TGS ASA — Earnings Release 2017

Aug 3, 2017

TGS announces Q2 2017 Results

TGS announces Q2 2017 Results

ASKER, NORWAY (3 August 2017) - TGS reported net revenues of

USD 108 million in Q2 2017, slightly below Q2 2016 but up

25% from Q1 2017. Strong cash flow from operations of USD 59

million was a significant improvement from USD 9 million in

Q2 2016. Quarterly dividend will be maintained at USD 0.15

per share.

2nd Quarter Highlights

- Consolidated net revenues were USD 108 million,

slightly below USD 114 million in Q2 2016

- Net late sales totaled USD 79 million, compared to

USD 84 million in Q2 2016

- Net pre-funding revenues were USD 27 million (an

increase of 3% from Q2 2016), funding 46% of TGS'

operational multi-client investments for the quarter

- Operational multi-client investments were USD 59

million in addition to USD 2 million from risk sharing

arrangements

- Operating profit (EBIT) was USD 18 million (17% of

net revenues), compared to USD 22 million (19% of net

revenues) in Q2 2016

- Cash flow from operations was USD 53 million, a

significant improvement from USD 9 million in Q2 2016

- Free cash flow (after multi-client investments) was

USD 12 million, compared to negative free cash flow of USD

-35 million in Q2 2016

- Cash balance at 30 June 2017 was USD 239 million in

addition to the undrawn USD 75 million Revolving Credit

Facility

- Earnings per share (fully diluted) were USD 0.09,

compared to USD 0.17 in Q2 2016

- Quarterly dividend maintained at USD 0.15 per share

- Financial guidance unchanged from 23 May 2017

o New multi-client investments* of approximately USD

260 million

o Additional multi-client investments expected from

sales of existing surveys with risk sharing arrangements

o Pre-funding of new multi-client investments*

expected to be approximately 40-45%

*New multi-client investments excluding investments

related to surveys with risk sharing arrangements

"Despite the challenging market conditions, customers have,

to an increasing extent been willing to support quality

project ideas. As such, TGS has been able to increase the

order backlog substantially since the beginning of the year.

In the 3rd quarter the activity with respect to data

acquisition volumes will be at historically high levels and

the investment and pre-funding levels are set to increase

significantly from the levels experienced so far this year,"

TGS' CEO Kristian Johansen stated.

To access TGS Q2 2017 results information, please use the

web links below:

- Earnings Release

- Presentation Slides

Q2 2017 Presentation and Webcast

Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will

present the results at 9.00 am CEST at the Hotel

Continental, Stortingsgata 24/26 in Oslo, Norway. The

presentation is open to the public and can be followed live

on the internet at www.tgs.com.

The slides from the presentation will also be available in

PDF format at both the TGS and Oslo Stock Exchange websites.

Q2 2017 Conference Call

CEO Kristian Johansen and CFO Sven Børre Larsen will host a

conference call on 3 August 2017 at 3.00 pm CEST (9.00 pm

EDT). Attendees may want to call 5-10 minutes before to

ensure registration and access.

- Norwegian attendees are invited to call +800 51084

or +47 2100 2610

- International attendees are invited to call 0800 358

6377 or + 44 (0)330 336 9105

- US attendees are invited to call +1 866 548 4713 or

+1 719 325 2213

Participants will need to quote the following confirmation

code when dialing into the conference: 5950879.

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 23 50 00 77 or +800 196 72 (Norway), +44

(0) 207 660 0134 or +0 808 101 1153 (International) or +1

719 457 0820 or +888 203 1112 (US)

- replay access code 5950879 followed by # (pound-

sign).

A replay of the conference call will also be available at

www.tgs.com.

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.

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 product 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.