TGS profit, revenues dip in 3Q

Norwegian provider of multi-client geoscience data to oil and gas companies, TGS, saw a drop in both revenues and profit for the third quarter of 2016 compared to the same period last year. 

The multi-client company on Thursday reported a net income of $1.75 million for 3Q this year, compared to $40 million in the corresponding quarter in 2015.

Operating profit for this year’s third quarter was $11 million, as opposed to $46 million posted in 3Q 2015.

Also, the company reported net revenues of $113 million in the third quarter of 2016, notably lower than the $169.5 million in 3Q 2015.

The company stated that, with customer activity remaining stable from 2Q to 3Q 2016, TGS was able to have a second consecutive quarter of positive operating profit.

Net late sales of $67 million went down 26% in 3Q 2016 from $90 million in the same quarter last year while net pre-funding revenues also went down by 47% in comparison to 3Q 2015 to $39 million in the third quarter of 2016.

TGS’ backlog amounted to $71.2 million at the end of 3Q 2016, a decrease of 61% from 3Q 2015 and 31% lower than last quarter. The decrease is mainly due to high production on the Gigante projects offshore Mexico.

TGS said it had reduced operating expenses by around 50% compared to the beginning of 2014, enabling the company to continue to deliver services at a lower cost.

At the same time, TGS continued to invest in projects such as Gigante 2D in Mexico and Revolution XII and XIII in the U.S. Gulf of Mexico, as well as acquire Dolphin’s multi-client library.

Offshore Energy Today Staff