OSLO, Norway (20 July 2023) - TGS today reported interim financial results for Q2 2023.
The quarter reflected a continued improvement in market conditions, with strong growth in both POC revenues (1) and contract inflow.
Financial highlights:
- POC revenues (1) were 241 million compared to 136 million in Q2 2022
- POC EBITDA of USD 132 million versus USD 103 million in Q2 2022
- POC operating result was USD 39 million compared to USD 42 million in Q2 2022.
- Multi-client contract inflow of USD 180 million during Q2 2023 compared to USD 156 million in Q2 2022 – total POC order backlog including Acquisition of USD 417 million
- Strong performance by the Acquisition business unit – gross revenues of USD 114 million, 10% increase compared to Q2 2022 pro-forma
- Dividend of USD 0.14 (NOK 1.41) per share to be paid in Q3 2023
- IFRS revenues (1) of USD 206 million versus USD 230 million in Q2 2022
- IFRS EPS (fully diluted) of USD 0.18 versus USD 0.22 in Q2 2022
“E&P companies have focused their exploration spending on non-discretionary categories in the first half of the year, prioritizing drilling, infrastructure-led exploration, and 4D, as well as fulfilling work commitments. TGS has been well positioned to benefit from this, as evidenced by strong growth in multi-client early sales and Acquisition revenues. We continue to see robust inflow of prefunding for new multi-client projects, and we are confident that full-year multi-client investments will be well above USD 350 million, with an early sales rate in excess of 70%. Our late sales were up 37% sequentially in Q2 2023 and were also significantly higher than in Q2 2022, after adjusting for transfer fees related to M&A activity among customers. Q2 clearly demonstrates the benefits of our more diversified business model, and I’m particularly pleased to see that our Acquisition business is performing ahead of expectation in terms of revenues, profitability and synergy realization,” 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 8:30 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/20230720_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:
Sven Børre Larsen
CFO
Tel: +47 90 94 36 73
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 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 Q2 2023: USD 66 million
= POC reported revenue: USD 241 million
Adjustments between IFRS and PoC revenue numbers for Q2 2022:
IFRS reported revenue: USD 230 million
- Revenue recognized from performance obligations met during Q2 2022 for completed
projects: USD 127 million
+ Revenue recognized under POC during Q1 2023: USD 33 million
= POC reported revenue: USD 136 million
Company Summary
TGS provides scientific data and intelligence to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialized services such as Ocean Bottom Node (OBN) data acquisition, advanced processing and analytics alongside cloud-based data applications and solutions. For more information, visit TGS online at 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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