TGS has reported a second quarter net loss of -$80 million compared with a net loss of -$1.7 million in the second quarter of 2019.
TGS has reported a second quarter net loss of -$80 million compared with a net loss of -$1.7 million in the second quarter of 2019. Segment revenues of $96 million were down from $166 million in the second quarter of 2019.
Net segment revenues for the second quarter came in at $96 million, a 55% decline compared to Q2 2019. Investments in the multi-client library totalled $77 million and were supported by $38 million (49%) in prefunding.
‘Despite the unprecedented weak market conditions in Q2, TGS generated improved cash flow from operations compared to Q2 2019. During the quarter, TGS’ cost level has been reduced significantly in light of the weak market conditions.’ said Kristian Johansen, CEO at TGS.
Q2 2020 EBITDA adjusted for non-recurring items was $69 million, down 61% from $178 million in Q2 2019. The company completed its restructuring during Q2 and recognized non-recurring items of $16.8 million and impairment of selected projects in the multi-client library of $30 million. The cash balance ending June 2020 was $198 million.
Organic multi-client investments of $77 million were 12% lower than the $87million invested in Q2 2019.
The company warned in its results statement that the market would continue to be particularly tough for seismic companies. ‘E&P companies have reduced their 2020 spending budgets 25-30% on average, with most of the cuts in discretionary (uncommitted) spending. As the purchase of seismic data tends to fall into the discretionary category, geophysical industry revenues are likely to fall significantly more than the overall spending cuts.’
