TGS Bucks Gloom with Record Results

Norwegian oilfield seismic survey firm TGS reported record results and a healthy order book Thursday, bucking the gloom in the seismic survey services sector due to recent the crash in the oil price.

TGS said its revenue for 2014 amounted to $915 million, up from $883 million in 2013. Its revenue for the fourth quarter came to $298 million, which was 10-percent greater than that for 4Q 2013.

Almost half TGS's sales in the final quarter of 2014 came from the Americas (48 percent), while Europe accounted for 35 percent of revenue. Africa, Middle East and Asia Pacific accounted for eight percent of revenue.

The firm's operating profit for 2014 – adjusted for impairment costs related to the closure of its Reservoir Solutions business among other items – came to $358 million, compared to $387 million in 2013. 

TGS's backlog at the end of 4Q 2014 was $293.1 million – which was four-percent greater than its backlog at the end of 2013 and 13-percent greater than at the end of September 2014. The firm said that the strong increase in its order backlog during the last quarter was mainly due to customer commitments for several onshore seismic projects in North America.

TGS CEO Robert Hobbs commented in a company statement:

"We are very pleased to announce a record fourth quarter and end of year 2014, which helped us to reach our annual guidance despite challenging market conditions. The fourth quarter was marked by continued strong late sales from our high-quality data library and we set a new record for late sales in the quarter. For 2015, we expect continued downward pressure on exploration spending based on lower oil prices. TGS is entering into 2015 with a record high order backlog and will continue to capitalize on the asset-light business model and strong balance sheet."


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