TGS (TGS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached USD 451 million, up from USD 433 million year-over-year, driven by strong multi-client performance and improved asset utilization.

• EBITDA was USD 258 million, up from USD 239 million in Q1 2024, with net cash flow of USD 78 million.

• Net profit for the quarter was USD 9.5 million, reversing a net loss of USD 16.5 million in Q1 2024.

• Dividend of USD 0.155 per share maintained, supported by a solid balance sheet and stable payout policy.

• TGS-PGS merger completed July 2024, with full consolidation from Q3 2024.

Financial highlights

• Multi-client revenues were USD 267 million; contract revenues totaled USD 220 million.

• EBIT for Q1 2025 was USD 66.6 million (15% margin), up from USD 62.2 million year-over-year.

• Net operating expenses totaled USD 193 million; gross operating costs were USD 252 million.

• Cash and cash equivalents at period end were USD 167.4 million, up from USD 159.8 million a year earlier.

• Net debt at quarter-end was USD 453 million, down from USD 500 million in the previous quarter.

Outlook and guidance

• Multi-client investment guidance for 2025 remains at USD 425–475 million, with about 70% to be acquired using TGS capacity.

• CapEx guidance reduced to USD 135 million for the year; gross operating cost guidance lowered to USD 1 billion.

• Q2 streamer fleet utilization expected to match Q1; multi-client investments of about USD 100 million planned.

• OBN market expected to be slightly down in 2025, with more capacity shifting to multi-client projects.

• No significant signs of slowdown yet, but proactive cost and sales initiatives are in place.