Seismic contractor TGS has posted third-quarter 2015 net income of $40 million, compared to $54.6 million in the same period in 2014.
Earnings per share were $0.39, down from $0.53 in Q3 2014.
The Oslo-listed company reported revenues of $169 million in Q3 2015 (89% accounted to multi-client), versus 190 million for the year-ago quarter.
Earnings before interest and taxes (EBIT) totaled $46 million, corresponding to an EBIT margin of 27% and compared to last year’s Q3 of 38%.
Cash flow from operations was $121 million, resulting in an increased cash balance of $191 million at the end of the quarter.
A Q3 backlog of $182 million was reported.
“Energy companies continue to cut exploration spending, leading to continued pressure on demand for seismic data. Customer communication indicates that the current difficult market conditions will persist for some time. With a flexible cost structure and an asset-light balance sheet, TGS is positioned to take advantage of the uncertain market conditions and strengthen our position further,” TGS’ CEO Robert Hobbs stated. “Although investments will decline substantially in Q4, our 2015 revenue guidance remains unchanged.”