TGS ASA — Earnings Release 2015

Apr 13, 2015

TGS - Q1 update

TGS - Q1 update

ASKER, NORWAY (13 April 2015) - Today, TGS announced a Cost Reduction Program

reflecting the deterioration of the market for seismic data seen in the first

quarter of 2015.  Based on preliminary reporting from operating units, TGS

management now expects net revenues for the first quarter of 2015 to be

approximately USD 172 million, about 23% lower than revenues reported for the

first quarter of 2014.

Net revenues were lower than management`s expectations due to weaker late sales

from the data library in all geographic regions.  Demand for seismic data has

significantly deteriorated over the first three months of 2015 and the outlook

for improvement in the market remains quite uncertain.

TGS is in constant communication with its customers and many of those energy

companies have not finalized their spending plans for 2015.  From these

discussions and an assumption that the price of oil will remain under pressure,

TGS expects annual net revenues of approximately USD 630 million for 2015, down

from USD 750 million as originally communicated in January. Operating profit

(EBIT) is expected to be negatively affected by the lower revenues, however

higher amortization will be partly compensated by the effects of the Cost

Reduction Program.

The Cost Reduction Program will position the company for the more challenging

seismic market caused by the significant drop in oil price. A key element of

this program is a reduction of more than 10% of TGS' global workforce effective

from April. Restructuring charges of approximately USD 4 million will be booked

in Q2 as a result of this Program. The company expects annual cost savings of

approximately USD 10 million as a result of the Cost Reduction Program.  In

addition to the reduction in headcount, Management has taken concrete actions to

recognize additional operational cost savings from the original 2015 budget.

Management will continue to review the Company's cost structure and if

necessary, take additional action to reduce cost if the market continues to

deteriorate.

Cash flow was strong in Q1 as cash holdings increased from USD 256 million at

year-end 2014 to USD 352 million as of 31 March 2015. In addition, the company

has an undrawn credit facility of USD 50 million resulting in a total liquidity

reserve of USD 402 million. The strong balance sheet and liquidity position

continue to provide dividend support going forward. The Board of Directors has

reviewed the Company's financial situation, including the Company's

distributable reserves according to the annual accounts for 2014. On this basis

and in accordance with the Company's resolved dividend policy, the Board of

Directors wishes to be authorized to distribute quarterly dividend payments from

Q1 2016. Reference is made to the Notice to the Annual General Meeting published

this morning for more information on the quarterly dividend proposal.

The full first quarter earnings release is scheduled for 23 April 2015.  A

conference call will be held the same day in association with that release.

Company summary

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil

and gas Exploration and Production companies worldwide.  In addition to

extensive global geophysical and geological data libraries that include multi-

client seismic data, magnetic and gravity data, digital well logs, production

data and directional surveys, TGS also offers advanced processing and imaging

services, interpretation products and data integration solutions.

For more information visit TGS online at www.tgs.com.

Forward-looking statements and contact information

All statements in this press release 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.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange

(OSLO:TGS).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter

market under the symbol "TGSGY".

For additional information about this press release please contact:

Kristian Johansen

COO / Interim CFO

Tel: +47 47 60 33 34

Email: kristian.johansen@tgs.com

Will Ashby

Director, Finance Western Hemisphere & Investor Relations

Tel: +1 713 860 2184

Email: will.ashby@tgs.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1910394]