Based on preliminary reporting from operating units, management of TGS ASA ("TGS") expects IFRS revenues for Q2 2024 to be approximately USD 224 million, compared to USD 206 million in Q2 2023.
POC revenues* are expected to be approximately USD 215 million, compared to USD 241 million in Q2 2023.
POC multi-client revenues are estimated at approximately USD 115 million versus USD 129 million in Q2 2023, with early sales of USD 49 million, compared to USD 66 million in Q2 2023, and late sales of approximately USD 66 million, up from USD 63 million in Q2 2023. Multi-client investments were approximately USD 52 million, compared to USD 86 million in Q2 2023.
Proprietary revenues are expected to be USD 100 million versus USD 113 million in Q2 2023.
“Without any special sales events, such as licensing rounds and transfer fees, we are satisfied with the development in multi-client revenues in the quarter. Late sales increased by 6% compared to the same quarter of last year and we continued to show strong sales of ongoing surveys with an early sales rate of 94%. Proprietary revenues increased approximately 30% sequentially and our operational performance was solid for ongoing projects. Furthermore, I’m pleased to see strong order inflow in our Acquisition business in the quarter, reflecting continued growth in demand for OBN data acquisition services. By completing the merger with PGS on 1 July, TGS is perfectly positioned to support our customers’ exploration ambitions and capitalize on what we think will be a multi-year upcycle,” stated Kristian Johansen, CEO of TGS.
The PGS acquisition was completed on 1 July 2024, meaning that the financial results will not be reported as part of TGS until Q3 2024. Based on a preliminary assessment from PGS, POC revenues* in Q2 2024 are expected to be approximately USD 180 million, of which USD 100 million relates to multi-client and USD 79 million relates to proprietary revenues (incl. Imaging). In Q2 2024, approximately 31% of the vessel capacity** was allocated to contract seismic, 27% to multi-client, while the remaining 42% was split between steaming, yard-stays, and standby.
TGS will release its Q2 2024 results at approximately 7:00 am CET on 18 July 2024.
*For the purpose of POC revenues, multiclient revenues committed prior to completion of projects are recognized on a percentage of completion ("POC") basis. This differs from IFRS reporting, where revenues committed prior to completion are recognized when the customers receive access to the finished data.
** The statistics are based on eight available vessels in Q2 2024. All cold-stacked vessels are excluded from the statistics.
Adjustments between preliminary IFRS and POC revenue numbers for Q2 2024:
Preliminary reported IFRS revenue: USD 224 million
- Revenue recognized from performance obligations met during Q2 for completed
projects: USD 58 million
+ Revenue recognized under POC during Q2: USD 49 million
= Preliminary reported POC revenue: USD 215 million