Lauren Romeo: A recent addition to the Premier portfolio is a company called TGS-NOPEC (OSL:TGS), which is a provider of seismic data to energy companies that are doing exploration for oil and gas offshore. Seismic data is critical to E&P companies as they constantly need to replenish their reserves. TGS-NOPEC has been doing seismic surveys for decades, and as a result it's built up an extensive seismic data library that is really a competitive advantage for the company.
TGS-NOPEC has several characteristics that we like in Premier companies, including an asset-light business model and a variable cost structure. Unlike most of its competitors, TGS-NOPEC does not own the vessels that go out and shoot the seismic data. As a result, the company is able to maintain high operating profit margins even in down periods for the industry. Continue Reading »