TGS has reported fourth quarter net loss of $23 million on overall revenues of $143 million, compared to a net profit of $70 million on overall revenues of $219 million in Q4 2019.
TGS has reported fourth quarter net loss of $23 million on overall revenues of $143 million, compared to a net profit of $70 million on overall revenues of $219 million in Q4 2019. The results were impacted by amortization of the multi-client library and other impairments of $172 million.
The company reported an operating loss of $49 million compared with an operating profit of $70 million in Q4 2019.
Q4 segment revenues were $120 million, compared to $232 million in Q4 2019.
Multi-client investments of $28 million compared with $62 million in Q4 2019. Net late sales of $103 million compared with $201 million in Q4 2019. Proprietary sales of $3.7 million compared with $5.4 million in Q4 2019.
Free-cash flow was $28 million in Q4 2020. After a dividend payment of $15 million the cash holding increased by $16 million to $196 million on 31 December 2020. TGS’ improved cash position has enabled it to repurchase up to $20 million worth of shares.
TGS reported a full-year net loss of $205 million on revenues of $319 million compared with a net profit of $113 million on revenues of $586 million in 2019. Full-year operating loss was $292 million compared to an operating profit of $129 million in 2019. Full-year segment revenues of $449 million compared to $773 million in 2019.
‘The results continue to be affected by the Covid-19 situation and the steep reduction in oil companies’ capital spending. It is evident that the market for exploring new oil and gas resources is in a deep cyclical trough. However, the lack of investments may cause a strong cyclical recovery when we can put Covid behind us and demand for oil and gas comes back to normalized levels,’ said Kristian Johansen, CEO at TGS.
Meanwhile, TGS has launched a new business unit called New Energy Solutions to provide provide data and insights for industries reducing GHG emissions, such as carbon capture and storage (CCS), deep sea mining (DSM), geothermal energy, wind energy and solar energy. ‘The starting point is the company’s vast subsurface data library, combined with core skills in geoscience, data processing, data management, data analytics and AI. This will be complemented by relevant additional data types and subject matter expertise,’ said a company statement.
‘Many of the investments required in renewable energy and CCS have long pay-back times. It is therefore critical to make well-informed and precise investment decisions. Our aim is to be the leading provider of data and insights that help derisk investments and reduce the time to market. We have been helping our oil and gas customers to derisk investment decisions for 40 years. With NES we will use our experience, global presence and core strengths to help new and existing customers with the energy transition,’ said Johansen.
