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/