Geophysical contractor TGS has posted first-quarter 2016 net loss of $20.2 million, compared to net profit of $28.6 million in the same period in 2015.
This comes down to quarterly earnings per share (fully diluted) of $-0.20, down from $0.28 in Q1 2015.
In line with this month’s earlier announcement, the Oslo-listed firm generated revenues of $64 million in Q1 2016, compared to $172 million in Q1 2015.
Operating profit for the quarter (EBIT) was negative $21 million compared to positive $37 million in Q1 2015, reflecting the new amortization policy for seismic surveys.
TGS: Continued weak market conditions lead to substantial drop in revenues and profitability.
TGS reported backlog at $125.4 million at the end of Q1 2016, down 35 per cent from Q1 2015 and 13 per cent lower than last quarter. The decrease is mainly due to high production on the regional 2D seismic survey in the Gulf of Mexico.
TGS has maintained its quarterly dividend at $0.15 per share and said that its full-year financial guidance remains unchanged.
“This last quarter has arguably been the most severe of this down cycle and there are currently few tangible signs that a recovery is imminent. With E&P spending likely to decline 20-30% this year we expect the market for seismic data to remain weak throughout 2016,” said TGS’ CEO Kristian Johansen.
Subsea World News Staff