Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — TGS — Q1 2022 Earnings Presentation
28 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, May 12, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 Financial Results Kristian Johansen Sven Børre Larsen CEO CFO 12 May 2022
Slide 2: Forward-looking Statements
Forward-looking Statements All statements in this presentation 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 no
Slide 3: Highlights
Highlights • Strong late sales of USD 70.5 million in Q1 2022 compared to USD 21.9 million in Q1 2021 • Total revenue of USD 132.2 million compared to USD 142.4 million in Q1 2021 due to lower point-in-time recognition of early sales • POC revenue of USD 114 million compared to USD 75 million in Q1
Slide 4: Operational Highlights
Operational Highlights
Slide 5: Q1 2022 Multi-client Operations
Q1 2022 Multi-client Operations Engagement 2 OBN1 • OBN survey of close to 4,000 sqkm • Utilizing underlying WAZ data to Sarawak 3D3 provide significant quality uplift • Data acquisition completed in • Phase 1 comprises 8,609 sqkm of March 2022 3D data • Final data available in Q3 2022 • Acquisition
Slide 6: New Project in Canada
New Project in Canada • Continuing to invest in East Canada in partnership with PGS • The South Bank Ph2 3D – New acquisition in Newfoundland ahead of license round • Continues to build the East Coast Canada data library • Program will cover 10,000 sq km of prospective area • Data acquisition is pla
Slide 7: Energy transition provides new opportunities for TGS
Energy transition provides new opportunities for TGS • Combination of organic and inorganic growth • Wind AXIOM becoming key insights platform for offshore wind development • 4C growth story continues • CCS growth opportunities require subsurface data and monitoring • Goal is to become a leading Ene
Slide 8: TGS' Industry-Leading ESG Performance
TGS’ Industry-Leading ESG Performance NEW OBX ESG Index OBX Included on Euronext Group’s OBX ESG Index as one of 40 blue-chip companies listed in Norway demonstrating best ESG ESG practices *As of May 2022 Sustainalytics Since 2016, TGS has been committed to the State Street ESG Risk Rating UN Globa
Slide 9: Financials
Financials
Slide 10: Changes in Q1 Earnings Release from prior reporting
Changes in Q1 Earnings Release from prior reporting • Definition Revenue • Changes the definition of revenue from “Pre-funding revenue” to “Early sales” • Early sales now include both EP and LP, whereas Pre-funding revenue only included EP. • Late sales will now include late sales and data managemen
Slide 11: Changes in Q1 Earnings Release from prior reporting
Changes in Q1 Earnings Release from prior reporting • New Alternative Performance Measures (APMs) • Contract backlog: Aggregate value of revenue from customer contracts yet to be recognized • Contract inflow: Aggregate value of revenue from new contracts entered over a given period of time • PoC rev
Slide 12: Operating revenues
Operating revenues Early sales Revenues Late sales Revenues 180 80 160 70 140 60 120 50 100 MUSD MUSD 169 40 80 73 70 30 60 117 105 47 40 20 58 30 28 28 25 25 20 36 43 46 10 22 16 28 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 2020 2020 2020
Slide 13: Operating result and Cash Flow
Operating result and Cash Flow Operating Expenses1 Amortization and impairments 30 180 160 25 140 20 120 100 15 80 165 26 27 147 144 MUSD MUSD 24 22 24 126 10 20 60 114 17 40 89 14 60 62 5 20 0 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 14: Multi-Client Library
Multi-Client Library Operational investments Net Book Value Multi-Client Library 90 1,140 78 1,200 1,078 80 966 70 64 1,000 915 893 57 54 805 60 800 705 688 50 45 39 40 34 33 600 MUSD MUSD 30 400 20 10 200 - - Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2020 Q3 2020 Q4 2020 Q1
Slide 15: Income Statement
