Norway: TGS Announces 10% Decrease in Net Revenuest Compared to Q2 2009

TGS’ CEO Robert Hobbs said .”As previously noted, our sales in the second quarter were negatively affected by a delay in the announcement of Norway’s 21st licensing round as well as some early effects of regulatory uncertainty in the U.S. Gulf of Mexico.

In contrast, we have seen increased activity in other areas of operations and we continue to remain optimistic about the longer term fundamentals for our sector”

2nd QUARTER HIGHLIGHTS

* Consolidated net revenues were USD 112.3 million, a decrease of 10% compared to Q2 2009.

* Net late sales totaled USD 64.6 million, down 24% from Q2 2009.

* Net pre-funding revenues were USD 43.0 million, up 27% from Q2 2009, funding 44% of the Company’s operational investments into new multi-client products during Q2 (USD 97.1 million, up 25% from Q2 2009).

* Proprietary revenues of USD 4.7 million, down 20% from Q2 2009.

* Operating profit (EBIT) was USD 33.4 million (30% of Net Revenues), down 38% from Q2 2009. The operating costs in Q2 include non-recurring items of USD 5.7 million related to the termination of the Northern Genesis vessel charter.

* Cash flow from operations was USD 74.1 million, versus USD 44.5 million in Q2 2009.

* Earnings per share (fully diluted) were USD 0.18 compared to USD 0.39 in Q2 2009.

6 MONTHS FINANCIAL HIGHLIGHTS

* Consolidated net revenues were USD 260.6 million, an increase of 34% compared to H1-2009.

* Net late sales from the multi-client library totaled USD 138.0 million, up 21% from USD 114.4 million in 2009.

* Net pre-funding revenues were USD 112.6 million, up 65% from 2009, funding 58% of the Company’s operational investments into new multi-client products during H1 (USD 193.3 million, up 37% from H1-2009).

* Proprietary revenues of USD 10.0 million, down 18% from H1 2009.

* Operating profit (EBIT) was USD 92.3 million (35% of Net Revenues), up 24% from USD 74.1 million in 2009.

* Cash flow from operations was USD 180.4 million, versus USD 140.4 million in 2009.

* Earnings per share (fully diluted) were USD 0.58 compared to USD 0.52 in for the same period in 2009.

[mappress]

Source: TGS, August 5, 2010: