OSLO, Jan 13 (Reuters) – Norwegian seismic explorer TGS posted higher-than-expected fourth-quarter revenues on Tuesday but warned that tumbling oil prices would lower sales this year as energy companies curb spending.
The "magnitude and speed of the decline, combined with an already slowing E&P spend environment, will exacerbate customer cautiousness as it relates to 2015, and possibly 2016, capex plans," the Oslo-listed firm said in a statement ahead of an investor presentation on Tuesday.
TGS, which provides seismic data for companies searching for oil and gas deposits under the sea, posted a 10 percent rise in fourth-quarter revenues to $298 million, topping a consensus forecast of $246 million.
Full-year revenues rose 4 percent to $915 million, beating a forecast of $867.6 million.
But the company said it expected 2015 revenues to fall to around $750 million, a decline of around 18 percent.
Analysts' mean expectation for 2015 revenues stood at $786 million, according to Thomson Reuters data.
The company, which will report 2014 full results on Feb. 5, said it expected 2015 operating earnings of around $260 million, while analysts have forecast $276 million.
The Oslo-listed firm also proposed a dividend of 8.5 crowns per share, flat versus last year's level.
"We expect the TGS share price to trade flattish today as another fantastic Q4 will be offset by guidance below consensus forecast and another big fall in oil prices yesterday," Arctic Securities analyst Christian Yggeseth wrote in a note to clients.
Shares in TGS trade on a forward 12-month price-to-earnings that is more expensive than its peers, with a ratio of 12.2 versus peers with a ratio of 7.5.
(Reporting by Stine Jacobsen, editing by Terje Solsvik)
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