TGS ASA — Earnings Release 2016

Feb 2, 2017

TGS announces Q4 2016 Results and 2017 Guidance at Capital Markets Day

TGS announces Q4 2016 Results and 2017 Guidance at Capital Markets Day

ASKER, NORWAY (2 February 2017) - TGS reported net revenues of USD 165 million

in Q4 2016 following strong late sales performance.  Full year 2016 net revenues

were USD 456 million. Quarterly dividend will be maintained at USD 0.15 per

share.  New multi-client investments for 2017 are expected to be at

approximately the same level as in 2016.

4(th) Quarter Highlights

* Consolidated net revenues were USD 165 million, compared to USD 132 million

in Q4 2015

* Net late sales totaled USD 145 million, up 60% from USD 90 million in Q4

2015

* Net pre-funding revenues were USD 17 million, down 53% from Q4 2015, funding

19% (37% excl. risk-sharing investments) of TGS' operational multi-client

investments for the quarter (USD 88 million including USD 42 million from

risk sharing arrangements)

* Operating profit (EBIT) was USD 42 million (25% of net revenues), compared

to USD -140 million (-106% of net revenues),  in Q4 2015

* Cash flow from operations was USD 79 million, compared to USD 99 million in

Q4 2015

* Free cash flow (after multi-client investments) was USD 33 million, compared

to USD -20 million in Q4 2015.

* Cash balance at 31 December 2016 was USD 191 million in addition to the

undrawn USD 75 million Revolving Credit Facility

* Earnings per share (fully diluted) were USD 0.23, up from USD -1.19 in Q4

* Quarterly dividend maintained at USD 0.15 per share

2016 Full Year Financial Highlights

* Consolidated net revenues were USD 456 million, compared to USD 612 million

in 2015

* Net late sales totaled USD 333 million, same as in 2015

* Net pre-funding revenues were USD 105 million, down 59% from 2015, funding

39% (48% excl. risk-sharing investments) of TGS' operational multi-client

investments for the year (USD 271 million including USD 51 million from risk

sharing arrangements)

* Operating profit (EBIT) was USD 53 million (12% of net revenues), compared

to USD -21 million (-3% of net revenues), in 2015

* Cash flow from operations was USD 324 million, compared to USD 567 million

in 2015

* Free cash flow (after multi-client investments) was USD 91 million, compared

to USD 63 million in 2015

* Earnings per share (fully diluted) were USD 0.22, up from USD -0.28 in 2015

2017 Full Year guidance

While the Q4 2016 results confirm early signs of improvement in the market,

visibility remains low for the near-term.  The combination of a strong balance

sheet and flexible business model positions TGS well to continue to take

advantage of market conditions.

Including the recent announcements of the large Atlantic Margin 3D project in

Norway and TGS' first survey in the Permian basin onshore U.S, a substantial

part of the 2017 investment plans has already been committed.

With the expectation of further investments being committed during the year, TGS

provides the following guidance for 2017:

* New multi-client investments* around the same level as in 2016

* Additional multi-client investments expected from sales of existing surveys

with risk sharing arrangements

* 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

"TGS delivered a strong Q4 2016, beating both company forecasts and market

expectations.  Going into 2017 we are well positioned with an efficient cost

base, strong balance sheet and flexible business model.  Our employees are

actively developing new business opportunities during this down-cycle as we

continue to enhance our status as the world's leading multi-client geophysical

company," TGS' CEO Kristian Johansen stated.

To access TGS Q4 2016 results information, please use the web links below:

*  Earnings Release

* Presentation Slides

Capital Markets Day Presentation and Webcast

Kristian Johansen (CEO) and Sven Børre Larsen (CFO) will present the 2016

financial results and 2017 guidance at 9.00am GMT during the company's Capital

Markets Day in London, UK today.

To access TGS Capital Markets Day presentation and webcast, please use the web

links below:

* Capital Markets Day webcast

* Capital Markets Day slides

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:

Sven Børre Larsen

Chief Financial Officer

Tel: +47 90 94 36 73

Email:sven.larsen@tgs.com

Will Ashby

VP HR & Communication

Tel: +1 713 860 2184

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Email:will.ashby@tgs.com

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

(Norwegian Securities Trading Act)