Norway (29 August 2024) - TGS is adapting to a changing energy market and the company now has a fully integrated offering across the energy data value chain. The multi-client library has unparalleled data coverage across mature, emerging and frontier basins worldwide. Leading data acquisition capabilities with eight fully equipped high-quality GeoStreamer vessels. Advanced OBN technology with leading operational track record. Scalable imaging capabilities for streamer and nodes with on-prem and in the cloud compute capacity. A strong position in offshore wind site characterization market and well positioned for extensive growth in the carbon storage and solar markets.
In the capital markets day presentation, TGS announces:
- The Company’s strategic priorities of Value, Resilience and Knowledge.
- To create more Value TGS intends to enhance the company’s leading position in key basins, capitalize on the integrated structure to build strategic relationships with clients and governments, and become client’s preferred Imaging partner.
- TGS is building Resilience by strengthening diversification into new energy markets, sets new standards for HSE and maintains a strong balance sheet, cost efficiency and scalability.
- TGS is accelerating Knowledge by technology development across the value chain, extracting incremental information from AI applications and be the preferred employer in the energy data industry.
- Integration synergies are increased from original target of USD 90-110 million to USD 110-130 million.
- Capital allocation priorities include disciplined organic investments, maintain a strong balance sheet and aim at net interest bearing debt in the range of USD 250-350 million. TGS has an ambition of growing distribution to shareholders by paying a stable dividend, and plan for additional distribution through share buybacks whilst keeping net-debt within indicated range.
- TGS future reporting structure will focus on produced (POC) in segment reporting. The segments reported on will be Multi-client, Contract, Imaging and New Energy Solutions (NES).
- TGS updated 2024 guidance is multi-client investments in the range of USD 450-500 million, in line with previous guidance from TGS and PGS after aligning accounting principles.
"By adapting to the evolving energy data market trends, TGS has established a strong strategic position. With leading edge technology and acquisition solutions spanning the entire energy data value chain we offer a comprehensive range of insights to help our clients make better decisions. We have a strong foundation to grow our revenues and improve our cash flow by successfully executing on our strategic priorities of Value, Knowledge and Resilience," says Kristian Johansen, CEO of TGS. "I'm excited about the TGS-PGS merger and the ongoing integration process, which is progressing according to plan. Already by the end of this year we expect a synergy run rate of approximately USD 60 million, and we have increased our total synergy target from USD 90-110 million to USD 110-130 million by the end of 2025.”
The capital markets day presentation starts at 14:00 CEST and takes place at House of Oslo Conference Center, Ruseløkkveien 34, Oslo, Norway,
After management’s concluding remarks at approximately 16:00 CEST, we invite attendees to join us for refreshments at House of Oslo conference center.
Please register your physical attendance by emailing
investor@tgs.com or view a live webcast by copying and pasting the link below into your browser, a replay will be available shortly after:
About TGS
TGS provides advanced data and intelligence to companies active in the energy sector. With leading-edge technology and solutions spanning the entire energy value chain, TGS offers a comprehensive range of insights to help clients make better decisions. Our broad range of products and advanced data technologies, coupled with a global, extensive and diverse energy data library, make TGS a trusted partner in supporting the exploration and production of energy resources worldwide. For further information, please visit
www.tgs.com.
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 volatile market conditions, investment opportunities in new and existing markets, demand for licensing of data within the energy industry, operational challenges, and reliance on a cyclical industry and principal customers. 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.
For more information, visit TGS.com or contact:
Bård Stenberg
IR & Communication
Mobile: 992 42 235