TGS announces Q2 2017 Results

ASKER, Norway, Aug. 03, 2017 (GLOBE NEWSWIRE) -- TGS reported net revenues of USD 108 million in Q2 2017, slightly below Q2 2016 but up 25% from Q1 2017. Strong cash flow from operations of USD 59 million was a significant improvement from USD 9 million in Q2 2016. Quarterly dividend will be maintained at USD 0.15 per share. 

2nd Quarter Highlights

• Consolidated net revenues were USD 108 million, slightly below USD 114 million in Q2 2016
• Net late sales totaled USD 79 million, compared to USD 84 million in Q2 2016 
• Net pre-funding revenues were USD 27 million (an increase of 3% from Q2 2016), funding 46% of TGS' operational multi-client investments for the quarter
• Operational multi-client investments were USD 59 million in addition to USD 2 million from risk sharing arrangements
• Operating profit (EBIT) was USD 18 million (17% of net revenues), compared to USD 22 million (19% of net revenues) in Q2 2016
• Cash flow from operations was USD 53 million, a significant improvement from USD 9 million in Q2 2016
• Free cash flow (after multi-client investments) was USD 12 million, compared to negative free cash flow of USD -35 million in Q2 2016
• Cash balance at 30 June 2017 was USD 239 million in addition to the undrawn USD 75 million Revolving Credit Facility
• Earnings per share (fully diluted) were USD 0.09, compared to USD 0.17 in Q2 2016
• Quarterly dividend maintained at USD 0.15 per share
• Financial guidance unchanged from 23 May 2017:
  - New multi-client investments* of approximately USD 260 million
  - Additional multi-client investments expected from sales of existing surveys with risk sharing arrangements
  - Pre-funding of new multi-client investments* expected to be approximately 40-45%
  
  *New multi-client investments excluding investments related to surveys with risk sharing arrangements

"Despite the challenging market conditions, customers have, to an increasing extent been willing to support quality project ideas. As such, TGS has been able to increase the order backlog substantially since the beginning of the year. In the 3rd quarter the activity with respect to data acquisition volumes will be at historically high levels and the investment and pre-funding levels are set to increase significantly from the levels experienced so far this year," TGS' CEO Kristian Johansen stated.

To access TGS Q2 2017 results information, please use the web links below: 

• Earnings Release
• Presentation Slides

Q2 2017 Presentation and Webcast 
Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the results at 9.00 am CEST at the Hotel Continental, Stortingsgata 24/26 in Oslo, Norway. The presentation is open to the public and can be followed live on the internet at www.tgs.com.

The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.

Q2 2017 Conference Call

CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 3 August 2017 at 3.00 pm CEST (9.00 pm EDT).   Attendees may want to call 5-10 minutes before to ensure registration and access.

• Norwegian attendees are invited to call +800 51084 or +47 2100 2610
• International attendees are invited to call 0800 358 6377 or + 44 (0)330 336 9105
• US attendees are invited to call +1 866 548 4713 or +1 719 325 2213

Participants will need to quote the following confirmation code when dialing into the conference: 5950879.

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 23 50 00 77 or +800 196 72 (Norway), +44 (0) 207 660 0134 or +0 808 101 1153 (International) or +1 719 457 0820 or +888 203 1112 (US)
• replay access code 5950879 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 (OSLO:TGS).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY".

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).

Files accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/5adff388-b563-4ecf-a8ff-7f6cf47aa3c2

http://www.globenewswire.com/NewsRoom/AttachmentNg/7546a3af-dc35-4eae-9153-4623cff41206

For additional information about this press release please contact: 

Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73
Email: sven.larsen@tgs.com

Will Ashby
VP HR & Communication
Tel: +1 713 860 2184 
Email: will.ashby@tgs.com