Skip to main content

TGS Q1 2021 Earnings Update

Written by Customer Service on . Posted in Public Companies.

OSLO Norway (13 April 2021) – Based on preliminary reporting from operating units, TGS management expects net IFRS revenues* for the first quarter of 2021 to be approximately USD 186 million, up from USD 52 million in Q1 2020. Net segment revenues* are expected to be approximately USD 75 million, compared to USD 152 million in Q1 2020.

Kristian Johansen, CEO at TGS, stated, “As expected the challenging market conditions continued in Q1 2021. However, we remain cautiously optimistic for the remainder of the year, with the higher oil prices expected to result in higher activity level in the latter part of the year. Furthermore, I am pleased to note that we continue to outperform our cost expectations, which together with relatively low investments of approximately USD 37 million, resulted in a solid free cash flow and a cash balance in excess of USD 250 million at quarter close. Thus, our confidence in a strong cash flow development for the year continues to grow.”

TGS will report the Q1 2021 financial results on 12 May 2021. 

* Following recent notification from The Financial Supervisory Authority of Norway (Finanstilsynet) TGS will from 2021 increase emphasis on IFRS in its financial reporting to the market. The Company will continue to provide segment information for historic comparison and as alternative performance measures of the business as such measures are commonly used throughout the industry, and TGS’ management believes they better reflect the ongoing activity in projects-in-progress. The main difference between IFRS and Segment reporting relates to revenue recognition. Under IFRS revenue recognition generally is deferred until project completion and delivery to the customer when performance obligations are met. Under Segment reporting, net revenue from projects-in-progress is recognized based on Percentage of Completion (POC). Revenue recognition has subsequent effects on the recognition of amortization of the multi-client library. Please see annual report for a complete description of the Company’s accounting principles.

Adjustments between preliminary IFRS and Segment revenue numbers for Q1 2021:

Preliminary IFRS reported revenue: USD 186 million
– Revenue recognized from performance obligations met during Q1 for completed projects: USD 157 million
+ Revenue recognized under POC during Q1: USD 46 million
= Preliminary net segment reported revenue: USD 75 million

For more information, visit TGS.com or contact:

Sven Børre Larsen
SVP Strategy
Tel: +47 90 94 36 73
E-mail: investor@tgs.com

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.