TGS: Q3-17 Results with revenues up 25%
TGS reported net revenues of USD 142 million in Q3 2017, up 25% from Q3 2016. Operating profit for the quarter was USD 26 million, up from USD 11 million in Q3 2016. Cash flow from operations was USD 86 million resulting in a cash balance of USD 205 million in addition to an undrawn credit facility of USD 75 million. Quarterly dividend will be maintained at USD 0.15 per share.
3rd Quarter Highlights
- Consolidated net revenues were USD 142 million, up 25% from USD 113 million in Q3 2016
- Net late sales totaled USD 79 million, up 18% from USD 67 million in Q3 2016
- Net pre-funding revenues were USD 62 million (an increase of 58% from Q3 2016), funding 54% of TGS’ operational multi-client investments for the quarter
- Operational multi-client investments were USD 114 million in addition to USD 1 million from risk sharing arrangements and USD 5 million of non-operational investments
- Operating profit (EBIT) was USD 26 million (18% of net revenues), compared to USD 11 million (10% of net revenues) in Q3 2016
- Cash flow from operations was USD 86 million, compared to USD 91 million in Q3 2016
- Free cash flow (after multi-client investments) was USD -19 million, compared to USD 29 million in Q3 2016. Year to date free cash flow stands at USD 67 million.
- Cash balance at 30 September 2017 was USD 205 million in addition to the undrawn USD 75 million Revolving Credit Facility
- Earnings per share (fully diluted) were USD 0.09, compared to USD 0.02 in Q3 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
“We are pleased with our third quarter results, including revenue growth of 25% from last year and continued strong profitability. Our strong balance sheet allows us to continue to invest in profitable projects and we acquired record high data volumes in Q3. At the same time, we are continuing to pay a quarterly dividend to our shareholders. With a solid financial position combined with a diversified data library, TGS is uniquely positioned to enhance its status as the world’s leading multi-client geophysical company,” TGS’ CEO Kristian Johansen stated.