TGS ASA — Earnings Release 2014

Apr 24, 2014

TGS Q1 2014 Earnings Release

Robert Hobbs Kristian K. JohansenChief Executive Officer Chief Financial Officer

All statements in this presentation other than statements of historical fact, are forward-looking statements, which are subject to ^a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on ^a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

• Net revenues were 222 MUSD compared to 211 MUSD in Q1 2013
• Net late sales of 137 MUSD, up 9% from 127 MUSD in Q1 2013
• Net pre-funding revenues of 74 MUSD were up 33%, funding 57% of TGS' operational multi-client investments for the quarter (129 MUSD)
• Average amortization rate for the multi-client library was 41% compared to 38% in Q1 2013
• Operating profit for the quarter was 94 MUSD, 42% of net revenues, compared to 89 MUSD (42% of net revenues) in Q1 2013
• Five 3D vessels, two 2D vessels and five land crews operating under TGS control in Q1 2014
• TGS was also a participant in one 2D marine JV project and one 3D marine JV project during Q1 2014

Operational Highlights

Q1 2014 Operations

Q1 Activity – North & South America

Central Gulf of Mexico

• Francisco – 6,700 km2 multi-client 3D survey
• Long offsets utilized (12 kilometers)
• First 3D survey in the frontier basin floor fan play in Atwater Valley and Lund areas of the Central Gulf of Mexico.
• Leverages adjacent TGS 3D data and utilizes TGS' Clari-Fi™ broadband processing technology

Brazil

• Olho de Boi 5,000 km2 multi-client 3D survey in partnership with Dolphin
• Survey designed to image pre and post-salt plays in the hydrocarbon rich Campos Basin
• First TGS 3D survey in Brazil, based on considerable geologic review and reprocessing of existing 2D data
• Data being processed utilizing TGS' proprietary Clari-Fi™ broadband technology

Q1 Activity – Australia

Great Australian Bight

Nerites – 8,300 km2 multi-client 3D survey covering two of the newly released petroleum exploration blocks which are located mostly in the deep water Ceduna sub-basin

Northwest Australia

• Huzzas 2,100 km2 multi-client 3D survey covering multiple petroleum exploration blocks in the Barrow subbasin
• Both surveys being processed utilizing TGS' proprietary Clari-Fi™ broadband technology
• Upon completion the TGS 3D multi-client library offshore Australia will exceed 32,500 km2

Q1 Activity – Africa

Madagascar

• MS-14 – 1,950 km multi-client 2D survey in partnership with BGP completed in Q1 2014
• AN-14 and CSM-14 8,800 km multi-client 2D surveys (100% TGS) completed in Q1 2014
• Extends and infills the existing 33,000 km of 2D data acquired by TGS in this region
• Data will be processed utilizing TGS' proprietary Clari-Fi™ broadband technology
• TGS well positioned for Madagascar license round activity

Benin

• BR-13 – 2,200 km2 multi-client 3D survey completed in early Q1 2014
• TGS' second 3D survey in Benin building upon past 2D survey work
• Data being processed utilizing TGS' proprietary seismic multiple elimination technology, TAMETM

Q1 Activity – Onshore Projects

• Cheyenne – 1,800 km2 multi-client 3D project in Colorado focused on liquid plays in Mississippian and Pennsylvanian intervals
• Rush Creek – 440 km2 multi-client 3D project in Texas focused on Granite Wash, Hogshooter, Cleveland Sands, Atoka and Tonkawa geological trends
• Pendryl – 400 km2 multi-client 3D project in Central Alberta focused on emerging Duvernay play
• Washout Creek – 65 km2 high density multi-client 3D / 3C project addressing multiple plays in Central Alberta

Enhancing Value through Technology

• Further expansion in Houston data center during Q1 to accommodate current and future computational requirements
• The TGS Houston data center is among the top 20 clustered capacity centers in the World* as measured by compute-power

Compute capacity increased by 18,000 teraflops in Q1 2014 to bring total theoretical capacity to ~ 30,400 teraflops.

