Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — TGS — Q4 2023 Earnings Presentation
34 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Feb 15, 2024
Slide 1: Q4 2023 Results
FEBRUARY 15, 2023 EARNINGS RELEASE Q4 2023 Results Kristian Johansen, CEO / Sven Børre Larsen, CFO O S L O , N O R WAY TGS.com
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 not
Slide 3: Q4 highlights
SUMMARY Q4 highlights Total POC revenues of USD 206 million compared to USD 227 million in Q4 2022 • Late sales of USD 59 million in Q4 2023 vs. USD 137 million in Q4 2022 • POC Early sales of USD 59 million compared to USD 31 million in Q4 2022 • Proprietary revenues of USD 88 million compared to U
Slide 4: 2023 POC highlights
2023 POC highlights Continued strong Good performance by Solid backlog Early Sales momentum Acquisition 128% y/y 26% y/y 21% y/y DES continuing progress Strong operational Robust cash flow performance and cost control 62% y/y EBIT 18% FCF $154 million
Slide 5: Significant growth in full-year 2023 revenues
Significant growth in full-year 2023 revenues • Growth of 14% compared to 2022 Pro-forma revenues* 1200 +14% • Significant change in revenue mix 1000 • Proprietary sales up 25% • Early sales up 128% 800 • Late sales down 36% (partly caused MUSD by lack of transfer fees) 600 968 400 848 642 539 200 0
Slide 6: Operational Highlights
EARNINGS RELEASE Operational Highlights Q4 2023
Slide 7: OBN contracts secured in the quarter
OBN contracts secured in the quarter • Awarded two 4D surveys in the GoM • We acquire these surveys simultaneously utilizing the same vessels, possible by deploying the full spreads and then acquire with the source vessels. • Expected completed in Q2 2024 • New contract for a repeat customer in the
Slide 8: Engagement Phase 5 in the U.S. Gulf of Mexico
Engagement Phase 5 in the U.S. Gulf of Mexico • Seventh program in JV with SLB; involving 157 OCS blocks covering 3,650 km2 • Dataset supports new and existing leaseholders • Application of elastic full-waveform inversion (eFWI) • Project commenced in Q1 2024 • Fast track data available H2 2024 • Su
Slide 9: Sabah 2D Offshore Malaysia
Sabah 2D Offshore Malaysia • Collaboration with JV partners PGS and SLB • Seventh phase of multi-year program includes: • > 5,000 km of new 2D seismic data acquisition • 2,600 km of legacy seismic data processing • 2,800 km2 of 2D-cubed processing • Acquisition completes in Q1 2024 • Fast track data
Slide 10: Continued high data acquisition activity in Q4 2023
Multi-client project OBN operation DES operation Continued high data acquisition activity in Q4 2023 10
Slide 11: PGS transaction update
PGS transaction update • Transaction approved with close to 100% majority by Extra-ordinary General Meetings of both companies • Ongoing regulatory review in Norway and UK • Norwegian Competition Authority has resolved to continue its assessment of the transaction in a Phase II review • Post/merger
Slide 12: Norwegian and UK Merger Competition Process
Norwegian and UK Merger Competition Process • Filing with the Norwegian Competition Authority (NCA) and the UK Competition & Markets Authority (CMA) • Filing is voluntary in the UK, but the CMA called for a filing • Expect the merger to close during Q2 2024 Phase one Phase two Norwegian Competition
Slide 13: Financials
EARNINGS RELEASE Financials Q4 2023
Slide 14: POC Revenues by Type
POC Revenues by Type Early Sales Revenue Late Sales Revenue 120 160 140 100 120 80 100 MUSD MUSD 60 80 98 137 88 60 40 66 97 55 59 40 76 72 65 62 59 20 34 33 39 53 46 31 20 0 0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 15: POC Revenues by Business Unit
POC Revenues by Business Unit Multi-client & Imaging Digital Energy Solutions 180 20 18 160 16 140 14 120 12 MUSD MUSD 100 10 80 164 156 18 8 128 138 60 124 113 112 107 110 6 12 11 40 9 10 4 7 7 7 8 20 2 0 0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2021 Q1 2022 Q2 2
Slide 16: Operating Costs and POC EBITDA
Operating Costs and POC EBITDA Cost of Goods Sold Personnel Costs 80 40 70 35 60 30 50 25 MUSD MUSD 40 20 72 34 34 30 63 15 30 31 32 58 20 10 21 18 18 27 25 14 10 5 8 8 0 1 2 0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 17: Amortization, Depreciation and POC EBIT
Amortization, Depreciation and POC EBIT POC Amortization Depreciation 160 45 140 40 120 35 100 71 30 MUSD MUSD 25 80 5 9 2 20 38 60 36 35 27 1 33 9 32 1 15 22 15 13 8 40 21 10 19 19 17 20 43 36 39 39 37 40 40 41 43 5 5 5 5 6 0 0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Slide 18: Bridge POC Revenues to IFRS Revenues
