OSLO, Norway (12 May 2021) - TGS today reported interim financial results for Q1 2021.
Net IFRS revenues amounted to USD 186 million in Q1 2021, an increase of 256% compared to Q1 2020. EBITDA was USD 162 million and the operating result was USD 69 million, compared to USD 26 million and USD -58 million, respectively, in Q1 2020.
Net segment revenues (1) amounted to USD 75 million in Q1 2021, compared to USD152 million in Q1 2020. Segment EBITDA was USD 51 million versus USD 126 million in the same quarter of 2020, while the segment operating result amounted to USD -20 million, compared to USD - 19 million in Q1 2020.
Free-cash flow (2) amounted to USD 84 million in Q1 2021, up from USD 1 million in Q1 2020. Including shareholder distribution of USD 19 million the cash holding increased by USD 58 million to USD 254 million on 31 March 2021.
The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 per share and continue its share repurchase program with a remaining value of up to USD 17 million.
“Despite a substantial increase in the oil price over the past six months, exploration spending remains muted. Our clients are indicating that their strong cash flow will mainly be directed at dividends, share buybacks and deleveraging balance sheets. While we remain cautiously optimistic for a pick-up in activity towards the end of the year, we expect our near-term organic multi-client investments to be lower, partly due to use of supplier risk-sharing and JVs. As a result, we continue to add high volumes of data to our library and generate strong cash flow,” says Kristian Johansen, CEO of TGS.
“Our New Energy Solutions initiative is progressing rapidly, and we are excited to announce 4C Offshore as the first acquisition in the renewable area. The acquisition fits perfectly with our ambition to become the leading global provider of energy data and insights to support decision-making processes across the energy value chain.”
Based on the above, 2021 guidance is revised as follows:
About TGS
TGS provides scientific data and intelligence to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialized services such as advanced processing and analytics alongside cloud-based data applications and solutions.
Forward Looking Statement
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 principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data product at costs commensurate with profitability, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the severe drop in oil prices. 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.