Norwegian seismic contractor TGS has reported revenues of $169 million for the third quarter of 2015. This is a fall from $190 million reported in the corresponding quarter of 2014.
TGS’ CEO Robert Hobbs said : “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. “
The company, whose largest business activity is developing, managing, conducting and selling multi-client seismic surveys, saw its net income for the quarter fall to $40 million, versus $54 million a year ago.
“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,” Hobbs added.
TGS expects annual net revenues of approximately $630 million for 2015. Hobbs said: “Although investments will decline substantially in Q4, our 2015 revenue guidance remains unchanged.”
TGS’ backlog amounted to $181.8 million at the end of Q3 2015, a decrease of 30% from Q3 2014 and 25% lower than last quarter. The decrease is mainly due to high production on the Northeast Greenland multi-year program, the company said.
The company in the first quarter this year implemented cost cutting measures, resulting in a significant reduction in operating expense.
The seismic specialist today said that due to the continued weak market conditions the company was in the process of further reviewing the cost base, with the aim of realizing additional cost reductions from the beginning of next year.
Offshore Energy Today Staff