Imaging Technology

*Company estimate

Financials

Key Financials

EBIT before non-recurring items

Multi-client NBV and Investments (operational)

Cash Flow from Operations

Net Revenue Breakdown

Q1 2014 Income Statement

U S D i l l i E P S t m o n e x c e p ,		Q 1 2 0 1 4	Q 1 2 0 1 3	C h i % a n g e n
N i t t e o p e r a n g r e e n e s v u		2 2 2	2 1 1	5 %
C f d l d i d h t t t o s o g o o s s o p r o p r e a r a n o e r y –		2	1 6	8 % 5 -
A i i f l i- l i l i b t t t t m o r a o n o m c e n r a r z u y	4 1 %	8 7	0 7	2 % 5
i G r o s s m a r g n		1 3 3	1 2 5	6 %
P l t e r s o n n e c o s s		2 4	2 2	1 0 %
O h i t t e r o p e r a n g e x p e n s e s		1 0	9	5 %
C f k i t t t o s o s o c o p o n s		1	1	2 4 %
D i i t e p r e c a o n		3	3	0 %
i f i O t t p e r a n g p r o	4 2 %	9 4	8 9	5 %
N f i i l i t t e n a n c a e m s		3	( ) 2	N / A
P f i b f t t r o e o r e a e s x	4 4 %	9 7	8 7	1 2 %
T a e p e n s e x x		2 9	2 6	1 0 %
N I t e n c o m e	3 1 %	6 8	6 0	1 3 %
S E P U d i l d t n e u ,		0 6 7	0 9 5	1 3 %
E P S F l l D i l d t u y u e ,		0 6 6	0 5 8	1 3 %

S i i U D l l m o n	Q 1 2 0 1 4	Q 1 2 0 1 3	C i h % a n g e n
R i d t e c e v e p a y m e n s	3 0 7	2 6 2	1 7 %
P f i l t t a y m e n s o r o p e r a o n a e x p e n s e s	( ) 3 7	( ) 4 8	2 4 % -
P i d t a a e s x	( 4 ) 7	( 3 6 )	3 2 %
f O i l h l t p e r a o n a c a s o w	2 2 3	1 7 9	2 5 %
I i i b l d i i b l t t t t t n v e s m e n s n a n g e a n n a n g e a s s e s	( ) 9	( ) 1 1	1 9 % -
I i l i- l i l i b t t t t n v e s m e n s n m u c e n r a r y	( ) 1 2 7	( ) 9 6	3 2 %
I i d t t n e r e s r e c e v e	0 7	1	3 4 % -
I i d t t n e r e s p a	( ) 0 0 6	( ) 0 0 5	1 2 %
f P h h r c a s e o o n s a r e s u w	( ) 3	-
P d f h f f i r o c e e s r o m s a r e o e r n g s	0 4	1	6 5 % -
C h i h b l a n g e n c a s a a n c e	5 8	7 4	5 1 %

Q1 2014 Balance Sheet

U S D i l l i m o n	Q 1 2 0 1 4	Q 4 2 0 1 3	C h i % a n g e n
A t s s e s
C h i l t a s e q a e n s u v	3 6 6	2 8 1	3 0 %
F i i l i i l b l f l t t n a n c a n v e s m e n s a v a a e o r s a e	4	4	0 %
O h t t t e r c r r e n a s s e s u	3 4 9	4 4 7	2 2 % -
T l t t t o a c u r r e n a s s e s	7 1 8	7 3 1	2 % -
f I i b l d d d t t t t n a n g e a s s e s a n e e r r e a a s s e x	1 3 9	1 3 8	0 %
O h t t t e r n o n- c r r e n a s s e s u	5 5	6 5	3 % -
M l i- l i l i b t t u c e n r a r y	8 0 0	7 5 8	6 %
F i d t e a s s e s x	5 7	3 5	% 7
T l A t t o a s s e s	1 6 8 7 ,	1 3 6 7 ,	2 %
i i i i L b l t a e s
C l i b i l i i t t r r e n a e s u	3 1 7	3 4 2	% 7 -
N l i b i l i i t t o n- c u r r e n a e s	1 7	1 7	0 %
f D d l i b i l i t t e e r r e a a x y	8 7	8 5	8 % -
T l L i b i l i i t t o a a e s	4 1 2	4 4 3	% 7 -
E i t q u y	5 1 3 7 ,	1 2 9 3 ,	5 %
T l L i b i l i i d E i t t t o a a e s a n q u y	1 6 8 7 ,	1 3 6 7 ,	2 %

