) per share to be paid in Q3 2024
- IFRS revenues(1) of USD 224 million versus USD 206 million in Q2 2023
- IFRS EPS (fully diluted) of USD 0.27 versus USD 0.18 in Q2 2023
“Without any special sales events, such as licensing rounds and transfer fees, we are satisfied with the development in multi-client revenues in the quarter. Late sales increased by 6% compared to the same quarter of last year and we continued to show strong sales of ongoing surveys with an early sales rate of 94%. Proprietary revenues increased approximately 30% sequentially and our operational performance was solid for ongoing projects. Furthermore, I'm pleased to see strong order inflow in our Acquisition business in the quarter, reflecting continued growth in demand for OBN data acquisition services. By completing the merger with PGS on 1 July, TGS is perfectly positioned to support our customers' exploration ambitions and capitalize on what we think will be a multi-year upcycle,” says Kristian Johansen, CEO of TGS.
Management webcast presentation
A live webcast of the results and business update, featuring CEO Kristian Johansen and CFO Sven Børre Larsen, will be broadcasted today at 9:00 am CEST.
Access and registration for online attendees are available by copying and pasting this link into your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20240718_3/
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
VP IR & Communication
Tel: +47 992 45 235
E-mail: investor@tgs.com
Notes
1 - Percentage-of-completion (POC) revenue:
PoC revenue are measured by applying the percentage-of-completion method to Early sales, added to Late sales and Proprietary sales. This is based on the principles applied prior to the implementation of IFRS 15, Revenue from Customer Contracts, on 1 January 2018.
Adjustments between IFRS and POC revenue numbers for Q2 2024:
IFRS reported revenue: USD 224 million
- Revenue recognized from performance obligations met during Q2 2024 for completed projects: USD 58 million
+ Revenue recognized under POC during Q2 2024: USD 49 million
= POC reported revenue: USD 215 million
Adjustments between IFRS and POC revenue numbers for Q2 2023:
IFRS reported revenue: USD 206 million
- Revenue recognized from performance obligations met during Q2 2023 for completed projects: USD 31 million
+ Revenue recognized under POC during Q1 2023: USD 66 million
= POC reported revenue: USD 241 million
Company Summary
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.
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.
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