TGS reported net revenues of USD 108 million in Q2 2017, slightly below Q2 2016 but up 25% from Q1 2017. Strong cash flow from operations of USD 59 million was a significant improvement from USD 9 million in Q2 2016. Quarterly dividend will be maintained at USD 0.15 per share.
2nd Quarter Highlights
- Consolidated net revenues were USD 108 million, slightly below USD 114 million in Q2 2016
- Net late sales totaled USD 79 million, compared to USD 84 million in Q2 2016
- Net pre-funding revenues were USD 27 million (an increase of 3% from Q2 2016), funding 46% of TGS’ operational multi-client investments for the quarter
- Operational multi-client investments were USD 59 million in addition to USD 2 million from risk sharing arrangements
- Operating profit (EBIT) was USD 18 million (17% of net revenues), compared to USD 22 million (19% of net revenues) in Q2 2016
- Cash flow from operations was USD 53 million, a significant improvement from USD 9 million in Q2 2016
- Free cash flow (after multi-client investments) was USD 12 million, compared to negative free cash flow of USD -35 million in Q2 2016
- Cash balance at 30 June 2017 was USD 239 million in addition to the undrawn USD 75 million Revolving Credit Facility
- Earnings per share (fully diluted) were USD 0.09, compared to USD 0.17 in Q2 2016
- Quarterly dividend maintained at USD 0.15 per share
- Financial guidance unchanged from 23 May 2017
- New multi-client investments* of approximately USD 260 million
- Additional multi-client investments expected from sales of existing surveys with risk sharing arrangements
- Pre-funding of new multi-client investments* expected to be approximately 40-45%
*New multi-client investments excluding investments related to surveys with risk sharing arrangements
Following the authorization from the Annual General Meeting on 9 May 2017, the Board of TGS NOPEC Geophysical Company ASA has resolved to distribute a quarterly dividend of the NOK equivalent of USD 0.15 per share (NOK 1.19 per share).