SOURCE: TGS

TGS

April 23, 2015 08:00 ET

TGS Announces Q1 Revenues of USD 172 Million

ASKER, NORWAY--(Marketwired - Apr 23, 2015) - TGS reported net revenues of USD 172 million in Q1 2015, compared to USD 222 million in Q1 2014. Net late sales were weaker than anticipated at USD 72 million, reflecting a deterioration in seismic demand as energy companies significantly reduced exploration spending. Record high cash flow from operations of USD 260 million contributed to a cash balance of USD 352 million at the end of the quarter.

1ST QUARTER HIGHLIGHTS 

  • Consolidated net revenues were USD 172 million, compared to USD 222 million in Q1 2014.
  • Net late sales totaled USD 72 million, down 48% from USD 137 million in Q1 2014.
  • Net pre-funding revenues were USD 94 million, up 26% from Q1 2014, funding 58% of the Company's operational multi-client investments during Q1 (investments of USD 163 million, up 26% from Q1 2014).
  • Proprietary revenues were USD 6 million, compared to USD 11 million in Q1 2014.
  • Operating profit (EBIT) was USD 37 million (22% of net revenues), compared to USD 94 million (42% of net revenues) in Q1 2014.
  • Cash flow from operations was USD 260 million, compared to USD 221 million in Q1 2014.
  • Earnings per share (fully diluted) were USD 0.28, down from USD 0.66 in Q1 2014.

"Net revenues in Q1 were lower than our expectations due to weaker late sales from the data library in all geographic regions. Demand for seismic data has significantly deteriorated over the first three months of 2015 and the outlook for improvement in the market remains quite uncertain. On a positive note, cash flow in Q1 was strong and the Company has a cash balance of USD 352 million as of 31 March 2015. TGS continues to be uniquely positioned within our industry with a strong balance sheet combined with a flexible asset-light business model," TGS' CEO Robert Hobbs stated.

To access TGS Q1 2015 results information click below:

Q1 2015 Conference Call

CEO Robert Hobbs and COO/Interim CFO Kristian Johansen will host a conference call on 23 April 2015 at 15:00 CET (9:00 AM New York time). Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access.

  • Norwegian attendees are invited to call +800 56054 or +47 2316 2787
  • International attendees are invited to call 0800 279 5004 or +44 (0)20 3427 1907
  • US attendees are invited to call +1 877 280 2342

Participants will need to quote the following confirmation code when dialing into the conference: 629507.

A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access replay of the TGS conference call,

  • Dial +47 2100 0498 (Norway) or +44 (0)20 3427 0598 (International) or +1 866 932 5017 (US)
  • Replay access code 3152609 followed by # (pound-sign)

A replay of the conference call will also be available at www.tgs.com.

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 principal 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".

Contact Information

  • For additional information about this press release please contact:

    Kristian Johansen
    COO/Interim CFO
    Tel: +47 47 60 33 34
    Email: kristian.johansen@tgs.com

    Will Ashby
    Director Finance Western Hemisphere & Investor Relations
    Tel: +1 713 860 2184
    Email: will.ashby@tgs.com