Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — TGS — Q4 2022 Earnings Presentation
35 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Feb 9, 2023
Slide 1: Q4 2022 Results
Q4 2022 Results Kristian Johansen Sven Børre Larsen CEO CFO 9 February 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 not
Slide 3: Highlights
Highlights • Total POC revenues of USD 226.9 million compared to USD 119.5 million in Q4 2021 • Late sales of USD 136.6 million in Q4 2022 vs. USD 52.8 million in Q4 2021 • POC Early sales of USD 30.7 compared to 55.1 million in Q4 2021 • Magseis Fairfield ASA was consolidated from 11 October 2022,
Slide 4: Recent highlights
Recent highlights
Slide 5: Acquisition of Magseis Fairfield ASA
Acquisition of Magseis Fairfield ASA Status update • 75% ownership reach on 11 October 2022 - 100% ownership reached in early January 2023 • Magseis will become separate Business Unit in TGS responsible for OBN and all other acquisition related activities • Business Unit will be headed by EVP Carel
Slide 6: Recently Announced Projects
Recently Announced Projects = multi-client project = multi-client reprocessing = data acquisition contract See the energy at TGS.com -6-
Slide 7: Sleipner & Heimdal Terrace OBN Surveys, Offshore Norway
Sleipner & Heimdal Terrace OBN Surveys, Offshore Norway • Two significant multi-client OBN awards in the Norwegian North Sea for 2023 season • Expands on existing OBN footprint (Utsira and NOAKA) • Sleipner +1,201 km2 • Heimdal Terrace +500 km2 • These surveys increase the contiguous multi-client OB
Slide 8: Santos Sul 3D Offshore Brazil
Santos Sul 3D Offshore Brazil • Covers more than 15,000 km2 of both open acreage and recently awarded Permanent Offer Round blocks • Located in the southwest Santos Basin offshore Brazil • Instrumental in providing invaluable data and actionable insights into new and emerging plays outside the Pre-S
Slide 9: Foz do Amazonas Phase II Offshore Brazil
Foz do Amazonas Phase II Offshore Brazil • Survey covers 11,425 km2 • Located in the offshore Brazil equatorial margin • Broadens the region’s 3D coverage and deliver data essential for exploration efforts • In partnership with CGG • Data will be instrumental in enabling subsurface understanding in
Slide 10: Tannat 3D Reprocessing Offshore Uruguay
Tannat 3D Reprocessing Offshore Uruguay • Consists of 25,000 km2 offshore Uruguay • The data will be regionally integrated and reprocessed using advanced imaging techniques • The newly enhanced data will allow for the definition of play fairways, leads and exploration targets • Complements the 23,00
Slide 11: Bangladesh 2D Survey
Bangladesh 2D Survey • Regional scale 2D survey to enhance the geological understanding of the prospective Bengal Fan • Initial phase comprises 11,700 km of high-resolution broadband 2D seismic data • The overall program plans to encompass around 32,000 km covering most of offshore Bangladesh • Supp
Slide 12: Beyond Far East Onshore 3D Permian Basin
Beyond Far East Onshore 3D Permian Basin • Project encompasses ~85 mi2 in Mitchell County, TX in the Midland Basin • Will assist and evaluate and developing in the multiple zone potential, including Wolfcamp D • Complimented by over 250,000 wells in the Midland Basin • Will be processed utilizing mo
Slide 13: Two New OBN Awards in U.S. GOM
Two New OBN Awards in U.S. GOM 4D OBN survey award • Proprietary 4D OBN survey located in Walker Ridge • Planned to mobilize in Q3 2023 • Duration of ~100 days Sparse node survey award • Proprietary sparse node survey located in the Gulf of Mexico • Planned to mobilize in Q2 • Duration of ~100 days
Slide 14: TGS Industry-Leading ESG Performance
TGS Industry-Leading ESG Performance New Recognitions WINNER MEMBER ALLY Grit Awards Best Bloomberg 2023 Gender Places to Work Equality Index Since 2016, TGS has been committed to the UN Global Compact corporate responsibility initiative and supports these initiatives. See the energy at TGS.com - 14
