Seismic contractor TGS has posted fourth-quarter 2015 net loss of $121.5 million, compared to net income of $32 million in the same period in 2014.
Earnings per share (fully diluted) were $-1.19, down from $0.31 in Q4 2014.
The Oslo-listed company reported net revenues of $132 million in Q4 2015, versus $298 million for the year-ago quarter. Full-year 2015 net revenues were $612 million, a drop from $915 million in 2014.
“Oil companies are continuing to cut E&P spending. The market for seismic data is likely to remain weak in 2016. TGS has implemented a number of measures to handle the downturn. In November 2015, a major restructuring of the company was implemented and through 2015 the global workforce was reduced by approximately 28%. Compared to last year, the run rate for cash operating cost has been reduced by approximately USD 25 million per year,” says Robert Hobbs , CEO of TGS.
TGS’ backlog amounted to $144.6 million at the end of Q4 2015, a decrease of 51% from Q4 2014 and 20% lower than last quarter.
The company said that for 2016 it expects multi-client investments of approximately $220 million, of which 45 to 50% should be pre-funded.
According to TGS, dividend of $0.15 per share will be paid in Q1 2016. The dividend will be paid in the form of NOK 1.30 on February 23, 2016.
Subsea World News Staff