TGS Announces Q1 2023 Results
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.
