TGS (TGS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues were $308 million, down 19% year-over-year, mainly due to lower multi-client library sales and operational challenges, with EBITDA at $153 million and margin improving to 50% from 46% due to cost-cutting and business optimization.

• Net loss of $60 million versus a profit last year, impacted by higher amortization and costs from the PGS acquisition.

• Vessel capacity reduced from seven to six, with sale and stacking of vessels as part of ongoing business optimization.

• Dividend maintained at $0.155 per share, with over $1.6 billion returned to shareholders since 2010.

• Positive free cash flow of $11 million achieved despite revenue challenges.

Financial highlights

• Multi-client sales were $137 million, down from $191 million year-over-year; multi-client investments rose to $114 million from $92 million.

• IFRS net income was negative $60 million, compared to positive $35.2 million in Q2 2024.

• Imaging and technology division saw strong growth, with gross imaging revenues up to $32 million from $25 million and external imaging revenues nearly doubling.

• Cash and cash equivalents at quarter-end were $167 million, net debt just below $480 million.

• Order backlog reduced from $600 million to $425 million, with expectations for improvement in Q4.

Outlook and guidance

• Multi-client investment guidance for 2025 remains $425–$475 million; CapEx guidance unchanged at $135 million.

• Gross operating cost target reduced to $950 million for the year, down from $1 billion.

• Improved 3D streamer fleet utilization expected for the full year, with lower OBN activity versus 2024.

• Order inflow at $133 million (down from $368 million); order backlog at $425 million (down from $612 million year-over-year).

• Long-term market outlook remains positive, but short-term is sensitive to oil price volatility.