Bridge POC Revenues to IFRS Revenues POC revenues Revenues Revenues IFRS revenues recognized from recognized performance according to POC obligations met in during Q4 23 18 Q4 23
Slide 19: IFRS – Profit & Loss
IFRS – Profit & Loss (MUSD) Q4 2023 Q4 2022 Change YTD 2023 YTD 2022 Change Early Sales 42.5 22.8 86% 136.6 257.3 -47% Late Sales 58.8 136.6 -57% 238.7 374.1 -36% Proprietary Sales 88.1 59.6 48% 419.0 85.2 392% Total revenues 189.4 219.0 -14% 794.3 716.6 11% Cost of goods sold 24.6 27.1 -9% 217.4 37
Slide 20: IFRS – Balance Sheet
IFRS – Balance Sheet Change from (MUSD) Q4 2023 Q3 2023 Q3 2023 Q4 2022 Goodwill 384.6 384.6 0% 384.6 Multi-client library 753.1 745.0 1% 575.3 Deferred tax asset 67.9 90.1 -25% 82.2 Right-of-use assets 78.2 54.7 43% 59.6 Other non-current assets 229.7 226.9 1% 223.3 Total non-current assets 1,513.5
Slide 21: IFRS – Cash Flow
IFRS – Cash Flow (MUSD) Q4 2023 Q4 2022 Change YTD 2023 YTD 2022 Change Cash flow from operating activities: Profit before taxes 15.6 69.4 -78% 51.9 128.9 -60% Depreciation/amortization/impairment 109.8 77.6 41% 330.6 406.8 -19% Changes in accounts receivable and accrued revenues 99.5 -27.7 -459% 83
Slide 22: Dividends
Dividends Dividend Per Share 1 Dividend Yield 2 6.0% 1.6 1.4 5.0% NOK 8.0 NOK 8.5 1.2 NOK 8.5 4.0% 1.0 USD per share USD 1.08 NOK 6.0 NOK 5.0 0.8 3.0% USD 0.8 5.2% USD 0.75 4.9% 0.6 4.5% 4.6% 4.3% NOK 4.0 2.0% 4.0% 3.9% 4.0% 3.8% USD 0.6 USD 0.56 3.5% 3.6% 3.7% USD 0.56 0.4 USD 0.6 USD 0.56 2.8% 2.6
Slide 23: Outlook
EARNINGS RELEASE Outlook Q4 2023
Slide 24: Positive 2024 Outlook
Positive 2024 Outlook • Continued tight oil market E&P capex guidance large E&P companies* • Optimistic signals from customers • E&P spending guidance indicating continued growth in 2024 2024E 7% • Due to cost increases in the E&P value chain, seismic spending has made up a lower-than-normal portion
Slide 25: Strong growth expected for mid- and deepwater OBN market
Strong growth expected for mid- and deepwater OBN market 1600 1400 1200 1000 MUSD High case 800 Mid case Low case 600 400 200 0 2020 Revenue 2021 Revenue 2022 Revenue 2023 Revenue 2024E Revenue 25
Slide 26: Acquisition activity plan
Acquisition activity plan OBN Crew 1 OBN Crews OBN Crew 2 OBN Crew 3 OBN Crew 4 RM Source 1 RM and Source RM Source 2 RM Source 3 Q1 2024 Q2 2024 Q3 2024 Q4 2024 NSA EUR AMEAP 26
Slide 27: Late sales affected by lack of year-end spending and low inventory
Late sales affected by lack of year-end spending and low “inventory” Largest customers share of Q4 late sales Late sales vs. vintage library LTM 80% 700 200% 69% 180% 70% 600 +50% 160% 60% 500 140% 50% 120% 400 MUSD 40% 100% 300 80% 30% 23% 200 60% 20% 40% 100 10% 20% 0% 0 0% Q4 2023 Q4 2022 "Normal
Slide 28: More of MC sales committed up-front
More of MC sales committed up-front Multi-client revenues Pre-funding rate* Last 12 months Last 12 Months 1,000 70% 900 60% 800 700 50% 600 40% MUSD 500 30% 400 300 20% 200 10% 100 0 0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4
Slide 29: POC contract backlog & inflow
POC contract backlog & inflow Contract Inflow Timing of expected recognition 400 of Acquisition backlog 350 300 250 MUSD 200 360 355 150 280 283 275 240 100 196 184 174 141 120 117 50 88 0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Contract Backlog 16% 600 500 223
Slide 30: Financial Guidance 2024
Financial Guidance 2024 • Focus on optimizing the sales-to-investment Multi-client investments 600 120% ratio, cash flow and return on capital 500 100% • 2024 multi-client investments expected to be approximately USD 300-350 million 400 80% Early sales rate MUSD • 2024 Early sales rate expected to b
Slide 31: Q4 2023 Summary
Q4 2023 Summary Total POC revenues of USD 206 million compared to USD 227 million in Q4 2022 POC EBITDA of USD 137 million compared to USD 151 million in Q4 2022 Strong development in proprietary sales and early sales, offset by weak late sales Solid contract inflow of USD 275 million – total backlo
Slide 32: Appendix
EARNINGS RELEASE Appendix Q4 2023
Slide 33: IFRS contract backlog & inflow
IFRS contract backlog & inflow Contract Inflow Timing of expected recognition of Early Sales contract backlog 400 350 300 250 MUSD 200 360 355 150 280 283 275 240 100 196 184 174 141 120 117 50 88 0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Contract Backlog 900 21
Slide 34: License Round Activity
NORTH AMERICA License Round Canada: • Newfoundland Q4 2024 (close) • NW Orphan and Jeanne d’Arc Activity US GOM: AFRICA • Lease Sale 261 (closed Q4 ‘23) • Awards pending Angola: • 2023 round – 8 blocks • 2025 round – 10 blocks • Out of Round direct awards legally decreed L AT I N A M E R I C A Egypt