Q4 2024 TGS ASA Earnings Call Transcript
Key Points
- TGS ASA (TGSGY) reported a 19% increase in total revenues for Q4 2024, reaching $492 million compared to $414 million in Q4 2023.
- The company successfully completed a balance sheet refinancing of existing PGS debt at attractive terms, ahead of the planned schedule.
- TGS ASA (TGSGY) realized $100 million in merger synergies, significantly surpassing the initial target of $60 million.
- The Board of Directors approved an 11% increase in dividends compared to 2024, reflecting confidence in the company's financial health.
- The company achieved a sales-to-investment ratio of 2.6% for the quarter, significantly above the historical average.
- The EBITDA margin decreased to 25% in Q4 2024 from 29% in the previous year, indicating a decline in profitability.
- TGS ASA (TGSGY) experienced relatively low utilization of its streamer fleet, partly due to necessary yard stays.
- The company faced a significant negative impact on cash flow due to working capital developments and refinancing-related costs.
- There was a decrease in multi-client revenues in the new energy solutions segment due to low data acquisition activity.
- The OBN market growth is expected to be flattish or slightly up in 2025, indicating potential challenges in maintaining growth momentum.
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Welcome to your TGS Q4 2024 presentation. My name is Bård Stenberg, Vice President of Investor Relations in TGS. Today's presentation will be given by CEO, Kristian Johansson and CFO, Sven Børre Larsen. Before we start, I would like to give some practical information. For those of you on the webcast, you can type in questions during the presentation, and we will address those after management's concluding remarks.
I would also like to draw your attention to the forward-looking statement showing on the screen and available in today's earnings release and presentation. So with that, I give the word to you, Kristian.
Thank you, board and welcome to the presentation. So before I start on the first slide, so that TGS-PGS merger completed on July 1 last year. So all financial numbers in this presentation are based on pro-forma numbers unless stated otherwise.
Financial numbers are also
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