Based on preliminary reporting from operating units, TGS, a multi-client geoscience data provider to oil & gas companies, expects net revenues for the second quarter of 2016 to be approximately $114 million.
According to the company, its multi-client investments for the second quarter are expected to be approximately $62 million.
TGS said that the company’s full year 2016 guidance remains unchanged at approximately $220 million multi-client investments, which are expected to be prefunded 45% to 50%.
Kristian Johansen , CEO, TGS, commented: “Oil companies continue to be under pressure to reduce exploration and production spending. As a result, we still anticipate variability of seismic spending between quarters and across regions in the near term.
“However, we are very pleased with the performance of the TGS data library during Q2 2016 and remain confident in the long-term success of our focused, asset light, multi- client business model. We believe that following the unprecedented reduction in exploration activity it is inevitable that oil companies will return to exploration spending in the future as the demand-supply balance continues to tighten.”