TGS announces revenues of US$ 205 million

TGS has reported net revenues of US$ 205 million in Q2 2014, compared to US$ 210 million in Q2 2013.

Earnings before interest and taxes (EBIT) totaled US$ 82 million, corresponding to an EBIT margin of 40%. The company's net pre-funding revenues were US$ 60 million, up 39% from Q2 2013. Backlog of US$ 224 million remains near an all-time high level.

Highlights

• Consolidated net revenues were US$ 205 million, compared to US$ 210 million in Q2 2013.
• Net late sales totaled US$ 137 million, down 12% from US$ 155 million in Q2 2013.
• Net pre-funding revenues were US$ 60 million, up 39% from Q2 2013, funding 52% of the company's operational multi-client investments during Q2 (investments of US$ 114 million, up 4% from Q2 2013).
• Proprietary revenues were US$ 8 million, compared to US$ 12 million in Q2 2013.
• Operating profit (EBIT) was US$ 82 million (40% of net revenues), compared to US$ 98 million (47% of net revenues) in Q2 2013.
• Cash flow from operations was US$ 66 million, compared to US$ 34 million in Q2 2013. In Q2 2013, the Company made an extraordinary tax payment of US$ 58 million.
• Earnings per share (fully diluted) were US$ 0.59, down from US$ 0.66 in Q2 2013.

Commentary

Commenting on the results, TGS CEO, Robert Hobbs, said: "Despite restricted near-term exploration spending as well as the delayed announcement of the blocks for the Norwegian 23rd licensing round, TGS continues to deliver strong results.

“Both sales from the existing data library and customer commitments for new projects were strong and our backlog remains near an all-time high level. TGS continues to be well positioned to deliver the data needed by the industry to identify new reserves. TGS has a strong commitment to deliver shareholder returns through a combination of growth, dividends and share buy-backs."

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/31072014/tgs-reports-on-q2-2014-results-228/