TGS has reported interim financial results for Q2 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 241 million compared to 136 million in Q2 2022
- POC EBITDA of USD 132 million versus USD 103 million in Q2 2022
- POC operating result was USD 39 million compared to USD 42 million in Q2 2022.
- Multi-client contract inflow of USD 180 million during Q2 2023 compared to USD 156 million in Q2 2022 – total POC order backlog including Acquisition of USD 417 million
- Strong performance by the Acquisition business unit – gross revenues of USD 114 million, 10% increase compared to Q2 2022 pro-forma
- Dividend of USD 0.14 (NOK 1.41) per share to be paid in Q3 2023
- IFRS revenues (1) of USD 206 million versus USD 230 million in Q2 2022
- IFRS EPS (fully diluted) of USD 0.18 versus USD 0.22 in Q2 2022
'E&P companies have focused their exploration spending on non-discretionary categories in the first half of the year, prioritizing drilling, infrastructure-led exploration, and 4D, as well as fulfilling work commitments. TGS has been well positioned to benefit from this, as evidenced by strong growth in multi-client early sales and Acquisition revenues. We continue to see robust inflow of prefunding for new multi-client projects, and we are confident that full-year multi-client investments will be well above USD 350 million, with an early sales rate in excess of 70%. Our late sales were up 37% sequentially in Q2 2023 and were also significantly higher than in Q2 2022, after adjusting for transfer fees related to M&A activity among customers. Q2 clearly demonstrates the benefits of our more diversified business model, and I’m particularly pleased to see that our Acquisition business is performing ahead of expectation in terms of revenues, profitability and synergy realization,' says Kristian Johansen, CEO of TGS.
(1) Percentage-of-completion (PoC) revenue:
PoC revenue are measured by applying the percentage-of-completion method to Early sales, added to Late sales and Proprietary sales. This is based on the principles applied prior to the implementation of IFRS 15, Revenue from Customer Contracts, on 1 January 2018.
Source: TGS
