TGS: Announces Q3 2021 Results

TGS today reported interim financial results for Q3 2021.

Net IFRS revenues amounted to USD 200 million in Q3 2021, an increase of 243% compared to Q3 2020. EBITDA was USD 167 million, and the operating result was USD 36 million, compared to USD 40 million and USD -90 million, respectively, in Q3 2020.

Net segment revenues (1) amounted to USD 61 million in Q3 2021, compared to USD 81 million in Q3 2020. Segment EBITDA was USD 28 million versus USD 62 million in the same quarter of 2020, while the segment operating result amounted to USD -28 million, the same as in Q3 2020.

Free cash flow (2) amounted to USD 6 million in Q3 2021, up from USD 4 million in Q3 2020. After shareholder distribution of USD 23 million, the cash balance totaled USD 190 million at 30 September 2021. For the first nine months of 2021, free cash flow amounted to USD 108 million, compared to USD -4 million in 2020.

The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 per share and continue its share repurchase program with a remaining value of up to USD 7 million.

“The market conditions for multi-client seismic data continue to be challenging. E&P companies’ 2021 budgets do not allow for much spending beyond what was committed at the start of the year, meaning that the recent oil price increases so far have had little impact on spending levels. However, with the increasing oil price combined with low cost of exploration related services, the value proposition of exploration is approaching all-time-high levels, and we are starting to see some early signs of a recovery,” says Kristian Johansen, CEO of TGS. “I’m pleased with the progress seen in our New Energy Solutions business, where we expect to generate approximately USD 10 million of pro-forma revenues this year.”

A live presentation and webcast of the results and business update, featuring CEO Kristian Johansen and CFO Sven Børre Larsen, will be held at Skøyen Atrium, Askekroken 11, 0277 Oslo, Norway (first floor) at 9:00 am CEST.

Access and registration for online attendees is available by copying and pasting
this link into your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20211028_7/

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)