TGS Slides to Loss

Seismic contractor TGS has posted fourth-quarter 2015 net loss of $121.5 million, compared to net income of $32 million in the same period in 2014.

Earnings per share (fully diluted) were $-1.19, down from $0.31 in Q4 2014.

The Oslo-listed company reported net revenues of $132 million in Q4 2015, versus $298 million for the year-ago quarter. Full-year 2015 net revenues were $612 million, a drop from $915 million in 2014.

“Oil companies are continuing to cut E&P spending. The market for seismic data is likely to remain weak in 2016. TGS has implemented a number of measures to handle the downturn. In November 2015, a major restructuring of the company was implemented and through 2015 the global workforce was reduced by approximately 28%. Compared to last year, the run rate for cash operating cost has been reduced by approximately USD 25 million per year,” says Robert Hobbs, CEO of TGS.

TGS’ backlog amounted to $144.6 million at the end of Q4 2015, a decrease of 51% from Q4 2014 and 20% lower than last quarter.

The company said that for 2016 it expects multi-client investments of approximately $220 million, of which 45 to 50% should be pre-funded.

According to TGS, dividend of $0.15 per share will be paid in Q1 2016. The dividend will be paid in the form of NOK 1.30 on February 23, 2016.

Subsea World News Staff

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