TGS Revenue Plunges
Seismic player TGS saw its revenue severely dented by weak market conditions in the fourth quarter and expects its multi-client survey investments to be more than halved this year on lower activity. The weak market conditions are expected to continue in 2016. As announced on 4 December 2015, the accounting practice with respect to amortization of the multi-client library will change with effect from 1 January 2016. In accordance with the new policy TGS estimates multi-client amortization of close to 290 MUSD in 2016. An expected impact of the new accounting practice will be more predictable and less volatile quarterly normal amortization of the data library. "TGS' 2016 operational multi-client investments will be reduced by more than 50% compared to 2015.
Geo-Science Provider TGS Reports Strong Half 2014 Results
TGS reports net revenues of USD 205 million in Q2 2014, compared to USD 210 million in Q2 2013. Earnings before interest and taxes (EBIT) totaled USD 82 million, corresponding to an EBIT margin of 40%. The Company's net pre-funding revenues were USD 60 million, up 39% from Q2 2013. Backlog of USD 224 million remains near an all-time high level. "Despite restricted near-term exploration spending as well as the delayed announcement of the blocks for the Norwegian 23rd licensing round, TGS continues to deliver strong results. Both sales from the existing data library and customer commitments for new projects were strong and our backlog remains near an all-time high level. TGS continues to be well positioned to deliver the data needed by the industry to identify new reserves.
TGS reports net revenue of USD 222 mi for Q1 2014
TGS has reported net revenues of USD 222 million for the first quarter of 2014 a rise of 5% from USD 211 million in Q1 2013.Net late sales totaled USD 137 million, up 9% from USD 127 million in Q1 2013. Net pre-funding revenues rose to USD 74 million and increase of 33% from Q1 2013 - funding 57% of the Company's operational multi-client investments during Q1 (investments of USD 129 million, up 3% from Q1 2013). Proprietary revenues were USD 11 million, compared to USD 29 million in Q1 2013. Operating profit (EBIT) was USD 94 million (42% of net revenues), compared to USD 89 million (42% of net revenues) in Q1 2013. Cash flow from operations was USD 223 million, compared to USD 179 million in Q1 2013. Earnings per share (fully diluted) were USD 0.66, up 13% from Q1 2013.
