Net segment revenues for the quarter amounted to US$80.6 million, made up by pre-funding revenues of US$17.4 million, late sales of US$60.7 million, and proprietary revenues of US$2.5 million. Net segment revenues for the corresponding quarter of 2019 were US$276.7 million.
Personnel costs and Other operating costs (‘cash operating costs’) for the quarter totalled US$17.3 million, a reduction of 64% compared to 3Q19.
EBITDA came in at US$62.2 million, down from US$224.9 million in 3Q192. The operating result for the third quarter was US$-27.9 million, compared to US$102.5 million last year.
Free cash flow was US$4.5 million for 3Q20 compared to US$-35.6 million in 3Q19. As a result, the cash balance on 30 September 2020 was US$180 million, supporting a continued dividend of US$0.125 per share.
CEO Kristian Johansen said: “With our asset-light business model characterised by a low proportion of fixed cost, TGS is well-positioned to manage cyclical downturns and even prolonged periods of lower demand. To further strengthen our cash flow capacity, we have completed a major cost cutting programme with cash operating cost reduced by 64% compared to 3Q19. As such, we are well prepared to maintain our counter-cyclical investment approach at the same time as continuing to pay dividends to shareholders.”
Read the latest issue of the magazine in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.