Q2 2025 TGS ASA Earnings Call Transcript
Key Points
- TGS ASA (TGSGY) reported an improved EBITDA margin of 50% in Q2 2025, up from 46% in the same quarter last year.
- The company maintained a positive free cash flow of $11 million before dividends.
- TGS ASA (TGSGY) is continuing business optimization efforts, resulting in lower costs and a reduction in vessel capacity from 7 to 6 vessels.
- The imaging and technology division had a strong quarter, with gross imaging revenues increasing from $25 million to $32 million year-over-year.
- The company is maintaining a stable dividend of $0.155 per share, consistent with previous quarters.
- TGS ASA (TGSGY) experienced a decline in total revenues to $308 million, down from $381 million in Q2 of the previous year.
- Multi-client revenues were below expectations due to low library sales, impacted by a volatile macro environment and a drop in oil prices.
- Contract revenues were negatively affected by operational challenges in Asia and lower contributions from JV partners.
- The company reported a negative EBIT of $22 million for the quarter, compared to a positive $8 million in the same quarter last year.
- Order backlog decreased from $600 million to $425 million, raising concerns about future revenue visibility.
Good morning, and welcome to TGS Q2 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 Borre Larsen.
I would also like to draw your attention to the cautionary statement showing on the screen and also available in today's presentation and earnings release. You can start typing in questions during the presentation, and we will address our questions after management's concluding remarks.
So with that, I give the word to you, Kristian.
Thank you, Bard, and welcome, everyone to TGS Q2 2025 earnings release. I'm going to hit the highlights right away and I'm going to start with two bullet points that, probably are in the categories of explanations rather than excuses for what we would consider a relatively weak quarter. So the first one is, we had multi-client revenues below
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