TGS announces Q3 revenues of USD 190 million

ASKER, NORWAY (23 October 2014) - TGS reports net revenues of USD 190 million in Q3 2014, compared to USD 191 million in Q3 2013. Earnings before interest and taxes (EBIT) totaled USD 71 million, corresponding to an EBIT margin of 38%. Cash flow from operations was USD 184 million, an increase of 57% from Q3 last year.  A record Q3 backlog of USD 260 million was reported.

3^rd QUARTER HIGHLIGHTS

• Consolidated net revenues were USD 190 million, compared to USD 191 million in Q3 2013.
• Net late sales totaled USD 130 million, down 6% from USD 138 million in Q3 2013.
• Net pre-funding revenues were USD 51 million, up 17% from Q3 2013, funding 55% of the Company's operational multi-client investments during Q3 (investments of USD 93 million, down 17% from Q3 2013).
• Proprietary revenues were USD 9 million, compared to USD 9 million in Q3 2013.
• Operating profit (EBIT) was USD 71 million (38% of net revenues), compared to USD 80 million (42% of net revenues) in Q3 2013.
• Cash flow from operations was USD 184 million, compared to USD 118 million in Q3 2013.
• Earnings per share (fully diluted) were USD 0.53, down from USD 0.54 in Q3 2013.

9 MONTHS FINANCIAL HIGHLIGHTS

• Consolidated net revenues were USD 617 million, up from USD 612 million in 2013.
• Net late sales from the multi-client library totaled USD 405 million, down 4% from USD 420 million in 2013.
• Net pre-funding revenues were USD 185 million, up 30% from 2013, funding 55% of the Company's operational multi-client investments during the first nine months of 2014 (investments of USD 336 million, down 3% from 2013).
• Proprietary revenues were USD 28 million, compared to USD 50 million in 2013.
• Operating profit (EBIT) was USD 247 million (40% of net revenues), compared to USD 267 million (44% of net revenues) in 2013.
• Cash flow from operations was USD 473 million compared to USD 330 million in 2013, an increase of 44%.
• Earnings per share (fully diluted) were USD 1.78, same as in 2013.

"We are pleased to announce Q3 revenues in line with Q3 2013 despite a challenging market with lower oil prices and continued downward pressure on exploration spending. TGS continues to see good investment opportunities and will capitalize on our asset-light business model and strong balance sheet. Our record high back-log at the end of Q3 positions the company well to continue to deliver high quality data needed by the industry to identify new reserves," TGS' CEO Robert Hobbs stated.