ASKER, NORWAY (8 February 2018) - TGS reported net revenues of USD 157 million in Q4 2017 driven by strong late sales. Full year 2017 net revenues were USD 492 million. Operating profit for the quarter was USD 52 million, up 23% compared to Q4 2016. This resulted in full year operating profit of USD 97 million, representing 20% of net revenues.
Strong free cash flow of USD 56 million in Q4 2017, up from USD 33 million in Q4 2016, resulted in a cash balance of USD 250 million in addition to an undrawn credit facility of USD 75 million. This industry leading financial performance and strong cash position has enabled TGS to increase the dividend by 33% to USD 0.20 per share.
4th Quarter Highlights
- Consolidated net revenues were USD 157 million, compared to USD 165 million in Q4 2016
- Net late sales totaled USD 143 million, compared to USD 145 million in Q4 2016
- Net pre-funding revenues were USD 11 million, down from USD 17 million in Q4 2016 due to lower investments, funding 41% TGS' operational multi-client investments for the quarter
- Operational multi-client investments were USD 28 million, down from USD 46 million in Q4 2016. In addition, investments from risk-sharing arrangements were USD 10 million, down from USD 42 million in Q4 2016
- Operating profit (EBIT) was USD 52 million (33% of net revenues), up 23% from USD 42 million (25% of net revenues), in Q4 2016
- Cash flow from operations was USD 137 million, up 75% from USD 79 million in Q4 2016
- Free cash flow (after multi-client investments) was USD 56 million, up 68% from USD 33 million in Q4 2016.
- Cash balance at 31 December 2018 was USD 250 million in addition to the undrawn USD 75 million Revolving Credit Facility
- Earnings per share (fully diluted) were USD 0.53, up from USD 0.29 in Q4 2016.
- Quarterly dividend increased to USD 0.20 per share
2017 Full Year Financial Highlights
- Consolidated net revenues were USD 492 million, up 8% from USD 456 million in 2016
- Net late sales totaled USD 369 million, up 11% from USD 333 million in 2016
- Net pre-funding revenues were USD 116 million, up 10% from USD 105 million in Q4 2016, funding 44% TGS' operational multi-client investments for the year
- Operational multi-client investments were USD 260 million, up from USD 220 million in 2016. In addition, investments from risk-sharing arrangements were USD 18 million, down from USD 51 million in 2016
- Operating profit (EBIT) was USD 97 million (20% of net revenues), compared to USD 53 million (12% of net revenues), in 2016
- Cash flow from operations was USD 461 million, up 42% from USD 324 million in 2016
- Free cash flow (after multi-client investments) was USD 123 million, up 35% from USD 91 million in 2016
- Earnings per share (fully diluted) were USD 0.73, up from USD 0.28 in 2016
"TGS delivered industry-leading financial returns in both Q4 and the full year 2017. Our strong free cash flow performance has resulted in our cash balance growing to USD 250 million and enables TGS to increase its quarterly dividend by 33% to USD 0.20 per share," TGS' CEO Kristian Johansen stated.
To access TGS Q3 2017 results information, please use the web links below:
Q4 2017 Presentation and Webcast
Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the results at 09:00 CET at the Felix Konferansesenter, Bryggetorget 3, in Oslo, Norway. The presentation is open to the public and can be followed live on the internet at www.tgs.com.
The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.
Q4 2017 Conference Call
CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 8 February 2018 at 15:00 CET (09:00 ET). Attendees may want to call 5-10 minutes before to ensure registration and access.
- Norwegian attendees are invited to call 800 57933 or +47 2100 2610
- International attendees are invited to call 0800 358 6377 or +44 (0)330 336 9105
- US attendees are invited to call 888-394-8218 or +1 323-794-2149
Participants will need to quote the following confirmation code when dialing into the conference: 6755927.
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 23 50 00 77 or + 800 196 72 (Norway)
- +44 (0) 207 660 0134 or + 0 808 101 1153 (International)
- +1 719-457-0820 or + 888-203-1112 (US)
- Replay access code 6755927 followed by # (pound-sign)
A replay of the conference call will also be available at www.tgs.com.