TGS reported net revenues of USD 158 million in Q2 2018, up 47% from Q2 2017. Operating profit for the quarter was USD 54 million (34% of net revenues), the highest quarterly operating profit in four years. TGS' strong cash flow generation continued with free cash flow of USD 55 million in the quarter, up from USD 12 million in Q2 2017, resulting in an increased cash balance of USD 338 million. Quarterly dividend will be maintained at USD 0.20 per share, up 33% from Q2 2017.  

2nd Quarter Highlights - Segment Reporting

• Consolidated net revenues were USD 158 million, up 47% from USD 108 million in Q2 2017
• Net late sales totaled USD 136 million, up 73% from USD 79 million in Q2 2017
• Net pre-funding revenues were USD 21 million, funding 37% of TGS' operational multi-client investments for the quarter
• Operational multi-client investments were USD 56 million in addition to USD 4 million from risk sharing arrangements
• Operating profit (EBIT) was USD 54 million (34% of net revenues), up 200% from USD 18 million (17% of net revenues) in Q2 2017
• Cash flow from operations was USD 128 million, up from USD 53 million in Q2 2017
• Free cash flow (after multi-client investments) was USD 55 million, up from USD 12 million in Q2 2017
• Cash balance at 30 June 2018 was USD 338 million in addition to the undrawn USD 75 million Revolving Credit Facility
• Earnings per share (fully diluted) were USD 0.45, up from USD 0.09 in Q2 2017
• Quarterly dividend is maintained at USD 0.20 per share, up 33% from Q2 2017

Financial guidance for 2018 reiterated at: 

• New multi-client investments* of approximately USD 260 million
• Additional multi-client investments expected from sales of existing surveys with risk sharing arrangements
• Pre-funding of new multi-client investments* expected to be approximately 45-50%

*New multi-client investments excluding investments related to surveys with risk sharing arrangements

"TGS delivered an excellent financial result in Q2 2018 driven by strong late sales which were up 73% year-on-year. This helped TGS to achieve its highest quarterly operating profit in four years. The global multi-client seismic market has been on an improving trend for more than a year now. TGS's strong quarter was partly a result of high regional license round activity combined with a pick-up in activity related to acreage turnover and farm-ins particularly among independents and smaller E&P companies. These triggering events fluctuate from quarter to quarter, therefore short-term volatility continues to be high. However, TGS believes that, with oil price continuing well above the level budgeted by most E&P companies, additional funds may be available for exploration spending by our customers at the end of the year," TGS' CEO Kristian Johansen stated.