TGS ASA — Earnings Release 2021

May 12, 2021

TGS Announces Q1 2021 Results

TGS Announces Q1 2021 Results

OSLO, Norway (12 May 2021) - TGS today reported interim financial results for Q1

Net IFRS revenues amounted to USD 186 million in Q1 2021, an increase of 256%

compared to Q1 2020. EBITDA was USD 162 million and the operating result was USD

69 million, compared to USD 26 million and USD -58 million, respectively, in Q1

Net segment revenues (1) amounted to USD 75 million in Q1 2021, compared to

USD152 million in Q1 2020. Segment EBITDA was USD 51 million versus USD 126

million in the same quarter of 2020, while the segment operating result amounted

to USD -20 million, compared to USD - 19 million in Q1 2020.

Free-cash flow (2) amounted to USD 84 million in Q1 2021, up from USD 1 million

in Q1 2020. Including shareholder distribution of USD 19 million the cash

holding increased by USD 58 million to USD 254 million on 31 March 2021.

The solid financial position allows TGS to maintain the quarterly dividend at

USD 0.14 per share and continue its share repurchase program with a remaining

value of up to USD 17 million.

"Despite a substantial increase in the oil price over the past six months,

exploration spending remains muted. Our clients are indicating that their strong

cash flow will mainly be directed at dividends, share buybacks and deleveraging

balance sheets. While we remain cautiously optimistic for a pick-up in activity

towards the end of the year, we expect our near-term organic multi-client

investments to be lower, partly due to the use of supplier risk-sharing and JVs.

As a result, we continue to add high volumes of data to our library and generate

strong cash flow," says Kristian Johansen, CEO of TGS.

"Our New Energy Solutions initiative is progressing rapidly, and we are excited

to announce 4C Offshore as the first acquisition in the renewable area. The

acquisition fits perfectly with our ambition to become the leading global

provider of energy data and insights to support decision-making processes across

the energy value chain."

Based on the above, 2021 guidance is revised as follows:

* Multi-client investments of between USD 150 - 180 million (previously USD

200 - 230 million)

* Continued sector outperformance on cash flow and ROACE

* Industry-leading distribution to shareholders

A pre-recorded presentation of the results and business update featuring

CEO Kristian Johansen, CFO Fredrik Amundsen and EVP of NES & Operations Jan

Schoolmeesters can be viewed at http://www.tgs.com.

Today at CEST 3:00 pm Kristian Johansen, CEO at TGS, will host a conference call

to go through the update and answer questions. We encourage attendees to call in

5-10 minutes before CET 3:00 pm to ensure registration and access.

Telephone conference dial-in details:

Norway:                       +47 23 50 02 36

United Kingdom:         +44 333 300 92 63

USA:                            +1 833 526 83 97

For more information, visit TGS.com (http://www.tgs.com) or contact:

Sven Børre Larsen

SVP Strategy

Tel: +47 90 94 36 73

E-mail: investor@tgs.com (mailto:investor@tgs.com)

Notes

1 - IFRS versus Segment Reporting:

The main difference between IFRS and Segment reporting relates to revenue

recognition. Under IFRS revenue recognition generally is deferred until project

completion and delivery to the customer when performance obligations are met.

Under Segment reporting, net revenue from projects-in-progress is recognized

based on Percentage of Completion (POC). Revenue recognition has subsequent

effects on the recognition of amortization of the multi-client library. Please

see annual report for a complete description of the Company's accounting

principles.

Adjustments between IFRS and Segment revenue numbers for Q1 2021:

IFRS reported revenue: USD 186 million

- Revenue recognized from performance obligations met during Q1 for completed

projects: USD 157 million

+ Revenue recognized under POC during Q1: USD 46 million

\= Preliminary net segment reported revenue: USD 75 million

Differences in EBIDTA and operating results between IFRS and segment reporting

are caused by the aggregate differences in revenues and the resulting impact on

amortization.

2 - Defined as Cash flow from operations after investments in the multi-client

library.

About TGS

TGS provides scientific data and intelligence to companies active in the energy

sector. In addition to a global, extensive and diverse energy data library, TGS

offers specialized services such as advanced processing and analytics alongside

cloud-based data applications and solutions.

Forward Looking Statement

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 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.