TGS ASA — Earnings Release 2020

May 13, 2020

TGS Announces Q1 2020 Results

TGS Announces Q1 2020 Results

ASKER, NORWAY (13 May 2020) - TGS today reported net segment revenues of USD

152 million for Q1 2020, a 3% decline compared to Q1 2019. The quarter saw solid

pre-funding revenues driven by Latin America and North America onshore, while

late sales were hurt by the COVID-19 crisis and the large oil price drop towards

the end of the quarter.

At USD 125 million, EBITDA* in Q1 2020 came in 1% above Q1 2019 as a result of

favorable development in operating costs.

TGS continues to deliver industry-leading Return on Average Capital Employed

(ROACE) with 17% annual return as per the end of Q1 2020.

TGS' balance sheet remains strong, with a cash holding of USD 248 million at 31

March 2020, allowing the Company to pay a dividend of USD 0.125 per share in Q2

2020, despite the challenging market conditions.

On 8 April 2020 TGS announced several measures in response to the market

turmoil. The highlights are:

* Cost reduction: Centralization of offices, a global salary freeze, temporary

cessation of employee bonuses and right sizing of the organization leading

to a 2020 cost base that is approximately 35% below the 2019 pro-forma

numbers

* Multi-client investments: 2020 guidance reduced to approximately USD 325

million from USD 450 million by postponing projects and reducing scope

* Dividends: Q2 2020 dividend reduced to USD 0.125 per share from USD 0.375

per share in Q1 2020

"Q1 2020 was impacted by the COVID-19 crisis and the sharp drop in oil price.

Protecting the health and safety of our employees at the same time as ensuring

minimal disruption to the business have taken top priority, and in that regard,

I'm extremely pleased with how the organization has performed during these

challenging times. With the announced measures to protect cash flow the Company

is well positioned to use the difficult market conditions to form the basis for

further long-term value creation and continued industry-leading returns."

A pre-recorded presentation of the Q1 2020 results by CEO Kristian Johansen and

CFO Fredrik Amundsen can be found at www.tgs.com (http://www.tgs.com) or at this

web address:

https://www.tgs.com/hubfs/Quarterly%20earnings%20releases/Q1%202020%20Results/TG

S-Q120-Earnings-Presentation.mp4

CEO Kristian Johansen and CFO Fredrik Amundsen will 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 3333009262

USA:                              +1 8338230589

* 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 Q4 2019 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

Sven Børre Larsen, EVP Strategy and M&A

Tel.: +47 909 43 673

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.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act