TGS has reported interim financial results for Q3 2025.
Financial highlights:
- Recovery after weak second quarter - Q3 revenues of USD 388 million, a 26% sequential growth
- Solid multi-client performance with sales-to-investment of 1.9x year-to-date
- Order inflow of USD 436 million during Q3 2025 - total order backlog of USD 473 million
- Strong cash flow reducing net debt to USD 432 million, compared to USD 479 million at the end of Q2 2025
- Solid balance sheet allows for stable dividend payment of USD 0.155 per share to be paid in Q4 2025
- Continued scrutiny of cash outflow - capex guidance for 2025 reduced to USD 110 million from USD 135 million
'In a quarter marked by macroeconomic uncertainty and volatile oil prices, we are pleased to report solid financial results. Our multi-client segment performed well, primarily driven by strong library sales. Higher-than- anticipated asset utilization and continued robust growth in imaging activity contributed to contract revenues exceeding our initial expectations. Additionally, strong cash flow led to a significant reduction in net debt, reinforcing our financial resilience and dividend capacity. While we continue to observe encouraging signals in ongoing client discussions, the short-term outlook remains uncertain due to pressure on E&P companies' cash flows from low oil prices. Nevertheless, we remain confident in the long-term outlook, as increased investments in new oil and gas resources will be essential to meet long-term demand forecasts,' says Kristian Johansen, CEO of TGS.
Source: TGS
