ASKER, NORWAY--(Marketwired - Aug 4, 2016) - TGS reported net revenues of USD 114 million in Q2 2016, up 79% from the prior Quarter (USD 64 million in Q1 2016). Operating profit for the quarter was USD 22 million. This improved performance in Q2 2016 compared to preceding quarters reflects a slight improvement in oil companies' willingness to invest in seismic data as well as cost control and rightsizing initiatives implemented by the company (adjusted personnel and other operating costs down 30% from Q2 2015). Cash balance at the end of Q2 2016 was USD 162 million. Quarterly dividend is maintained at USD 0.15 per share.
2nd QUARTER HIGHLIGHTS
- Consolidated net revenues were USD 114 million, compared to USD 140 million in Q2 2015
- Net late sales totaled USD 84 million, up 4% from USD 82 million in Q2 2015
- Net pre-funding revenues were USD 26 million, down 50% from Q2 2015, funding 42% of the Company's operational multi-client investments during Q2 (operational investments of USD 62 million, down 46% from Q2 2015)
- Proprietary revenues were USD 3 million, compared to USD 5 million in Q2 2015
- Operating profit (EBIT) was USD 22 million (19% of net revenues), compared to USD 36 million (26% of net revenues) in Q2 2015
- Cash flow from operations was USD 9 million, compared to USD 86 million in Q2 2015
- Free cash flow (after multi-client investments) was USD -35 million, compared to USD -76 million in Q2 2015.
- Earnings per share (fully diluted) were USD 0.17, down from USD 0.24 in Q2 2015.
- New U.S. Gulf of Mexico project announced in collaboration with Schlumberger
- Updated financial guidance for 2016:
- New operational multi-client investments of approximately 230 MUSD
- Additional multi-client investments expected from sales of existing surveys with risk sharing arrangements
- Multi-client investments are expected to be prefunded 40% to 45%
"We are very pleased with our results for Q2 2016 following a challenging first quarter for the seismic industry. While seeing some signs of improvement in oil companies' willingness to invest in seismic data, the market is expected to remain challenging in the near term.
Despite this near term uncertainty TGS remains optimistic on the longer term future. The asset light, flexible business model and significantly lower cost base means that the company is well placed to further enhance its leading position in the seismic market." TGS' CEO Kristian Johansen stated.
To access TGS Q2 2016 results information click below:
Investor Presentation and Webcast
Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the results at 8:30 am CEST at the Hotel Continental (Teatersalen) in Oslo, Norway. The presentation is open to the public. The presentation can be followed live on the internet at www.tgs.com.
The slides from the presentation will also be available in PDF format on the TGS website.
Q2 2016 Conference Call
Kristian Johansen and Sven Børre Larsen will host a conference call on 4 August 2016 at 3:00 pm CEST (9:00 am New York time). Attendees may want to call 5-10 minutes before 3:00 pm CEST (9:00 am New York time) to ensure registration and access.
- Norwegian attendees are invited to call +800 56054 or +472316 2729
- International attendees are invited to call 0800 279 4977 or +44(0)20 3427 1917
- US attendees are invited to call +1 877 280 2342
Participants will need to quote the following confirmation code when dialing into the conference: 6552754
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 6552754 followed by # (pound-sign)
A replay of the conference call will also be available at www.tgs.com.
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 principle 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".
For additional information about this press release please contact: