OSLO, Norway (10 July 2023) - Based on preliminary reporting from operating units, management of TGS ASA ("TGS") expects IFRS revenues for Q2 2023 to be approximately USD 206 million, compared to USD 230 million in Q2 2022.
POC revenues* are expected to be approximately USD 241 million, up from USD 136 million in Q2 2022.
POC multi-client revenues are estimated at approximately USD 129 million, the same as in Q2 2022, with late sales of approximately USD 63 million, compared to USD 97 million in the same quarter of last year, which included significant M&A related transfer fees.
For the Acquisition business unit (former Magseis) gross revenues are expected at approximately USD 116 million (USD 107 million net of eliminations) in Q2 2023, up from USD 103 million pro-forma in Q2 2022.
Kristian Johansen, CEO at TGS, commented: "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 through our ocean bottom node business, which is showing solid revenue growth and good operational performance. Furthermore, we continue to see strong prefunding for new multi-client projects, which makes us 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 and were also significantly higher than in Q2 2022 when adjusting for transfer fees. 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 both in terms of revenues and profitability".
TGS will release its Q2 2023 results at approximately CET 07:00 am on 20 July 2023. CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at CET 08:30 am during a live webcast.
The webcast can be followed online via this link: https://channel.royalcast.com/landingpage/hegnarmedia/20230720_3/
The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.
*For the purpose of POC revenues, multiclient revenues committed prior to completion of projects are recognized on a percentage of completion ("POC") basis. This differs from IFRS reporting where revenues committed prior to completion are recognized when the customers receive access to the finished data.
Adjustments between preliminary IFRS and Segment revenue numbers for Q2 2023:
Preliminary reported IFRS revenue: USD 206 million
- Revenue recognized from performance obligations met during Q2 for completed
projects: USD 31 million
+ Revenue recognized under POC during Q2: USD 66 million
= Preliminary reported POC revenue: USD 241 million
For more information, visit TGS.com (http://www.tgs.com) or contact:
CFO Sven Børre Larsen
Tel.: +47 90 94 36 73
E-mail: investor@tgs.com
About TGS
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.
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.
