TGS has released its 2Q15 results, reporting net revenues of $US140 million. This sum represents a decrease of US$65 million when compared to its 2Q14 sum of US$205 million.
Earnings before interest and taxes (EBIT) totalled US$36 million, corresponding to an EBIT margin of 26%.
Alongside a decrease in net revenues, from US$205 million to US$140 million, net late sales totalled US$82 million, down 40% from US$137 million in 2Q14. Net pre-funding revenues were down 12% from 2Q 2014, at US$53 million and proprietary revenues totalled US$5 million, compared to US$8 million in 2Q14.
A further decrease were seen in TGS’ cash flow from operations, at US$86 million, compared to US$66 million in 2Q14.
1H15 financial highlights
Baring the above in mind, TGS’ has also released its consolidated results for 1H15. Net revenues totalled US$311 million, down from US$427 million in 1H14, net late sales from the multi-client library totalled US$153 million, down 44% from US$274 million in 1H14.
Proprietary revenues reached US$11 million, compared to a total of US$19 million in 1H14.
Meanwhile, net pre-funding revenues totalled US$146 million, up 9% from 1H14 and cash flow from operations increased by 21%, from US$287 million in 1H14, to US$346 million in 1H15.
Looking into the future
TGS management expects that 2015 multi-client investments will be approximately US$490 million, up from the previously guided US$420 million.
Demand for seismic data continues to be under pressure
"Demand for seismic data continues to be under pressure and the outlook for improvement in the market remains quite uncertain. Despite this uncertainty, TGS continues to be uniquely positioned within our industry with a strong balance sheet combined with a flexible asset-light business model," TGS' CEO Robert Hobbs stated. "Our 2015 revenue guidance remains unchanged".
Adapted from press release by David Bizley