TGS ASA — Earnings Release 2020

Jul 23, 2020

TGS Announces Q2 2020 Results

TGS Announces Q2 2020 Results

OSLO, NORWAY (23 July 2020) - TGS today reported its Q2 2020 results.

"Despite the unprecedented weak market conditions in Q2, TGS generated improved

cash flow from operations compared to Q2 2019. During the quarter, TGS' cost

level has been reduced significantly in light of the weak market conditions.

Lower cost and a continued strong balance sheet, place TGS in a unique position

to continue generating strong cash flow and industry-leading return on capital,"

says Kristian Johansen, CEO at TGS.

Net segment revenues* for the second quarter came in at USD 96 million, a 55%

decline compared to Q2 2019. Investments in the multi-client library totaled USD

77 million and were supported by USD 38 million (49%) in prefunding. Q2 2020

EBITDA adjusted for non-recurring items was USD 69 million, down 61% from USD

178 million in Q2 2019 (pro-forma). The company completed its previously

announced restructuring during Q2 and recognized non-recurring items of USD

16.8 million and impairment of selected projects in the multi-client library of

USD 30 million. The Cash balance ending June 2020 was USD 198 million and

supports continued dividend of USD 0.125 per share.  Please see the attached

report for further details.

A pre-recorded presentation of the Q2 2020 results by CEO Kristian Johansen and

CFO Fredrik Amundsen can be found on the homepage at www.tgs.com

(http://www.tgs.com) or at this web

address: https://www.tgs.com/hubfs/Quarterly%20earnings%20releases/Q2%202020%20R

esults/TGS-2020-Q2-Earnings-Release-02.mp4

CEO Kristian Johansen and CFO Fredrik Amundsen will also host a conference call

today at 1500 CEST to go through the results and answer questions. We encourage

attendees to call in 5-10 minutes before 1500 CEST to ensure registration and

access.

Telephone conference dial-in details:

Norway:                             +47 23963688

United Kingdom:                 +44 3333009034

USA:                                  +1 8335268347

* Figures based on Segment reporting, where sales committed prior to completion

of the project are recognized on a Percentage of Completion basis. Please refer

to the full Q2 2020 report for statements prepared according to IFRS.

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 (http://www.tgs.com) or

contact:

Fredrik Amundsen, CFO

Tel.: +47 995 89 882

E-mail: investor@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 several 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, as

well as volatile market conditions, which have been exacerbated by the COVID-19

pandemic and the severe drop in oil prices.  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.