Based on preliminary reporting from operating units, management of TGS ASA (TGS) expects IFRS revenues for 4Q 2023 to be approximately US$189 million, compared to US$219 million in 4Q 2022.
POC revenues* are expected to be approximately US$205 million, compared to US$227 million in 4Q 2022.
Proprietary revenues are expected to be US$88 million, up from US$60 million in 4Q 2022.
POC multi-client revenues are estimated at approximately US$118 million, down from US$167 million in 4Q 2022, with early sales of US$59 million, up from US$31 million in 4Q 2022, and late sales of approximately US$59 million, compared to US$137 million in 4Q 2022.
This results in POC revenues of US$968 million for the full year of 2023, a growth of 14% compared to pro-forma POC revenues (incl. Magseis) in 2022. POC multi-client revenues are expected to be US$549 million, up 8% compared to 2022.
The POC contract backlog is estimated at US$545 million compared to US$475 million on 30 September 2023 and US$451 million on 31 December 2022. The cash balance on 31 December 2023 was approximately US$200 million.
“While we are pleased to deliver an annual revenue growth of 14% in 2023, we are disappointed with late sales in 4Q. Delayed licensing rounds, supermajors focusing their exploration spending on drilling and new seismic data acquisition, as well as ongoing M&A processes among some of our key customers, partly explain why we did not see the normal year-end spending in 4Q. On a positive note, we saw increased activity from independents, good order inflow and positive momentum in our acquisition business, which continues to outperform our expectations. Further, the strong development in the Digital Energy Solutions business continued, with more than a doubling of revenues compared to 4Q 2022. I’m increasingly optimistic for 2024, based on positive signals from our customers. Our contract backlog going into 2024 is 21% higher than a year earlier and the pipeline of further business opportunities looks promising,” stated Kristian Johansen, CEO of TGS.
“In a market characterised by high volatility in both revenue mix and regional focus, diversification is increasingly important. The PGS transaction, which is expected to close during H1 2024, will ensure that TGS has exposure towards all parts of the energy data market, including streamer, OBN acquisition and products and services for new energy. Finally, the transaction will add geographical diversification and thereby reduce volatility of the multi-client business,” added Kristian Johansen.
TGS will release its 4Q 2023 results at approximately CET 07:00 am on 15 February 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 recognised when the customers receive access to the finished data.
Adjustments between preliminary IFRS and Segment revenue numbers for 4Q 2023:
Preliminary reported IFRS revenue: US$189 million.
- Revenue recognised from performance obligations met during 4Q for completed projects: US$43 million.
+ Revenue recognised under POC during 4Q: US$59 million.
= Preliminary reported POC revenue: US$205 million.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09012024/tgs-provides-4q-2023-revenue-update/