ASKER, NORWAY (1 November 2018) - TGS reported net revenues of USD 141 million in Q3 2018, compared to USD 142 million in Q3 2017. TGS continued to see improvement in late sales which at USD 106 million were up 35% compared to Q3 2017. Operating profit for the quarter was USD 24 million (17% of net revenues) and net income was USD 17 million resulting in earnings per share of USD 0.16, a growth of 78% year-on-year.
With a strong cash balance of USD 322 million, TGS maintains its quarterly dividend at USD 0.20 per share, up 33% from Q3 2017.
3rd Quarter Highlights - Segment Reporting
*New multi-client investments excluding investments related to surveys with risk-sharing arrangements
"TGS has grown net revenues by 29% in the first nine months of 2018. However, E&P companies have for the most part maintained a cautious approach to exploration spending and a large part of the increased revenues is related to acreage turnover, either through M&A between E&P companies or asset swaps and purchases. With the market fundamentals continuing to improve, E&P companies are likely to come under increasing pressure to replenish reserves and secure growing production in the longer-term. Furthermore, many smaller E&P companies which paused spending during the downcycle, will ultimately return to exploration as they move back to a growth agenda. As a result, exploration budgets are likely to increase from the current unsustainably low levels.
TGS is well positioned to benefit from improved market conditions going into 2019, supporting further investment growth. TGS' counter-cyclical investment during the downturn, with high volumes of data acquired at record-low cost, bodes well for continued industry-leading return on capital going forward," TGS' CEO Kristian Johansen stated.