TGS ASA — Earnings Release 2017

Feb 8, 2018

TGS announces Q4 2017 Results with Full Year revenues up 8%

TGS announces Q4 2017 Results with Full Year revenues up 8%

ASKER, NORWAY (8 February 2018) - TGS reported net revenues of USD 157 million

in Q4 2017 driven by strong late sales.  Full year 2017 net revenues were USD

492 million.  Operating profit for the quarter was USD 52 million, up 23%

compared to Q4 2016.  This resulted in full year operating profit of USD 97

million, representing 20% of net revenues.

Strong free cash flow of USD 56 million in Q4 2017, up from USD 33 million in Q4

2016, resulted in a cash balance of USD 250 million in addition to an undrawn

credit facility of USD 75 million.  This industry leading financial performance

and strong cash position has enabled TGS to increase the dividend by 33% to USD

0.20 per share.

4(th) Quarter Highlights

* Consolidated net revenues were USD 157 million, compared to USD 165 million

in Q4 2016

* Net late sales totaled USD 143 million, compared to USD 145 million in Q4

2016

* Net pre-funding revenues were USD 11 million, down from USD 17 million in Q4

2016 due to lower investments, funding 41% TGS' operational multi-client

investments for the quarter

* Operational multi-client investments were USD 28 million, down from USD 46

million in Q4 2016.  In addition, investments from risk-sharing arrangements

were USD 10 million, down from USD 42 million in Q4 2016

* Operating profit (EBIT) was USD 52 million (33% of net revenues), up 23%

from USD 42 million (25% of net revenues), in Q4 2016

* Cash flow from operations was USD 137 million, up 75% from USD 79 million in

Q4 2016

* Free cash flow (after multi-client investments) was USD 56 million, up 68%

from USD 33 million in Q4 2016.

* Cash balance at 31 December 2018 was USD 250 million in addition to the

undrawn USD 75 million Revolving Credit Facility

* Earnings per share (fully diluted) were USD 0.53, up from USD 0.29 in Q4

* Quarterly dividend increased to USD 0.20 per share

2017 Full Year Financial Highlights

* Consolidated net revenues were USD 492 million, up 8% from USD 456 million

in 2016

* Net late sales totaled USD 369 million, up 11% from USD 333 million in 2016

* Net pre-funding revenues were USD 116 million, up 10% from USD 105 million

in Q4 2016, funding 44% TGS' operational multi-client investments for the

year

* Operational multi-client investments were USD 260 million, up from USD 220

million in 2016.  In addition, investments from risk-sharing arrangements

were USD 18 million, down from USD 51 million in 2016

* Operating profit (EBIT) was USD 97 million (20% of net revenues), compared

to USD 53 million (12% of net revenues), in 2016

* Cash flow from operations was USD 461 million, up 42% from USD 324 million

in 2016

* Free cash flow (after multi-client investments) was USD 123 million, up 35%

from USD 91 million in 2016

* Earnings per share (fully diluted) were USD 0.73, up from USD 0.28 in 2016

"TGS delivered industry-leading financial returns in both Q4 and the full year

2017. Our strong free cash flow performance has resulted in our cash balance

growing to USD 250 million and enables TGS to increase its quarterly dividend by

33% to USD 0.20 per share," TGS' CEO Kristian Johansen stated.

To access TGS Q3 2017 results information, please use the web links below:

·   Earnings Release

·   Presentation Slides

·   Webcast

Q4 2017 Presentation and Webcast

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

09:00 CET at the Felix Konferansesenter, Bryggetorget 3, 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.

Q4 2017 Conference Call

CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on

8 February 2018 at 15:00 CET (09:00 ET).  Attendees may want to call 5-10

minutes before to ensure registration and access.

* Norwegian attendees are invited to call 800 57933 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 888-394-8218 or +1 323-794-2149

Participants will need to quote the following confirmation code when dialing

into the conference: 6755927.

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)

* +1 719-457-0820 or + 888-203-1112 (US)

* Replay access code 6755927 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:

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

Email: will.ashby@tgs.com

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

(Norwegian Securities Trading Act).