TGS back to black in fourth quarter

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Multi-client geoscience data provider TGS returned to profit during the fourth quarter of 2016, reversing a substantial loss compared to the corresponding quarter of 2015.
TGS reported a profit of US $23.9 million for 4Q 2016, as opposed to a US$121.5 million loss in the prior-year quarter.
The company’s revenues increased to US$164.7 for the quarter, significantly up from US$131.7 million in Q4 2015.
TGS said its backlog had decreased by 65% to US$51.2 million, compared to 4Q 2015, mainly as a result of high production on the Gigante projects offshore Mexico which was completed during the quarter. The company also completed acquisition of a 600,000 km² Gigante multibeam survey.
At the same time as it delivered its Q4 results, TGS also announced the start of another multibeam survey named Otos, which is designed to mirror the Gigante multibeam and seep study.
TGS said that it expects oil companies’ exploration and production spending to remain static in 2017, which it said was likely to be another challenging year for the exploration industry, punctuated by low visibility and high volatility.
However, TGS believes that the outlook for an exploration and seismic spend recovery in the long term is steadily improving. With reduced exploration spend continuing to bite, the company said shrinking reserves would become critical for E&P companies in due course.
TGS said it expects new multi-client investments in 2017 to remain at 2016 levels, with pre-funding of new multi-client investments expected to be approximately 40-45%.

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