TGS has announced its Q2 2025 results. The Company reported that Q2 2025 results were negatively impacted by several factors,with several data licensing deals being postponed and low client commitment to ongoing projects. To reduce operating expenses TGS has announced it is in the process of selling the Ramform Explorer and the Ramform Valiant, and stacking the Ramform Vanguard.
Financial highlights:
- Multi-client revenues impacted by several library data purchases being postponed and low client commitment to ongoing projects
- Challenging operational conditions for a large contract project and lower than expected JV partner participation for certain multi-client programs negatively affected contract revenues
- Order inflow of USD 133 million during Q2 2025 – total order backlog of USD 425 million
- Net cash flow of USD 11 million in Q2 2025, compared to USD -13 million in Q2 2024
- Maintaining a stable dividend payment of USD 0.155 per share to be paid in Q3 2025
- Gross operating costs for 2025 expected to be approximately USD 950 million compared to previous guidance of approximately USD 1,000 million – reduction driven by further efficiency gains and vessel scheduling
'The Q2 2025 results were negatively impacted by several factors. End-of-quarter data licensing came in below expectations, . Further, we encountered challenging operational conditions on one of our streamer projects, negatively impacting revenue recognition. Finally, lower-than-expected partner participation in certain multi-client projects resulted in lower recognition of contract revenues and higher multi-client investments. The guidance for gross operating expenses has been reduced further, as we continue to review our cost base and optimize asset allocation. We are in the process of selling the Ramform Explorer and the Ramform Valiant, and stacking the Ramform Vanguard. Although significant macroeconomic uncertainty and high oil price volatility during Q2 caused our clients to be more cautious in the short term, the long-term need for more exploration remains intact. With falling remaining reserve life, many large E&P companies will face declining production rates unless more reserves are added and brought on stream. As a result, we remain optimistic for the long-term opportunities for TGS,' says Kristian Johansen, CEO of TGS.
Source: TGS
