TGS Announces Second Quarter 2022 Results

Oslo, Norway (July 21, 2022) – TGS today released its interim financial results for the second quarter of 2022.

Total revenue was $230 million in Q2 2022 compared to $72 million in Q2 2021. EBITDA was $197 million and operating income was $31 million compared to $50 million, respectively. million USD and -15 million USD in Q2 2021.

Advancement revenue (PoC) (1) was $136 million in Q2 2022, a significant increase from $54 million in Q2 2021.

Free cash flow (2) was $59 million in Q2 2022, compared to $13 million in Q2 2021. After payment of a dividend of $16 million, the cash balance was $255 million as of June 30, 2022 versus $223 million a year earlier. .

The strong financial position allows TGS to maintain the quarterly dividend at 0.14 USD (1.39 NOK) per share in the second quarter of 2022, while providing the flexibility to execute the strategic M&A transactions announced in early July 2022.

“The second quarter of 2022 was another strong quarter with late sales up 222%, driven by further improvement in activity in border areas and transfer fees. With a cash balance at the end of the quarter of approximately $255 million, in addition to an undrawn revolving credit facility of $100 million, we have a strong financial position that can comfortably fund the recently announced exciting M&A transactions,” said Kristian Johansen , CEO of TGS.

A live webcast of the results and business update, featuring CEO Kristian Johansen, CFO Sven Børre Larsen and EVP Digital Energy Solutions Jan Schoolmeesters, will be broadcast today at 9:00 a.m. CEST.

Online participant access and registration is available via copy-paste
this link in your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20220721_3/

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 Borre Larsen
CFO
Tel: +47 90 94 36 73
Email: [email protected]

Remarks
1 – Turnover by progress (PoC):
PoC revenue is measured by applying the percentage of completion method to early sales, plus late sales and own account sales. This is based on the principles applied before the implementation of IFRS 15, Revenue from customer contracts, as of January 1, 2018.
Adjustments between IFRS and PoC revenue figures for Q2 2022:
IFRS accounting revenue: 230 million USD
– Recognized revenue from performance obligations fulfilled in Q2 for completed projects: $127 million
+ Revenue recognized under PoC during Q2: 33 million USD
= Reported PoC revenue: $136 million

2 – Defined as Operating Cash Flow after organic investments in the multi-client library.

About TGS
TGS provides scientific data and information to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialized services such as advanced processing and analysis, and cloud-based data applications and solutions.

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 on assumptions about future events which may not prove to be accurate. . These factors include TGS’s dependence on a cyclical industry and its major customers, TGS’s ability to continue to expand markets for data licensing, and TGS’s ability to acquire and process data products at costs commensurate with profitability, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the sharp drop in oil prices. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS disclaims any responsibility or obligation to update or change any forward-looking statements for any reason.

  • Presentation TGS Q2 2022

  • Publication of TGS Q2 2022 results

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