TGS 2nd quarter 2010 interim report and 1st half results

2nd QUARTER HIGHLIGHTS

• Consolidated net revenues were USD 112.3 million, a decrease of 10% compared to Q2 2009.
• Net late sales totaled USD 64.6 million, down 24% from Q2 2009.
• Net pre-funding revenues were USD 43.0 million, up 27% from Q2 2009, funding 44% of the Company's operational investments into new multi-client products during Q2 (USD 97.1 million, up 25% from Q2 2009).
• Proprietary revenues of USD 4.7 million, down 20% from Q2 2009.
• Operating profit (EBIT) was USD 33.4 million (30% of Net Revenues), down 38% from Q2 2009. The operating costs in Q2 include non-recurring items of USD 5.7 million related to the termination of the Northern Genesis vessel charter.
• Cash flow from operations was USD 74.1 million, versus USD 44.5 million in Q2 2009.
• Earnings per share (fully diluted) were USD 0.18 compared to USD 0.39 in Q2 2009.

6 MONTHS FINANCIAL HIGHLIGHTS

• Consolidated net revenues were USD 260.6 million, an increase of 34% compared to H1-2009.
• Net late sales from the multi-client library totaled USD 138.0 million, up 21% from USD 114.4 million in 2009.
• Net pre-funding revenues were USD 112.6 million, up 65% from 2009, funding 58% of the Company's operational investments into new multi-client products during H1 (USD 193.3 million, up 37% from H1-2009).
• Proprietary revenues of USD 10.0 million, down 18% from H1 2009.
• Operating profit (EBIT) was USD 92.3 million (35% of Net Revenues), up 24% from USD 74.1 million in 2009.
• Cash flow from operations was USD 180.4 million, versus USD 140.4 million in 2009.
• Earnings per share (fully diluted) were USD 0.58 compared to USD 0.52 in for the same period in 2009.

"As previously noted, our sales in the second quarter were negatively affected by a delay in the announcement of Norway's 21st licensing round as well as some early effects of regulatory uncertainty in the U.S. Gulf of Mexico. In contrast, we have seen increased activity in other areas of operations and we continue to remain optimistic about the longer term fundamentals for our sector", TGS' CEO Robert Hobbs stated.

A presentation of results will be held today, 5 August 2010 at 08.30 hrs CET at Shippingklubben located at Haakon VII's gt 1 in Oslo, Norway.  The presentation is open to the public. The presentation can be followed live on the internet at www.tgsnopec.com streamed by Webcast Norge.

The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites and a recorded version of the presentation will be available shortly thereafter at www.tgsnopec.com.  CEO Robert Hobbs and CFO Kristian Johansen will also host a conference call on 5 August 2010 at 14:00 CET (8:00 AM New York time).  Norwegian attendees are invited to call +47 2316 2190 or 800 19640, International attendees are invited to call 44 (0)20 7806 1951 or 0800 028 1243 and USA attendees are invited to call +1 718 354 1387 or 866 935 4575. Attendees may want to call 5-10 minutes before 14:00 CET (8:00 AM NY) to ensure registration and access.

Participants will need to quote the following confirmation code when dialing into the conference: 4690410.

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 TGS conference call,

• dial +47 2100 0498 (Norway), +44 (0)20 7111 1244 (International)  or +1 347 366 9565 (USA)
• replay access code 4690410 followed by # (pound-sign)

A replay of the conference call will also be available at www.tgsnopec.com