Geophysical contractor TGS has posted first-quarter 2018 net profit of $13 million, compared to profit of $1.5 million in the same period in 2017.
This comes down to quarterly earnings per share (fully diluted) of $0.13, against $0.02 profit per share same time last year.
The Oslo-listed firm generated revenues of $134 million in Q1 2018, up 56% compared to $86 million in Q1 2017.
“TGS’ performance in the past two quarters, driven by strong late sales across all regions, indicates that there has been an improvement in the underlying fundamentals of the global market for seismic data. The combination of higher oil price and lower cost base means that E&P companies now have more operating cash flow that can be used for growth investments. While we still expect some volatility in the near-term, our counter-cyclical strategy has positioned TGS to benefit from the improved market conditions,” said Kristian Johansen, TGS’ CEO.
Operating profit for the quarter (EBIT) was close to $25 million compared to $2 million in the prior-year comparable quarter.
TGS reported backlog was $74 million at the end of the first quarter 2018, down 38% from the corresponding period in 2017, and 9% up sequentially.
The company has kept its quarterly dividend at 20 cents per share.
Subsea World News Staff