TGS Revenue Beats Guidance, Could Rise Further
OSLO, Jan 9 (Reuters) – Seismic surveyor TGS beat its own revenue guidance in 2013 and could post even higher revenue in 2014, the firm said on Thursday, a positive change for a sector dragged down in recent months by a slew of profit warnings.
TGS, which maps the sea floor for oil and gas deposits, said its 2013 revenue totalled around $882 million, above its own guidance for $810 million to $870 million as it amassed record late sales in the fourth quarter.
For 2014, the firm said revenue could total between $870 million and $950 million, or broadly in line with analysts' expectation for around $916.5 million, according to Thomson Reuters data.
Seismic surveyors have been among the worst performing stocks in the oil services sector as oil companies rein in capital spending, hitting the market for exploration.
PGS, TGS and Polarcus have all issued profit warnings in recent months, while Dolphin Group said its 2014 revenue would be around the low end of analyst forecasts.
"The near term outlook for exploration is mixed with some survey participants expecting seismic costs to fall in 2014," TGS said. "(But the) longer term outlook for exploration very positive as oil companies move to deeper waters and unconventional plays."
TGS said it sees pre-funding on its surveys at around 45 to 55 percent in 2014, an increase from its 2013 guidance for 40 to 50 percent. It sees multi-client investments at $390 to 460 million.
TGS shares have fallen 15 percent over the past three months while PGS is down over 7 percent. The Oslo benchmark is up 9 percent over the same period.
(Reporting by Balazs Koranyi; Editing by Terje Solsvik and David Holmes)
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