Income Statement (MUSD) Q1 2022 Q1 2021 Change Early sales 57.7 116.5 -51% Late sales 70.5 21.9 222% Proprietary sales 4.0 4.0 1% Total revenues 132.2 142.4 -7% Cost of goods sold 1.2 1.3 -5% Personnel cost 17.5 14.1 25% Other operational costs 12.4 8.2 50% EBITDA 76% 101.0 118.8 -15% Straight-line
Slide 16: Balance Sheet
Balance Sheet Change from Balance sheet 31-Mar-22 31-Mar-21 31-Dec-21 31 Dec 21 Goodwill 304.0 288.4 304.0 0% Multi-client library 687.6 914.8 704.9 -2% Deferred tax asset 89.3 76.3 95.9 -7% Other non-current assets 88.8 104.5 89.8 -1% Total non-current assets 1,169.6 1,383.9 1,194.5 -2% Cash and ca
Slide 17: Q1 2022 Cash Flow Statement
Q1 2022 Cash Flow Statement See the energy at TGS.com - 17 -
Slide 18: Dividends and Share Buybacks
Dividends and Share Buybacks Dividend per share1 Dividend yield2 1.6 6.0 % NOK 8.5 NOK 8.0 5.2% 1.4 4.9% 5.0 % 4.5% 4.6% NOK 8.5 1.2 USD 1.08 4.0% 4.2% NOK 6.0 3.9% 4.0% 4.0 % 3.6% 3.7% NOK 5.0 USD per share 1.0 3.5% USD 0.8 2.8% USD 0.75 0.8 USD 0.6 3.0 % 2.6% NOK 4.0 USD 0.6 USD 0.56 0.6 2.0 % 0.4
Slide 19: Market Outlook
Market Outlook
Slide 20: Progress on the foundations for recovery
Progress on the 5 foundations for recovery #1 Energy demand continues to rise #2 Significant underinvestment in oil & gas in the past #3 Exploration success #4 Improving licensing round activity #5 Increased E&P spending forecasts See the energy at TGS.com - 20 -
Slide 21: Energy demand continues to rise
#1 Energy demand continues to rise Primary energy consumption • Global Energy consumption will continue to increase over the next decades across a variety of economic scenarios as population and economic growth outpace energy efficiency gain • Strong growth post-COVID • Power consumption in China (Y
Slide 22: Significant under-investments in oil and gas in the past
#2 Significant under-investments in oil and gas in the past Global liquids supply versus demand at current spending • J.P. Morgan Annual Energy Outlook April 2022 109 107 • World needs USD 1.3 trillion incremental energy 105 investment by 2030 103 mb/day • All energy sources from renewables to oil a
Slide 23: Exploration success - frontier exploration paying off
#3 Exploration success - frontier exploration paying off 21 February 2022 24 February 2022 • Total and Apache announced a significant oil and associated gas • Total announced a significant 26 April 2022 discovery offshore Suriname discovery of light oil and associated • Exxon announced another three
Slide 24: Improving License Round Activity
#4 Improving License Round Activity Europe Norway: • 2022 APA round – Q2 2022 (open) Africa North America Angola: Canada: • 2021 round – May 2022 (awards) • Flemish Pass/Grand Banks/Jeanne d’Arc - Q4 2022 (close) • 2023 round – 8 blocks • 2025 round – 10 blocks Asia-Pacific Gabon: • Open Door Austra
Slide 25: Increased E&P spending forecasts
#5 Increased E&P spending forecasts E&P capex1 • E&P companies continuing to increase 180 spending • Combined growth of 22% expected for 2022 160 22% 140 2% • Several companies have guided significantly 120 up on 2022 E&P spending lately 100 • Shell, TotalEnergies, ConocoPhillips, USDbn 80 Continent
Slide 26: Contract Backlog & Inflow
Contract Backlog & Inflow Contract Backlog 700 625 618 600 592 543 Timing of expected recognition of contract backlog 500 468 446 400 334 276 293 300 200 100 30% - Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 2023+ 40% Contract Inflow Q2 2022 180 163 160 140 131 120 107 Q4
Slide 27: Summary
Summary • Strong late sales of USD 70.5 million in Q1 2022 compared to USD 21.9 million in Q1 2021 • Total revenue of USD 132.2 million compared to USD 142.4 million in Q1 2021 due to lower point-in-time recognition of early sales • POC revenue of USD 114 million compared to USD 75 million in Q1 202
Slide 28: Thank you
Thank you TGS?