TGS (TGS) Pareto Securities' 32nd Annual Energy Conference Presentation summary

Company overview and market position

• Employs 1,700 people with six core seismic streamer vessels and global offices.

• Holds a market capitalization of $1.5bn and an EBITDA of $957m as of June 2025.

• Operates the only fully integrated geophysical model, covering mature, emerging, and frontier basins worldwide.

• Invested ~$4bn in multi-client data since 2018, with advanced imaging and OBN technology.

• Maintains a strong position in offshore wind, CCS, and solar markets.

Financial performance and cost management

• Reduced gross operating costs by $150m compared to 2024, with $100m saved in 1H 2025.

• Achieved cost savings through synergies from the PGS merger and optimized asset utilization.

• Maintained EBITDA margins above 50% in H1 2025 despite revenue decline.

• Generated $89m in cash flow to equity, supporting $61m in dividend payments.

• Leverage ratio significantly below industry peers, with net debt at $479m end Q2 2025.

Industry trends and exploration outlook

• Oil and gas projected to remain over 50% of global energy demand through 2050.

• Oil demand expected to reach ~105 mb/d and gas ~500 BCFD by 2050.

• Persistent low exploration spending has led to reserve replacement ratios below 1 for a decade.

• Increased exploration needed if oil and gas remain a larger share of the energy mix.