TGS reports interim financial results for Q1 2025.
Financial highlights:
- Strong multi-client performance driven by high interest for data in frontier areas
- Multi-client investment of USD 130 million supported by solid pre-commitments from clients
- Significant year-over-year improvement in asset utilization secured solid contract revenues
- Order inflow of USD 302 million during Q1 2025 – total order backlog of USD 600 million
- Strong cash flow reducing net debt to USD 453 million from USD 500 million at the end of 2024
- Solid balance sheet allows for stable dividend payment of USD 0.155 per share to be paid in Q2 2025
- Guidance for gross operating expenses and capital expenditures lowered to approximately USD 1,000 million and approximately USD 135 million, respectively, in response to increased macro uncertainty
'We are pleased about the strong financial performance in Q1 2025. The multi-client segment significantly exceeded expectations, primarily as a result of strong sales of vintage library data in frontier areas. A sales-to-investment ratio above 2x (pro-forma) over the past four quarters illustrates the attractiveness of the multi-client model and the benefit of having the world’s largest and most diversified data library. We are also pleased about the contract performance in the quarter, with significant year-on-year improvement of asset utilization.
Although the recent oil price weakness adds uncertainty in the short term, the long-term outlook remains positive. At current spending levels most E&P companies struggle to replace reserves, and more exploration is needed to maintain production,' says Kristian Johansen, CEO of TGS.
Source: TGS
