TGS Announces Q1 2023 Results

·4-min read
TGS ASA
TGS ASA

OSLO, Norway (11 May 2023) - TGS today reported interim financial results for Q1 2023.

The quarter reflected a continued improvement in market conditions, with strong growth in both POC revenues (1) and contract inflow.

Financial highlights:

  • POC revenues (1) were 229 million compared to 114 million in Q1 2023 (+100%, +27% pro-forma including Magseis Fairfield ASA).

  • POC EBITDA of USD 119 million versus USD 83 million in Q1 2022

  • POC operating result was USD 25 million compared to USD 21 million in Q1 2022.

  • Contract inflow of USD 248 million during Q1 2023 compared to USD 91 million in Q1 2023 (USD 117 million pro-forma including Magseis Fairfield ASA).

  • Free cash flow ex. M&A of USD 106 million versus USD 25 million in Q1 2022

  • Dividend of USD 0.14 (NOK 1.48) per share to be paid in Q2 2023

  • IFRS revenues (1) of USD 173 million versus USD 132 million in Q1 2022

  • IFRS EPS (fully diluted) of USD -0.07 versus USD 0.18 in Q1 2022

The positive market development continued in Q1 2023. In the multi-client area, contract inflow and POC revenues grew by 43% and 30%, respectively, from Q1 last year. The new Acquisition Business Unit (former Magseis Fairfield ASA) also performed well, with pro-forma sales and contract backlog increasing 18% and 25%, respectively, compared to Q1 2022. Free Cash Flow was high in the quarter at USD 106 million, leaving us with a solid balance sheet that allows for both strong growth in investments and continued dividend payments.  Looking ahead, we are optimistic that the growth will continue as our customers are likely to increase their spending on exploration data further this year,” says Kristian Johansen, CEO of TGS.

Management webcast presentation

CEO Kristian Johansen and CFO Sven Børre Larsen will present the Q1 2023 results today at 09:00 CEST at Felix Konferansesenter, Bryggetorget 3, Oslo, Norway. The presentation is open to the public and can be followed live online.

Access and registration for online attendees are available by copying and pasting this link into your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20230511_8/

A recorded version of the entire presentation will be available on TGS.com
(http://www.tgs.com) after the live event.

For more information, visit TGS.com (http://www.tgs.com) or contact:

Sven Børre Larsen
CFO
Tel: +47 90 94 36 73
E-mail: investor@tgs.com

Notes
1 - Percentage-of-completion (PoC) revenue:
PoC revenue are measured by applying the percentage-of-completion method to Early sales, added to Late sales and Proprietary sales. This is based on the principles applied prior to the implementation of IFRS 15, Revenue from Customer Contracts, on 1 January 2018.

Adjustments between IFRS and PoC revenue numbers for Q1 2023:

IFRS reported revenue: USD 173 million
- Revenue recognized from performance obligations met during Q1 2023 for completed
projects: USD 42 million
+ Revenue recognized under POC during Q1 2023: USD 98 million
= POC reported revenue: USD 229 million

Adjustments between IFRS and PoC revenue numbers for Q1 2022:

IFRS reported revenue: USD 132 million
- Revenue recognized from performance obligations met during Q1 2022 for completed
projects: USD 58 million
+ Revenue recognized under POC during Q1 2023: USD 40 million
= POC reported revenue: USD 114 million

Company Summary
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 (OBN) data acquisition, advanced processing and analytics alongside cloud-based data applications and solutions. For more information, visit TGS online at www.tgs.com.

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.

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