TGS Expects Further Revenue Decline
TGS expects net revenues for the first quarter of 2016 to be approximately $64 million, based on preliminary reporting from operating units.
First quarter revenues in 2015 and 2014 were $172 million and $222 million, respectively. In spite of the revenue drop in recent years, TGS anticipates that its cash balance will increase to around $210 million in 1Q 2015 as a result of operational investments of approximately $53 million and good cash collections in the quarter. This is in addition to an undrawn revolving credit facility of $75 million. TGS also expects multi-client investments of approximately $220 million in 1Q 2015.
TGS CEO Kristian Johansen commented in a company statement:
"This last quarter has arguably been the most severe of this down cycle with many customers focusing on cost and headcount reduction resulting in a significant pull back from exploration spending. TGS will continue our strong focus on cost control, cash flow and maintaining a healthy balance sheet in this challenging market.”
TGS’ full first quarter earnings release is scheduled for April 21.
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