TGS ASA — Earnings Release 2019

Feb 12, 2020

TGS announces strong cash flow and 39% dividend growth

TGS announces strong cash flow and 39% dividend growth

ASKER, NORWAY (12 February 2020) - TGS today reported net segment revenues* of

USD 232 million for Q4 2019, a growth of 23% compared to USD 188 million in Q4

2018. The strong performance was mainly driven by improved sales momentum in

Latin America and North America.

EBITDA* for Q4 2019 was USD 194 million excluding restructuring costs of USD 5

million (margin of 83%) compared to USD 200 million in Q4 2018 (margin of 83%).

Cash flow was strong during the quarter and the net cash balance increased to

USD 323 million compared to USD 274 million at the end of 2018. This supports a

dividend of USD 0.375 per share to be paid in Q1 2020, a growth of 39%.

Furthermore, TGS continues to deliver industry leading ROACE of 19% in 2019, up

from 18% a year earlier.

The acquisition of Spectrum is moving ahead as planned and USD 20 million in

synergies have been identified and are in the process of being realized in 2020.

Kristian Johansen, CEO of TGS, stated: "TGS delivered another solid quarter in

Q4 2019 despite E&P companies' continued focus on cost control and capital

discipline. I'm particularly pleased to see that we are continuing our strong

performance in the Latin America region, where the company is well positioned to

continue benefiting from our customers' need to replenish reserves, targeting

prolific and high potential basins. Furthermore, our sales pipeline for Q1 2020

looks promising, with high vessel activity combined with solid pre-funding."

Kristian Johansen and Dean Zuzic, CFO, will present the results on 12 February

2020 at 09:00 CET at the Felix Conference Center, Aker Brygge, Oslo, Norway. The

presentation is open to the public and can be followed live on the internet at

www.tgs.com.

* 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).

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 principle 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:

Dean Zuzic

Chief Financial Officer

Tel: +47 41 43 35 60

Email: investor@tgs.com (mailto:investor@tgs.com)

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act