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TGS announces 4Q19 results

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Oilfield Technology,

TGS has reported net segment revenues of US$232 million for 4Q19, a growth of 23% compared to US$188 million in 4Q18. The strong performance was mainly driven by improved sales momentum in Latin America and North America.

EBITDA for 4Q19 was US$194 million excluding restructuring costs of US$5 million (margin of 83%) compared to US$200 million in 4Q18 (margin of 83%).

Cash flow was strong during the quarter and the net cash balance increased to US$323 million compared to US$274 million at the end of 2018. This supports a dividend of US$0.375 per share to be paid in 1Q20, a growth of 39%. Furthermore, TGS continues to deliver return on average capital employed (ROACE) of 19% in 2019, up from 18% a year earlier.

The acquisition of Spectrum is moving ahead as planned and US$20 million in synergies have been identified and are in the process of being realised in 2020.

Kristian Johansen, CEO of TGS, stated: "TGS delivered another solid quarter in 4Q19 despite E&P companies’ continued focus on cost control and capital discipline. I'm particularly pleased to see that we are continuing our strong performance in the Latin America region, where the company is well positioned to continue benefiting from our customers’ need to replenish reserves, targeting prolific and high potential basins. Furthermore, our sales pipeline for 1Q20 looks promising, with high vessel activity combined with solid pre-funding."

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