TGS ASA

Earnings Release • Jul 17, 2025

TGS announces Q2 2025 results

TGS announces Q2 2025 results

Financial highlights:

* Multi-client revenues impacted by several library data purchases being

postponed and low client commitment to ongoing projects

* Challenging operational conditions for a large contract project and lower

than expected JV partner participation for certain multi-client programs

negatively affected contract revenues

* Order inflow of USD 133 million during Q2 2025 - total order backlog of USD

425 million

* Net cash flow of USD 11 million in Q2 2025, compared to USD -13 million in

Q2 2024

* Maintaining a stable dividend payment of USD 0.155 per share to be paid in

Q3 2025

* Gross operating costs for 2025 expected to be approximately USD 950 million

compared to previous guidance of approximately USD 1,000 million - reduction

driven by further efficiency gains and vessel scheduling

"The Q2 2025 results were negatively impacted by several factors. End-of-quarter

data licensing came in below expectations, with several data licensing deals

being postponed. Further, we encountered challenging operational conditions on

one of our streamer projects, negatively impacting revenue recognition. Finally,

lower-than-expected partner participation in certain multi-client projects

resulted in lower recognition of contract revenues and higher multi-client

investments. The guidance for gross operating expenses has been reduced further,

as we continue to review our cost base and optimize asset allocation. We are in

the process of selling the Ramform Explorer and the Ramform Valiant, and

stacking the Ramform Vanguard. Although significant macroeconomic uncertainty

and high oil price volatility during Q2 caused our clients to be more cautious

in the short term, the long-term need for more exploration remains intact. With

falling remaining reserve life, many large E&P companies will face declining

production rates unless more reserves are added and brought on stream. As a

result, we remain optimistic for the long-term opportunities for TGS," says

Kristian Johansen, CEO of TGS

Management presentation

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

at 09:00 a.m. CEST. The presentation is webcasted live. Access and registration

for webcast attendees are available by copying and pasting the link below into

your browser, or use the link on the front page of www.tgs.com:

https://channel.royalcast.com/landingpage/hegnarmedia/20250717_2/

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

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

The Q2 2025 earnings release and presentation are available on www.newsweb.no

and www.tgs.com.

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

Bård Stenberg

Vice President IR & Communication

Tel: +47 992 45 235

E-mail: investor@tgs.com

About TGS

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

sector. With leading-edge technology and solutions spanning the entire energy

value chain, TGS offers a comprehensive range of insights to help clients make

better decisions. Our broad range of products and advanced data technologies,

coupled with a global, extensive and diverse energy data library, make TGS a

trusted partner in supporting the exploration and production of energy resources

worldwide. For further information, please visit www.tgs.com

(https://www.tgs.com/).

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 volatile market conditions, investment opportunities in new and existing

markets, demand for licensing of data within the energy industry, operational

challenges, and reliance on a cyclical industry and principal customers. 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.