Oslo, Norway (October 28, 2021) – TGS today released its interim financial results for the third quarter of 2021.

Net IFRS revenue was $ 200 million in the third quarter of 2021, an increase of 243% over the third quarter of 2020. EBITDA was $ 167 million and income was $ 167 million. ‘operating at $ 36 million, up from $ 40 million and – $ 90 million, respectively, in the third quarter of 2020.

Segment net sales (1) amounted to $ 61 million in the third quarter of 2021, compared to $ 81 million in the third quarter of 2020. Segment EBITDA amounted to $ 28 million versus $ 62 million in the same quarter of 2020, while segment operating income was – USD – 28 million, as in Q3 2020.

Free cash flow (2) amounted to $ 6 million in the third quarter of 2021, compared to $ 4 million in the third quarter of 2020. After distribution to shareholders of $ 23 million, the cash balance amounted to 190 million dollars as of September 30, 2021. For the first nine months of 2021, free cash flow stands at 108 million dollars, compared to -4 million dollars in 2020.

The strong financial position allows TGS to maintain the quarterly dividend at $ 0.14 per share and to continue its share buyback program with a residual value of up to $ 7 million.

“Market conditions for multi-client seismic data remain difficult. The 2021 budgets of E&P companies do not allow much spending beyond what was committed at the start of the year, which means that recent increases in oil prices so far have had little impact. impact on spending levels. However, with the increase in the price of oil combined with the low cost of exploration-related services, the exploration value proposition is approaching all-time highs and we are starting to see the first signs of a recovery, ”said Kristian Johansen, CEO of TGS. “I am pleased with the progress made in our New Energy Solutions business, where we expect to generate approximately $ 10 million in pro forma revenue this year. ”

A live presentation and webcast of the results and activity update, featuring CEO Kristian Johansen and CFO Sven Børre Larsen, will take place at Skøyen Atrium, Askekroken 11, 0277 Oslo, Norway (premier floor) at 9:00 a.m. CEST.

Access and registration for online participants is available by copy and paste
this link in your browser:
https://channel.royalcast.com/landingpage/hegnarmedia/20211028_7/

A recorded version of the entire presentation will be available on TGS.com
(http://www.tgs.com) after the live event.

For more information, visit TGS.com (http://www.tgs.com) or contact:

Sven Børre Larsen
CFO
Phone: +47 90 94 36 73
Email: [email protected]

Remarks
1 – IFRS versus segment information:
The main difference between IFRS and segment reporting concerns revenue recognition. Under IFRS, revenue recognition is generally deferred until project completion and delivery to the customer when performance obligations are met. As part of the sector information, net income from projects in progress is recognized on the basis of the percentage of completion (POC). The posting of turnover has subsequent effects on the posting of depreciation of the multi-client library. Please see the Annual Report for a full description of the Company’s accounting policies.

Adjustments between IFRS revenue and segment revenue for Q3 2021:
Revenues reported under IFRS: USD 200 million
– Recognized revenue from performance obligations fulfilled during the third quarter for completed projects: $ 163 million
+ Revenue recognized under the POC during the 3rd quarter: 24 million USD
= Preliminary reported segment net revenue: US $ 61 million

The differences in EBIDTA and operating income between IFRS and segment information are due to aggregate differences in income and the resulting impact on depreciation.

2 – Defined as Operating cash flow after investments in the multi-client library.

About TGS
TGS provides scientific data and intelligence to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialist services such as advanced processing and analysis, as well as cloud-based data applications and solutions.

Forward-looking statement
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based on assumptions as to future events which may not prove to be accurate. . These factors include TGS’s dependence on a cyclical industry and its major customers, TGS’s ability to continue to expand data licensing markets, and TGS’s ability to acquire and license data. process data products at costs commensurate with profitability, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the sharp drop in oil prices. Actual results may differ materially from those expected or projected in forward-looking statements. TGS assumes no responsibility or obligation to update or change any forward-looking statements for any reason.

• TGS Q3 2021 presentation

• Publication of TGS Q3 2021 results