TGS releases 1Q20 results
Published by Nicholas Woodroof,
Editor
Oilfield Technology,
The quarter saw solid pre-funding revenues driven by Latin America and North America onshore, while late sales were hurt by the Covid-19 crisis and the large oil price drop towards the end of the quarter.
At US$125 million, EBITDA in 1Q20 came in 1% above 1Q19 as a result of favourable development in operating costs.
The company had a cash holding of US$248 million at 31 March 2020, allowing the company to pay a dividend of US$0.125 per share in 2Q20, despite the challenging market conditions.
On 8 April 2020 TGS announced several measures in response to the market turmoil. The highlights are:
- Cost reduction: Centralisation of offices, a global salary freeze, temporary cessation of employee bonuses and right sizing of the organisation leading to a 2020 cost base that is approximately 35% below the 2019 pro-forma numbers.
- Multi-client investments: 2020 guidance reduced to approximately US$325 million from US$450 million by postponing projects and reducing scope.
- Dividends: 2Q20 dividend reduced to US$0.125 per share from US$0.375 per share in 1Q20.
Read the article online at: https://www.oilfieldtechnology.com/exploration/13052020/tgs-releases-1q20-results/
You might also like
Halliburton launches Intelli portfolio of wireline conveyed diagnostic well intervention services
Halliburton Company has announced it has introduced the Intelli suite of diagnostic well intervention wireline logging services.
