Norway's TGS-Nopec Geophysical Company reported Thursday that its first quarter revenues fell during the three months to 31 March, 2015 to $172 million from $222 million in 1Q 2014.
The seismic data specialist said that net late sales were weaker than anticipated at $72 million, reflecting a deterioration in demand for seismic data services from energy companies as they significantly reduced exploration spending. However, a record high cash flow from operations of $260 million contributed to a cash balance of $352 million at the end of the quarter.
Operating profit (at the EBIT level) was $37 million for the quarter, compared to $94 million in 1Q 2014.
"Net revenues in 1Q were lower than our expectations due to weaker late sales from the data library in all geographic regions. Demand for seismic data has significantly deteriorated over the first three months of 2015 and the outlook for improvement in the market remains quite uncertain. On a positive note, cash flow in 1Q was strong and the company has a cash balance of $352 million as of 31 March 2015. TGS continues to be uniquely positioned within our industry with a strong balance sheet combined with a flexible asset-light business model," TGS CEO Robert Hobbs said in a statement.
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