TGS reports interim financial results for Q3 2024.
Financial highlights:
- Merger with PGS completed on 1 July 2024 – Q3 2024 first quarter including PGS
- Strong multi-client sales driven by a combination of solid pre-commitments for new investments and increased sales of existing data supported by material transfer fees
- Record-high OBN contract activity – utilization of streamer fleet improving on high bid activity
- Continued growth in New Energy Solutions
- Full-year pro-forma organic multi-client investments lowered to USD 425-450 million as certain projects have been deferred into 2025
- Order inflow of USD 423 million during Q3 2024 – total produced backlog of USD 750 million
- Significant upgrades of credit ratings by S&P and Moody’s
- Robust balance sheet allows for continued dividend payment - USD 0.14 per share to be paid in Q4 2024
'Q3 2024 was the first quarter after completion of the TGS-PGS merger, and I am pleased to report revenues of half a billion dollars. We have completed the merger reorganization process, and we are ahead of schedule in realizing annual synergies of between USD 110 and 130 million. Strong multi-client revenues in the quarter were driven by a combination of robust pre-commitments to ongoing programs and strong library sales supported by material transfer fees. Further, we achieved record high utilization of our OBN crews, and the business continues its strong performance among a production-oriented client base. Although the utilization of the 3D streamer fleet has been lower than expected so far this year, we are on a positive trend based on ongoing negotiations and tenders. Finally, I’m pleased to see that our solid balance sheet and sound financial policy has prompted substantial upgrades to the credit ratings by both Moody’s and S&P which puts us in good position to refinance the debt structure at attractive terms,' says Kristian Johansen, CEO of TGS.
Source: TGS
