Q1 2025 TGS ASA Earnings Call Transcript
Key Points
- TGS ASA (TGSGY) reported total revenues of $451 million for Q1 2025, an increase from $433 million in the same quarter last year.
- EBITDA improved to $258 million, driven by strong multi-client performance and high interest in frontier areas.
- The company achieved a significant year-over-year improvement in asset utilization, resulting in a net cash flow of $78 million.
- TGS ASA (TGSGY) maintains a solid balance sheet with net debt reduced to approximately $450 million, allowing for a stable dividend of USD0.155 per share.
- The company has a strong market share in the multi-client segment, with 63% of global investment since 2018 attributed to TGS ASA (TGSGY).
- There was a significant drop in contract revenues for new energy solutions, with no vessel activity related to this business in Q1 2025.
- The OBN market is expected to be slightly lower in 2025 compared to 2024, with some work pushed to 2026.
- The company faces challenges in the OBN sector due to unhealthy competition, impacting margins.
- TGS ASA (TGSGY) has reduced its CapEx guidance by 10% due to macroeconomic uncertainties and potential market weaknesses.
- The company anticipates volatility in revenue development for new energy solutions due to the large size and sporadic nature of projects.
Good morning and welcome to TGS Q1 2025 results presentation. My name is Bard Stenberg, Vice President of Investor Relations and Business Intelligence in TGS. Today's presentation will be given by CEO, Kristian Johansen; 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.
For those of you in Oslo, there's no no need for a microphone, so the sound feeds automatically into the systems.
I'd also like to draw our attention to the forward-looking statement showing on the screen and available in today's earnings release and presentations. So please study that carefully.
So that is my pleasure to give the word to you, Kristian.
Thank you, Bard, and let's hit the Q1 highlights right away. So we had total revenues of about $451
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