TGS announces Q2 revenues of USD 140 million

ASKER, NORWAY (30 July 2015) - TGS reports net revenues of USD 140 million in Q2 2015, compared to USD 205 million in Q2 2014. Earnings before interest and taxes (EBIT) totaled USD 36 million, corresponding to an EBIT margin of 26%.  Despite the industry's market challenges and uncertain outlook, TGS reports a backlog of USD 242 million and a cash balance of USD 176 million.

"Demand for seismic data continues to be under pressure and the outlook for improvement in the market remains quite uncertain.  Despite this uncertainty, TGS continues to be uniquely positioned within our industry with a strong balance sheet combined with a flexible asset-light business model," TGS' CEO Robert Hobbs stated. "Our 2015 revenue guidance remains unchanged".

2^nd QUARTER HIGHLIGHTS          

• Consolidated net revenues were USD 140 million, compared to USD 205 million in Q2 2014.
• Net late sales totaled USD 82 million, down 40% from USD 137 million in Q2 2014.
• Net pre-funding revenues were USD 53 million, down 12% from Q2 2014, funding 45% of the Company's operational multi-client investments during Q2 (investments of USD 116 million, up 2% from Q2 2014).
• Proprietary revenues were USD 5 million, compared to USD 8 million in Q2 2014.
• Operating profit (EBIT) was USD 36 million (26% of net revenues), compared to USD 82 million (40% of net revenues) in Q2 2014.
• Cash flow from operations was USD 86 million, compared to USD 66 million in Q2 2014.
• Earnings per share (fully diluted) were USD 0.24, down from USD 0.59 in Q2 2014.

6 MONTHS FINANCIAL HIGHLIGHTS

• Consolidated net revenues were USD 311 million, down from USD 427 million in 2014.
• Net late sales from the multi-client library totaled USD 153 million, down 44% from USD 274 million in 2014.
• Net pre-funding revenues were USD 146 million, up 9% from 2014, funding 52% of the Company's operational multi-client investments during H1 2015 (investments of USD 279 million, up 15% from 2014).
• Proprietary revenues were USD 11 million, compared to USD 19 million in 2014.
• Operating profit (EBIT) was USD 73 million (23% of net revenues), compared to USD 176 million (41% of net revenues) in 2014.
• Cash flow from operations was USD 346 million compared to USD 287 million in 2014, an increase of 21%.
• Earnings per share (fully diluted) were USD 0.52, down from 1.25 in 2014.

Management now expects that 2015 multi-client investments will be approximately USD 490 million, up from the previously guided USD 420 million. This increase in counter-cyclical investment is driven by prepayments associated with the acquisition of the Polarcus data library and a slight acceleration of the Gigante Mexico project.