TGS Announces Q3 Revenues of USD 191 Million and 42% EBIT Margin

Thomson Reuters ONEOctober 23, 2013

ASKER, NORWAY (23 October 2013) - TGS reports net revenues of USD 191 million in Q3 2013, compared to USD 245 million in Q3 2012.  Net late sales totaled USD 138 million, compared to USD 139 million in Q3 2012, demonstrating continued customer interest in TGS` high quality data library.

3rd QUARTER HIGHLIGHTS

  • Consolidated net revenues were USD 191 million, a decrease of 22% compared to Q3 2012.
  • Net late sales totaled USD 138 million, compared to USD 139 million in Q3 2012.
  • Net pre-funding revenues were USD 43 million, down 56% from Q3 2012, funding 39% of the Company`s operational multi-client investments during Q3 (investments of USD 111 million, down 19% from Q3 2012).
  • Proprietary revenues were USD 9 million, compared to USD 7 million in Q3 2012.
  • Operating profit (EBIT) was USD 80 million (42% of net revenues), compared to USD 101 million (41% of net revenues) in Q3 2012.
  • Cash flow from operations was USD 118 million, down from USD 129 million in Q3 2012.
  • Earnings per share (fully diluted) were USD 0.54, compared to USD 0.71 in Q3 2012.

9 MONTHS FINANCIAL HIGHLIGHTS

  • Consolidated net revenues were USD 612 million, a decrease of 6% compared to the first nine months of 2012.
  • Net late sales from the multi-client library totaled USD 420 million, up 17% from USD 360 million in 2012.
  • Net pre-funding revenues were USD 142 million, down 48% from 2012, funding 41% of the Company`s operational multi-client investments during the first nine months (investments of USD 347 million, down 14% from 2012).
  • Proprietary revenues were USD 50 million, compared to 18 million in 2012.
  • Operating profit (EBIT) was USD 267 million (44% of net revenues), compared to USD 284 million (44% of net revenues) in 2012.
  • Cash flow from operations was USD 330 million after an extraordinary tax payment of USD 58 million in Q2 2013, a decrease of 22% from USD 420 million in 2012.
  • Earnings per share (fully diluted) were USD 1.78, compared to USD 1.95 for the same period in 2012.

"Solid late sales in Q3 2013 demonstrated that customers continue to demand high quality data from our existing library.  Our focus on quality has resulted in TGS foregoing or postponing a number of low pre-funded projects where the risk of achieving the required return is too high. We have also experienced some delays to permits in key geographical areas.  We continue to deliver superior margins and see promising opportunities in the market entering into 2014," TGS` CEO Robert Hobbs stated.

To access TGS Q3 2013 results information, click on the links below or go to the Company website at www.tgs.com:

TGS Q3 2013 Earnings Release
TGS Q3 2013 Presentation Slides
TGS Q3 2013 Webcast

Q3 2012 Conference Call  

CEO Robert Hobbs and CFO Kristian Johansen will host a conference call on 23 October 2013 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 2729 
  • International attendees are invited to call 0800 279 5004  or +44 (0)20 3427 1909
  • US attendees are invited to call +1 877 280 2296 

Participants will need to quote the following confirmation code when dialing into the conference: 5950091. 

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 +1 347 366 9565 (US)
  • replay access code 5950091 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, permanent reservoir monitoring 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 (TGS.OL).

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:

Kristian Johansen
Chief Financial Officer
Cell: +47 47 60 33 34
Email: kristian.johansen@tgs.com

Will Ashby
Director Investor Relations and M&A
Tel: +1 713 860 2184
Email: will.ashby@tgs.com


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

TGS Q3 2013 Earnings Release
TGS Q3 2013 Presentation Slides


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Source: TGS via Thomson Reuters ONE

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