Seismic service companies have reported healthier fourth quarter 2019 results as a result of sustained improvements in funding for seismic surveys.
Seismic service companies have reported healthier fourth quarter 2019 results as a result of sustained improvements in funding for seismic surveys.
TGS has reported net segment revenues of $232 million for Q4 2019, a growth of 23% compared to $188 million in Q4 2018. The company said the improvement was driven by improved sales in Latin America and North America.
Net cash balance increased to $323 million compared to $274 million at the end of 2018. TGS said that the acquisition of Spectrum is moving ahead as planned and $20 million in synergies are in the process of being realized in 2020.
Kristian Johansen, CEO of TGS, said: ‘TGS delivered another solid quarter in Q4 2019 despite E&P companies’ continued focus on cost control and capital discipline. I’m particularly pleased to see that we are continuing our strong performance in the Latin America region, where the company is well positioned to continue benefiting from our customers’ need to replenish reserves, targeting prolific and high potential basins. Furthermore, our sales pipeline for Q1 2020 looks promising.’
Meanwhile, PGS has reported 2019 fourth quarter net profit of $28.5 million on segment revenues of $288 million, compared with a net loss of -$4.8 million on segment revenues of $245 million in the fourth quarter of 2018.
Operating profit of $54 million in Q4 was up from $26 million in Q4 2018.
For the full year of 2019 PGS reported a net loss of -$72 million on segment revenues of $880 million. This compared to a net loss of -$88 million on segment revenues of $834.5 million in 2018. Full year operating profit was $54 million compared to $26 million in 2018.
‘The seismic market continued to strengthen during 2019, resulting in better vessel utilization and higher contract prices,’ said Rune Olav Pedersen, president and chief executive officer. ‘Our strong position in the 4D market and integrated product offering accelerated our contract revenues and we achieved close to 40% higher pricing in 2019, compared to 2018.
‘Higher project activity enabled us to continue operating eight vessels. We experienced low multi-client sales during the first half of the year, but performance substantially improved in the second half. The pre-funding level ended at 105% of capitalized multi-client cash investments for the full year, and we managed to secure healthy sales in the fourth quarter from our multi-client data library. Our order book nearly doubled during 2019, compared to year-end 2018.’
CGG reported $26 million net income on fourth quarter revenues of $426 million, compared to a loss of -$790 million on revenues of $370 in the fourth quarter of 2018. Net income from continuing operations in Q4 2019 was $63 million.
Q4 Geology, Geophysics and Reservoir revenue of $275 million was down on $333 million in Q4 2018. Multi-client revenue of $169 million was down on $224 million in Q4 2018.
Fourth quarter 2019 equipment revenue of $123.5 million was up from $109 million in Q4 2018.
The company reported a full-year net loss of -$61.5 million on revenues of $1.4 billion compared with a 2018 net loss of -$96 million on revenues of $1.227 billion.
CGG’s backlog at the end of February 2020 was $537 million, up 34% year on year. Liquidity was $611 million.
Sophie Zurquiyah, CEO of CGG, said: ‘After our exit from the Acquisition business, CGG’s new asset-light profile is significantly more resilient through the cycles.’
Polarcus has reported a Q4 net loss of -$15.3 million on segment revenues of $55.3 million, compared to net loss of -$13.3 million on revenues of $58.4 million in Q4 2018. EBITDA of $7.6 million, is up from $2.5 million in Q4 2018.
Vessel utilization of 71%, compared to 96% in Q4 2018, but seven new contracts have been secured since the end of Q3 2019. Current backlog of $240 million is the highest level since 2014
Full year 2018 segment revenues of $290.6 million were up from $202.2 million in 2018 as a result of significantly improved day rates. Segment EBIT of $28 million, is up from a negative -$19.8 million in 2018. Full year net loss was -$10 million compared to -$32 million in 2018.
Robust levels of tender activity and increased contract pricing throughout 2019 were driven by solid demand from both E&P companies and the growing number of multi-client companies without vessels.
The company’s fleet is 100% booked into late Q2 2020 and 65% booked for full year 2020.