TGS has no interest bearing debt

Net Revenues vs. Net Book Value per Vintage

Continued Growth in Returning Cash to Shareholders

• Proposed dividend of NOK 8.5 per share for the 2013 accounting year
• Shares will be quoted ex dividend on 4 June 2014
• Dividend will be paid out on 18 June 2014
• In addition, the Board has authorized a share buy back program of USD 30 million of which USD 3.4 million has been implemented in Q1
• Proposed dividend and share buy back program represent approximately USD 170 million in cash returns to shareholders
• NOK 10.3 per share

Dividend per share (NOK) and Dividend Yield

Dividend yield calculated based on share price at day of announcement

Strong commitment on delivering shareholder returns from a combination of growth and dividend payout

Outlook

Outlook

EUR

• 2014 Northwest Europe acquisition season to commence in Q2 with 2D, 3D and P-Cable surveys in the Barents Sea
• Norwegian 23rd Licensing round and APA round announced
• Hoop basin block nominations in 23rd round following Wisting Central discovery
• Licensing rounds in UK (open) and Denmark (expected)

NSA

• Francisco survey approaching completion in Q2
• Vessels secured for entry into Mexico (subject to legislation and permit)
• Return to onshore Utica play with two projects announced for 2H 2014
• AMEAP
• Nerites survey continues in Q2
• Permitting process is showing improvement in Australia
• Awaiting Africa license round announcements

License Round Activity and TGS Positioning

North & South America

• •Central GOM – Mar 2015 (5-Year Plan)
• •Western GOM – Aug 2014 (5-Year Plan)
• •Alaska Offshore - 2016 & 2017 (5-Year Plan)
• •Newfoundland & Labrador – Nov 2015 & Nov 2017 (bids due)
• •Nova Scotia – Apr 2014 (call for bids)
• •Canada Onshore – at least monthly
• •Brazil - 2015 (expected)

Africa, Middle East, Asia Pacific

• •Madagascar – 2014 (expected)
• •Sierra Leone – 2014 (expected)
• •Liberia – 2014 (expected)
• • Australia – Oct 2014 , Feb 2015 & Apr 2015 (bids due)
• •Indonesia – 2014 (27 blocks selected)

Europe / Russia

• •Norway APA – Sep 2014 (bids due)
• •Norway 23rd Concession – H2 2015 (bids due)
• •United Kingdom – Apr 2014 (bids due)
• •Denmark - 2014 (expected)

Historical Backlog (MUSD) 2010 - 2014

Capacity Secured for 2014 EUR AMEAP

D Ve l 2 s s e	Ja n	Fe b	Ma r	Ap r	Ma y	Ju n	Ju l	Au g	Se p	Oc t	No v	De c
B G P C ha l len g er	JV Ma da	ga sc ar
Ge Ar ic t o c	Ma da	ga sc ar
Sa Sp ir it nc o					Ca da P GS JV na
A ka de i k S ha k iy ts m				NW E uro pe

C La d n re w	Ja n	Fe b	Ma r	Ap r	Ma y	Ju n	Ju l	Au g	Se p	Oc t	No v	De c
Co lo do Cr 1 & 2 ra ew s	Ch ey en	ne
Te Cr xa s ew				Ru sh C	k ree
Ca da Cr na ew	Pe nd l ry		WO C
O h io Cr ew										Wa ter	for d	Fre ort ep

Summary

• Strong start to 2014 with Q1 revenues of 222 MUSD
• Q1 2014 Operating profit of 94 MUSD, 42% of net revenues
• Q1 2014 multi-client investments of 129 MUSD
• TGS continues to benefit from its well positioned library and continues to see high quality investment opportunities
• Guidance for 2014 unchanged:
• Multi-client investments 390 – 460 MUSD
• Average pre-funding 45 – 55%
• Average multi-client amortization rate 40 – 46%
• Net revenues 870 – 950 MUSD

• Contract revenues approximately 5% of total revenues

• Average EBIT margin above 40% - stable EBIT – performance through the cycles

• ROCE significantly above WACC – substantial value creation in any industry cycle

^*Peer group includes CGG, Geokinetics, ION Geophysical, PGS, Western Geco, Dolphin, Polarcus Source Platou Markets and TGS

Thank you

©2014 TGS-NOPEC Geophysical Company ASA. All rights reserved.