TGS ASA — Earnings Release 2021

Apr 13, 2021

TGS Q1 2021 Earnings Update

TGS Q1 2021 Earnings Update

OSLO Norway (13 April 2021) - Based on preliminary reporting from operating

units, TGS management expects net IFRS revenues* for the first quarter of 2021

to be approximately USD 186 million, up from USD 52 million in Q1 2020. Net

segment revenues* are expected to be approximately USD 75 million, compared to

USD 152 million in Q1 2020.

Kristian Johansen, CEO at TGS, stated, "As expected the challenging market

conditions continued in Q1 2021. However, we remain cautiously optimistic for

the remainder of the year, with the higher oil prices expected to result in

higher activity level in the latter part of the year. Furthermore, I am pleased

to note that we continue to outperform our cost expectations, which together

with relatively low investments of approximately USD 37 million, resulted in a

solid free cash flow and a cash balance in excess of USD 250 million at quarter

close. Thus, our confidence in a strong cash flow development for the year

continues to grow."

TGS will report the Q1 2021 financial results on 12 May 2021.

* Following recent notification from The Financial Supervisory Authority of

Norway (Finanstilsynet) TGS will from 2021 increase emphasis on IFRS in its

financial reporting to the market. The Company will continue to provide segment

information for historic comparison and as alternative performance measures of

the business as such measures are commonly used throughout the industry, and

TGS' management believes they better reflect the ongoing activity in projects-

in-progress. 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 preliminary IFRS and Segment revenue numbers for Q1 2021:

Preliminary 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

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)