ASKER, NORWAY (8 July 2013) - Based on current and forecasted activity levels, TGS expects annual multi-client investments and prefunding levels to be slightly lower than originally communicated in January 2013. Multi-client investments in Q2 are expected to be approximately USD 110 million corresponding to USD 236 million year to date. The Q2 investments had an average pre-funding ratio of 39% (42% year to date). Based on a review of the investment plans for the remainder of the year, TGS expects total investments of USD 520 - 590 million with a pre-funding ratio of 40% - 50%. Originally the guidance was investments of USD 530 - 600 million with average pre-funding of 50% - 60%. As a result of the revised investment plan, net revenues for 2013 are expected to be USD 920 - 1000 million.
Net revenues in Q2 are expected to be USD 210 million, reflecting continued strong demand for the TGS data library.
The revised guidance is as follows:
- Multi-client investments 520 - 590 MUSD
- Average pre-funding 40 - 50%
- Average multi-client amortization rate 40 - 46%
- Net revenues 920 - 1000 MUSD
- Contract revenues approximately 5% of total revenues
The full 2nd quarter earnings release is scheduled for 1 August 2013.
Company summary
TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, permanent reservoir monitoring and data integration solutions.
For more information visit TGS online at www.tgs.com.
Forward-looking statements and contact information
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).
For additional information about this press release please contact:
Kristian Johansen
Chief Financial Officer
Tel: +47 47 60 33 34
Email: kristian.johansen@tgs.com
Will Ashby
Director Investor Relations and M&A
Tel: +1 713 860 2184
Email: will.ashby@tgs.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
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Source: TGS via Thomson Reuters ONE
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