TGS, a provider of multi-client geoscience data, has reported net revenues of USD 190 million in Q3 2014, compared to USD 191 million in Q3 2013.
Earnings before interest and taxes (EBIT) totaled USD 71 million, corresponding to an EBIT margin of 38%. Cash flow from operations was USD 184 million, an increase of 57% from Q3 last year.
TGS’ backlog amounted to USD 260.1 million at the end of Q3 2014, an increase of 46% from Q3 2013 and 16% higher than last quarter. The increase from last quarter is mainly due to the customer commitments for the Australian 3D survey, Nerites Phase 2, announced on July 31, 2014.
“We are pleased to announce Q3 revenues in line with Q3 2013 despite a challenging market with lower oil prices and continued downward pressure on exploration spending. TGS continues to see good investment opportunities and will capitalize on our asset-light business model and strong balance sheet. Our record high back-log at the end of Q3 positions the company well to continue to deliver high quality data needed by the industry to identify new reserves,” TGS’ CEO Robert Hobbs stated.
Net income for Q3 2014 was USD 54.7 million (29% of net revenues), down from USD 56.5 million in Q3 2013. Quarterly earnings per share (EPS) were USD 0.53 fully diluted (USD 0.54 undiluted), which is down 3% from Q3 2013.
Interest in regions in which TGS has a library presence is strong. Certain important events are expected to occur that will allow TGS to achieve its 2014 guidance. The most important of these is an announcement of the Norwegian 23 rd Exploration Round blocks by mid-Q4.