TGS ASA

Earnings Release • Oct 27, 2022

TGS announces Q3 2022 results

TGS announces Q3 2022 results

OSLO, Norway (27 October 2022) - TGS today reported interim financial results

for Q3 2022.

Total revenue amounted to USD 135 million in Q3 2022 versus USD 200 million in

Q3 2021.

The late sales portion of revenues was USD 65 million, representing a

substantial increase compared to the USD 31 million reported for Q3 2021.

EBITDA was USD 97 million, and the operating result was USD 1 million, compared

to USD 167 million and USD 18 million, respectively, in Q3 2021.

Percentage-of-completion (PoC) revenue (1) amounted to USD 119 million in Q3

2022, a 95% increase from USD 61 million in Q3 2021.

Order inflow was USD 140 million in Q3 2022, compared to USD 30 million in the

same quarter of 2021.

Free cash flow (2) amounted to USD 11 million in Q3 2022, versus USD 8 million

in Q3 2021. After dividend payment of USD 16 million and cash outlays related to

acquisitions of USD 41 million, the cash balance totaled USD 192 million on 30

September 2022 versus USD 198 million a year earlier.

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

USD 0.14 (NOK 1.48) per share in Q3 2022, as well as providing flexibility to

execute the strategic M&A transactions announced in early July 2022.

The company closed the acquisitions of Prediktor and ION Geophysical's EPTS

business during Q3 2022. In addition, TGS announced on 29 September 2022, the

take-over of Magseis Fairfield shares representing approximately 75% of the

outstanding shares. Settlement of the offer was completed and announced on 11

October 2022. TGS is in the process of preparing a mandatory cash offer for the

remaining shares of Magseis Fairfield.

"With year-over-year growth of 108% in lates sales, the strong development we

saw in the first half of the year continued in the third quarter. I'm also

pleased that cash flow remains robust. The net cash position was USD 192 million

on 30 September 2022, despite substantial inorganic investments during the

quarter. We are excited about welcoming the three recent acquisitions to TGS.

Magseis Fairfield, ION and Prediktor all fit perfectly with our strategy of

being the leading provider of data and insights to the energy industry, and will

more than double our existing backlog," says Kristian Johansen, CEO of TGS.

CEO Kristian Johansen and CFO Sven Børre Larsen will present the results today

at CEST 09:00 at the House of Oslo (the auditorium), Ruseløkkveien 34, 0251

Oslo.

The event will be streamed online at the following web address:

https://channel.royalcast.com/landingpage/hegnarmedia/20221027_9/.

A recorded version of the entire presentation will be available on TGS.com

(http://www.tgs.com) after the live event.

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

Sven Børre Larsen

CFO

Tel: +47 90 94 36 73

E-mail: investor@tgs.com

Notes

1 - Percentage-of-completion (PoC) revenue:

PoC revenue are measured by applying the percentage-of-completion method to

Early sales, added to Late sales and Proprietary sales. This is based on the

principles applied prior to the implementation of IFRS 15, Revenue from Customer

Contracts, on 1 January 2018.

Adjustments between IFRS and PoC revenue numbers for Q3 2022:

IFRS reported revenue: USD 135 million

- Revenue recognized from performance obligations met during Q3 for completed

projects: USD 55 million

+ Revenue recognized under PoC during Q3: USD 39 million

\= PoC reported revenue: USD 119 million

2 - Defined as Cash flow from operations after organic 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.