TGS-NOPEC - 3rd Quarter 2003 Results

 | Source: TGS ASA TGS ASA

3rd Quarter 2003 Highlights
  • Consolidated Net Revenues were USD 32,0 million, an increase of 50% compared to Q3 2002.
  • Net Pre-funding Revenues of USD 7,0 million covered 46% of investments.
  • Total backlog grew 12% from Q2 2003 and 80% from one year ago to USD 26,5 million.
  • Gross Late Sales from the Multi-Client library totaled USD 24,5 million, up 94% from USD 12,6
    million in Q3 2002.
  • Operating Profit (EBIT) was USD 9,2 million, 29% of Net Revenues, compared to USD 0,6 million in Q3 2002.
  • Cash flow from operations after taxes was positive USD 3,0 million.
  • Earnings per Share (undiluted) were USD 0,22 compared to USD 0,01 in Q3 2002.


    • 9 Months 2003 Highlights
     
  • Consolidated Net Revenues were USD 90,8 million, up 2% compared to first nine months of 2002.
  • Investments in the Multi-Client library were USD 45,8 million with 50% Pre-funding coverage, compared to USD 39,5 million with 42% Pre-funding during the first nine months of 2002.
  • Operating Profit (EBIT) of USD 28,5 million was 31% of Net Revenues, down 11% compared to first nine months of 2002.
  • Net income was USD 18,7 million, 10% lower than USD 20,8 million for 9 months 2002.
  • Cash flow from operations after taxes was positive USD 15,9 million.
  • Total Equity ended September 30th, 2003 was USD 185,4 million, representing 82% of total assets.
    •  
     
    Revenue breakdown
     
    Consolidated Gross Late Sales of USD 24,5 million represented 71% of total revenues for the quarter. Net Late Sales were up 99% compared to Q3 2002. Net Early Participant revenues totaled USD 7,0 million, funding 46% of the Company's investments into new Multi-Client products during Q3 (USD 15,2 million). The Company earned proprietary contract revenues during the quarter of USD 2,5 million compared to USD 0,3 million in Q3 2002.
     
     
    Consolidated Net Revs Q3 2003 vs Q3 2002 per Geographical region
    (In mill USD)
    Q3 2003
    Q3 2002
    Q3 2003
    Q3 2002
    Change
    Eastern Hemisphere
    6,5
    7,7
    20 %
    36 %
    -16 %
    Western Hemisphere
    25,4
    13,7
    80 %
    64 %
    86 %
     Sum
    32,0
    21,4
    100 %
    100 %
    50 %
     
     
     
     
    Year-to-Date Revenue segment information
     
     
    Consolidated Net Revs YTD 2003 vs YTD 2002 per Geographical region
    (In mill USD)
    YTD 2003
    YTD 2002
    YTD 2003
    YTD 2002
    Change
    Eastern Hemisphere
    20,6
    20,0
    23 %
    23 %
    3 %
    Western Hemisphere
    70,2
    68,7
    77 %
    77 %
    2 %
     Sum
    90,8
    88,7
    100 %
    100 %
    2 %
     
     
    Operational highlights
     
    The Company added approximately 18,000 kilometers of new 2D and 1,300 square kilometers of new 3D data to its library of marketed seismic surveys during the 3rd quarter. A total of five different seismic vessels contributed to this effort. Most of the new acquisition was located in the US Gulf of Mexico, followed by the Canada and Greenland. In September, the Company completed acquisition of its deepwater Gulf of Mexico eMC 3D program and launched a new long offset 3D project, "Deep Resolve", located on the southern portion of the Louisiana shelf.  
     
    A2D added 77,000 logs from 41,000 wells to its digital well log library, bringing the total inventory to 1,65 million digital well log images from approximately 790,000 wells. A2D also released Version 2.0 of LOG-LINE Plus!, its web based application providing customers the ability to immediately download commercially available well log data or access their own proprietary data. This new release features faster performance and improved search capabilities.
     
    Outlook
     
    The Company's backlog for new seismic projects increased 16% to USD 16,7 million per September 30th, 2003 from USD 14,4 million at the end of the 2nd quarter. A2D backlog also increased slightly to USD 9,8 million compared to USD 9,4 million per June 30th. Total backlog increased for the 4th consecutive quarter and stands at USD 26,5 million at the end of Q3.
     
    TGS-NOPEC recently announced the signing of a letter of intent to purchase Riley Electric Log plus additional software and data assets from Divestco Inc for approximately USD 9 million. This transaction is expected to close before the end of 2003, but will not have any impact on 2003 earnings.
     
    TGS-NOPEC reiterates its expectation of approximately 10% net revenue growth for the full year 2003 over 2002. Should the announcement of blocks for Norway's 18th Round be delayed until late December however, there is a risk that a number of sales currently forecasted in 2003 could slip into 2004.
     
     
    The full report including tables can be downloaded from the following link:

    Attachments

    3rd. Quarter 2003