TGS Q2 2023 Revenue Update

Source Company Press Release
Company TGS ASA
Tags Corporate: Corporate Results, Country: Norway, Financial - Costs & Metrics: Capital Expenditures
Date July 10, 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:

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

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