ASKER, NORWAY (21 April 2016) - TGS reported net revenues of USD 64 million in Q1 2016, compared to USD 172 million in Q1 2015. Operating profit for the quarter was USD -21 million compared to USD 37 million in Q1 2015, reflecting the new amortization policy for seismic surveys (effective from 1 January 2016) which is based on straight-line amortization rather than linked directly to revenues. Strong cash collection and lower investments resulted in positive free cash flow of USD 63 million driving an increased cash balance of USD 210 million. Quarterly dividend is maintained at USD 0.15 per share (subject to renewal of the Board authorization at AGM at 10 May 2016).
1st QUARTER HIGHLIGHTS
"This last quarter has arguably been the most severe of this down cycle and there are currently few tangible signs that a recovery is imminent. With E&P spending likely to decline 20-30% this year we expect the market for seismic data to remain weak throughout 2016. Oil companies are under significant pressure to reduce cost and as a result they are prioritizing their seismic spend in areas where they have current work programs and license obligations. This could result in greater variability of seismic spend between quarters and across regions in the near term. However, the long-term future of our asset-light, multi-client business remains strong. Our focus on cost control, disciplined counter-cyclical investment and balance sheet strength positions TGS to enhance its leading position," TGS' CEO Kristian Johansen stated.
To access TGS Q1 2016 results information click below:
Q1 2016 Conference Call
CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 21 April 2016 at CEST 3:00 PM (EDT 9:00 AM). Attendees may want to call 5-10 minutes before to ensure registration and access.
Participants will need to quote the following confirmation code when dialing into the conference: 4759929.
A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.
A replay of the conference call will be available shortly after. To access replay of the TGS conference call, dial +47 2100 0498 (Norway), 0800 358 7735 or +44 (0)20 3427 0598 (International) or +1 866 932 5017 (US) replay access code 4759929 followed by # (pound-sign).
A replay of the conference call will also be available at www.tgs.com.
TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.
For more information visit TGS online at www.tgs.com .
Forward-looking statements and contact information
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principle customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).
TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY".
For additional information about this press release please contact:
Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73
VP HR & Communication
Tel: +1 713 860 2184
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)