TGS ASA (TGSNF) Q1 2025 Earnings Call Transcript

2025-05-09 18:21:06 ET

TGS ASA (TGSNF)

Q1 2025 Results Conference Call

May 09, 2025 03:00 AM ET

Company Participants

Bard Stenberg - Vice President-Investor Relations

Kristian Johansen - Chief Executive Officer

Sven Børre Larsen - Chief Financial Officer

Conference Call Participants

John Olaisen - ABG Sundal Collier

Presentation

Bard Stenberg

Good morning, and welcome to TGS Q1 2025 Results Presentation. My name is Bard Stenberg, Vice President of Investor Relations and Business Intelligence in TGS. Today's presentation will be given by CEO, Kristian Johansen; and CFO, Sven Borre Larsen. Before we start, I would like to give some practical information. For those of you on the webcast, you can type in your questions during the present will address those after concluding remarks. For those of you in Oslo, there's no need for a microphone so the sound feeds automatic into the system. I would also like to draw your attention to the forward-looking statement showing on the screen and available in today's earnings release and presentation. So please study that carefully. So with that, it's my pleasure to give the word to you, Kristian.

Kristian Johansen

Thank you, Bard, and let's hit the Q1 highlights right away. So we had total revenues of about $451 million. That compares to $433 million in the same quarter of last year, and those numbers obviously pro forma for PGS and TGS. EBITDA of $258 million compared to $239 million in Q1 of 2024. And these numbers are driven by strong multi-client performance. We had particularly strong sales and high interest for data in frontier areas, which is great to see that our clients are finally coming back to frontier areas in their exploration efforts. Significant year-over-year improvement in asset utilization also helped on the numbers, which means that we had a net cash flow of $78 million in the quarter. which means that our net debt is now down to a level of about $450 million.

So again, a solid balance sheet, which allows for a stable dividend of USD 0.155 per share. I'll give you a brief business update and look at the acquisition activity in Q1 of 2025 as well. And I think this map shows the diversity of our activities and our businesses based on some of the strategic actions we've made over the past few years. Starting with OBN, we had 3 OBN operations, all in the U.S. Gulf of America. Two of these were 4D surveys for contract clients and then one was a contract with a multiclient player doing exploration seismic. In terms of NES operations, so new energies operations, you see one got in California. So we had a lighter boy campaign for offshore wind in California. We had another one in Germany, and then we had a site characterization project in the U.K. that started very late in the quarter. So we hardly had any revenues recognized from that in Q1.

Going further down the line, we have onshore projects. We had an onshore project in Lower 48 in the U.S. And then we had NC, is a multiclient vessel operations, 2 in Brazil in the Equatorial margin of Brazil. We had one in Angola as well. And then we had a third-party vessel working for us on a multiclient project in Argentina, as you see from the map. Finally, on the contract vessel operations, we had 1 vessel in Brazil in the quarter. We had 1 vessel in Namibia and 1 in India....

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