OSLO, Norway (10 February 2022) – TGS today reported interim financial results for Q4 2021.
Net IFRS revenues amounted to USD 105 million in Q4 2021, compared to USD 143 million in Q4 2020. EBITDA was USD 69 million, and the operating result was USD -101 million, compared to USD 127 million and USD -25 million, respectively, in Q4 2020.
Net segment revenues (1) amounted to USD 120 million in Q4 2021, the same as in Q4 2020. Segment EBITDA was USD 84 million versus USD 104 million in the same quarter of 2020, while the segment operating result amounted to USD -88 million compared to USD -68 in Q4 2020. The results include impairments of the multi-client library of USD 97 million.
Free cash flow (2) amounted to USD 55 million in Q4 2021, up from USD 28 million in Q4 2020. After shareholder distribution of USD 19 million, the cash balance totaled USD 215 million on 31 December 2021 versus USD 196 million a year earlier. For the full year of 2021 free cash flow (2) amounted to USD 162 million, up from USD 14 million in 2020.
The solid financial position allows TGS to maintain the quarterly dividend at USD 0.14 per share and continue its share repurchase program with a remaining value of up to USD 4.3 million.
“Although the multi-client market remains at a low level in a historical perspective, we have seen several positive signs of improvement lately, and the sales momentum in Q4 2021 was better than previous quarters. This is further underlined by the strong order inflow of more than USD 160 million experienced during the quarter,” says Kristian Johansen, CEO of TGS. “Our clients are currently experiencing record high cash flow and have indicated significant E&P spending increases for 2022. Recent conversations with key customers indicate that this should impact seismic spending positively. The more positive market outlook along with our strong balance sheet, allow us to increase our multi-client investments for 2022.”
