TGS ASA

Quarterly Report • Mar 24, 2023

Changes from Interim Earnings Release to Annual Report 2022

Certain changes to the annual accounts for 2022 have been implemented following the release of the interim report for Q4 2022 on 9 February 2022. The multi-client library value in the Purchase Price Allocation (PPA) related to the acquisition of Magseis Fairfield ASA has been adjusted downwards, leading to changes in goodwill and equity. This has also result in lower straight-line amortization. Furthermore, certain deferred tax assets and deferred tax liabilities have been netted, and adjustments have been made to valuation allowances related to deferred tax assets.

Income Statement

	Earnings Release		Annual Report
(All amounts in USD 1,000s unless noted otherwise)	2022	Change	2022
Revenues	716,633		0 716,633
Cost of goods sold - proprietary and other	37,527		0 37,527
Straight-line amortization of the multi-client library	153,545	1,298	152,247
Accelerated amortization of the multi-client library	201,702		0 201,701
Impairment of the multi-client library	19,314		0 19,314
Personnel costs	86,407		0 86,407
Other operating expenses	53,843		0 53,843
Depreciation, amortization and impairment	33,561		0 33,561
Total operating expenses	585,899	1,298	584,599
Operating profit	130,734	-1,298	132,034
Financial income and expenses
Financial income	2,396	0	2,396
Financial expenses	-8,508	0	(8,508)
Gains/(losses) from JV	1,251	0	1,251
Net exchange gains/(losses)	1,692	0	1,692
Net financial items	-3,169	0	-3,169
Profit before taxes	127,565	-1,298	128,865
Taxes	40,898	0	40,898
Net income	86,667	-1,298	87,967

Balance Sheet

	Earnings Release
(All amounts in USD 1,000s)	31 Dec 2022	Change	31 Dec 2022
Goodwill	371,712	12,937	384,649
Multi-client library	591,675	-16,338	575,337
Other intangible assets	65,805	0	65,805
Deferred tax asset	131,534	-49,338	82,196
Buildings, Machinery and equipment	145,098	0	145,098
Right of use asset	59,619	0	59,619
Sublease asset	672	0	672
Other non-current assets	11,711	0	11,711
Total non-current assets	1,377,826	-52,739	1,325,087
Accounts receivable	142,781	0	142,781
Accrued revenues	97,538	0	97,538
Inventory	6,575	0	6,575
Other current assets	78,463	0	78,463
Cash and cash equivalents	188,452	0	188,452
Total current assets	513,810	0	513,810
TOTAL ASSETS	1,891,636	-52,739	1,838,897
Share capital	4,259	0	4,259
Other equity	1,238,306	-2,802	1,235,504
Total equity	1,242,565	-2,802	1,239,763
Other non-current liabilities	42,408	0	42,408
Lease liability	28,609	0	28,609
Deferred taxes	73,068	-49,938	23,130
Total non-current liabilities	144,085	-49,937	94,148
Short term interest bearing debt	44,748	0	44,748
Accounts payable and debt to partners	72,862	0	72,862
Taxes payable, withheld payroll tax, social security and VAT	77,223	0	77,223
Lease liability	38,350	0	38,350
Deferred revenue	126,462	0	126,462
Other current liabilities	145,341	0	145,341
Total current liabilities	504,986	0	504,986
TOTAL EQUITY AND LIABILITIES	1,891,636	-52,739	1,838,897