TGS has reported first quarter net profit of $42.5 million on revenues of $186 million compared with a net loss of $30 million on revenues of $52 million in Q1 2020.
TGS has reported first quarter net profit of $42.5 million on revenues of $186 million compared with a net loss of $30 million on revenues of $52 million in Q1 2020.
Operating profit was $69 million compared to an operating loss of $58 million in the first quarter of 2020.
Net segment revenues amounted to $75 million in Q1 2021, compared to $152 million in Q1 2020.
Organic multi-client investments were $36.5 million, compared with $138 million in the first quarter of 2020. Prefunding revenues of $25 million compared to $83 million in the first quarter of 2020. Late sales of $45 million in Q1 compared to $63 million in Q1 2020.
TGS’ backlog at end of quarter was $82 million compared to $89 million in Q1 2020.
Free-cash flow amounted to $484 million in Q1 2021, up from $1 million in Q1 2020. The cash holding increased by $58 million to $254 million on 31 March 2021.
‘Despite a substantial increase in the oil price over the past six months, exploration spending remains muted. Our clients are indicating that their strong cash flow will mainly be directed at dividends, share buybacks and deleveraging balance sheets. Consequently, the market for subsurface data and insights is likely to remain challenging in the near term, which in turn influences the risk level of the multi-client investments we will pursue for the remainder of this year. While we remain cautiously optimistic for a pick-up in activity towards the end of the year, we expect our near-term organic multi-client investments to be lower, partly due to use of supplier risk-sharing and JVs. As a result, we continue to add high volumes of data to our library and generate strong cash flow,’ said Kristian Johansen, CEO of TGS.
The company’s guidance for 2021 is multi-client investments of between $150 million and $180 million (previously $200–230 million).
