TGS ASA — Earnings Release 2014

Feb 5, 2015

Record fourth quarter helps TGS to reach annual guidance

Record fourth quarter helps TGS to reach annual guidance

ASKER, NORWAY (5 February 2015) - Following its update on 13 January, TGS now

confirms net revenues of USD 298 million in Q4 2014, up 10% from USD 271 million

in Q4 2013 and representing a record high for the Company.  TGS achieved its

2014 guided revenues with full year net revenues of USD 915 million, up 4% from

USD 883 million in 2013.

4(th) QUARTER HIGHLIGHTS

* Consolidated net revenues were USD 298 million, compared to USD 271 million

in Q4 2013.

* Net late sales totaled USD 226 million, up 4% from USD 218 million in Q4

* Net pre-funding revenues were USD 62 million, up 44% from Q4 2013, funding

49% of the Company's operational multi-client investments during Q4

(investments of USD 126 million, up 37% from Q4 2013).

* Proprietary revenues were USD 9 million, compared to USD 10 million in Q4

* Operating profit (EBIT) was USD 47 million (16% of net revenues), compared

to USD 120 million (44% of net revenues) in Q4 2013. Following a decision to

close the Reservoir Solutions business, TGS made an impairment in Q4 2014 of

USD 54.4 million (USD 50.2 million after reversal of a related deferred tax

liability recognized as tax income). Also, an impairment of USD 9.5 million

has been recognized related to a fair-value assessment of other non-current

assets. Adjusted for the impairment costs, operating profit was USD 111

million (37% of net revenues).

* Cash flow from operations was USD 131 million, compared to USD 215 million

in Q4 2013.

* Earnings per share (fully diluted) were USD 0.31, down from USD 0.81 in Q4

FULL YEAR 2014 FINANCIAL HIGHLIGHTS

* Consolidated net revenues were USD 915 million, up from USD 883 million in

* Net late sales from the multi-client library totaled USD 631 million, down

1% from USD 638 million in 2013.

* Net pre-funding revenues were USD 247 million, up 33% from 2013, funding

53% of the Company's operational multi-client investments during 2014

(investments of USD 462 million, up 5% from 2013).

* Proprietary revenues were USD 37 million, compared to USD 59 million in

* Operating profit (EBIT) was USD 295 million (32% of net revenues), compared

to USD 387 million (44% of net revenues) in 2013. Adjusted for the

impairment costs related to the closure of the Reservoir Solutions business

and the re-assessment of the fair value of other non-current assets,

operating profit was USD 358 million (39% of net revenues).

* Cash flow from operations was USD 605 million compared to USD 543 million in

2013, an increase of 11%.

* Earnings per share (fully diluted) were USD 2.09, down from 2.59 in 2013.

"We are very pleased to announce a record fourth quarter and end of year 2014,

which helped us to reach our annual guidance despite challenging market

conditions. Q4 was marked by continued strong late sales from our high-quality

data library and we set a new record for late sales in the quarter. For 2015, we

expect continued downward pressure on exploration spending based on lower oil

prices. TGS is entering into 2015 with a record high order backlog and will

continue to capitalize on the asset-light business model and strong balance

sheet," TGS' CEO Robert Hobbs stated.

To access TGS Q4 2014 results information click below:

* Earnings Release

* Presentation Slides

* Live Presentation

Investor Presentation and Webcast

Robert Hobbs (CEO) and Kristian Johansen (COO/CFO) will present the results at

08:30 CET at the Hotel Continental, Stortingsgata 24/26 in Oslo, Norway.  The

presentation is open to the public. The presentation can be followed live on the

internet at www.tgs.com.

The slides from the presentation will also be available in PDF format on the TGS

website.

Q4 2014 Conference Call

CEO Robert Hobbs and COO/CFO Kristian Johansen will host a conference call on 5

February 2015 at 15:00 CET (9:00 AM New York time).   Attendees may want to call

5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access.

* Norwegian attendees are invited to call +800 56054 or +47 2316 2787

* International attendees are invited to call 0800 279 5004  or +44 (0)20

3427 1907

* US attendees are invited to call +1 877 280 2342

Participants will need to quote the following confirmation code when dialing

into the conference: 6075215.

A Q&A session will follow a short introduction, based upon the presentation

issued in the morning. To pose a question, please press *1.

A replay of the conference call will be available shortly after. To access

replay of the TGS conference call,

* dial +47 2100 0498 (Norway) or +44 (0)20 3427 0598 (International) or

+1 866 932 5017 (US)

* replay access code 6075215 followed by # (pound-sign)

A replay of the conference call will also be available at www.tgs.com.

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, permanent reservoir monitoring 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/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)

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