Slide 15: Financials
Financials
Slide 16: POC Operating Revenues
POC Operating Revenues Early Sales Late Sales 60 160 140 50 120 40 100 MUSD MUSD 30 80 55 137 44 60 20 39 34 97 33 31 40 76 25 65 10 20 53 20 26 30 31 - - Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Proprietary Reven
Slide 17: POC Revenues by Business Unit
POC Revenues by Business Unit Multi Client Digital Energy Solutions 180 10 160 9 140 8 7 120 6 MUSD MUSD 100 5 80 164 9 4 7 7 8 60 128 7 7 112 107 110 3 6 40 5 70 2 20 47 53 1 - - Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 18: Operating Result and Cash Flow
Operating Result and Cash Flow Operating Expenses 1 POC EBITDA 60 160 140 50 120 40 100 MUSD MUSD 30 80 151 48 60 20 103 31 27 40 84 83 80 24 26 27 10 22 51 20 32 28 0 0 Q1 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Multi-clie
Slide 19: IFRS Multi-client Library Financials
IFRS Multi-client Library Financials Amortization and Impairments Net Book Value Multi-Client Library 180 1,000 160 900 140 800 120 700 600 MUSD 100 MUSD 500 80 165 161 915 144 400 805 60 705 688 89 90 300 570 576 592 40 62 62 200 20 100 0 0 Q1 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 20: IFRS Income statement
IFRS Income statement See the energy at TGS.com - 20 -
Slide 21: IFRS Balance sheet
IFRS Balance sheet See the energy at TGS.com - 21 -
Slide 22: Cash Flow Statement
Cash Flow Statement See the energy at TGS.com - 22 -
Slide 23: Dividends and Share Buybacks
Dividends and Share Buybacks Dividend per share 1 Dividend yield 2 Dividend per share1 Dividend yield 2 1.6 6.0% NOK 8.5 NOK 8.0 1.4 5.0% 1.2 NOK 8.5 USD 1.08 NOK 6.0 4.0% USD per share 1.0 NOK 5.0 USD 0.8 USD 0.75 3.0% 0.8 USD 0.6 USD 0.56 4.9% 5.2% NOK 4.0 USD 0.6 4.6% 0.6 USD 0.56 4.5% 4.3% 0.14
Slide 24: Market Outlook
Market Outlook
Slide 25: Signs of continued recovery in seismic spending
Signs of continued recovery in seismic spending Drilling activity versus seismic market • Global seismic market grew by more than 50 10 30% in 2022 • TGS late sales growth of 167% Seismic market value (USDbn) Floater market value (USDbn) 40 8 30 6 • Planned offshore drilling activity supports 20 4 c
Slide 26: Strong growth in OBN demand
Strong growth in OBN demand Estimated OBN market value • Infrastructure-led exploration (ILX) 1,200 and 4D driving strong growth in OBN market 1,000 800 Other • Magseis well positioned 35-40% Southeast Asia India market share West Africa MUSD 600 Middle East South America “We continue to drive down
Slide 27: Contract Backlog & Inflow
Contract Backlog & Inflow Contract Backlog Early Sales expected recognition schedule in IFRS 900 800 700 600 Q1 2023, 15% 457 500 486 508 446 115 MUSD 379 237 361 107 400 219 222 117 207 300 98 124 168 89 75 97 85 55 200 106 110 95 2024 +, 46% 268 281 244 100 209 189 209 225 169 151 151 179 142 Q2 2
Slide 28: OBN crew activity plan
OBN crew activity plan Q4 22 Q1 23 Q2 23 Crew Oct Nov Dec Jan Feb March Apr May Jun ZXPLR Crew 1 ZXPLR Crew 2 Z700 Crew MASS Crew RM Source Crew 1 RM Source Crew 2 RM Source Crew 3 Renewables projects US Gulf of Mexico Latin America North Sea Asia Available / maintenance See the energy at TGS.com -
Slide 29: License Round Activity
License Round Activity Europe Africa North America Norway: Angola: Canada: • 2022 APA Round – Q1 2023 (award) • 2023 round – 8 blocks • Newfoundland - Q4 2023 (close) • 2023 APA Round – Q3 2023 (close) • 2025 round – 10 blocks • Out of Round direct awards legally decreed US GOM: UK: • Lease Sale 259
Slide 30: Guidance 2023
Guidance 2023 Expected 2023 multi-client investments • Multi-client investments USD 320-350 million USD 320-350m • More than USD 200 million committed currently USD 224m • POC Early sales rate >70% • Dividends of USD 0.14 per share per quarter 2022 actual 2023 guidance Expected 2023 POC early sales
Slide 31: TGS Capital Markets Day LIVE in Oslo
TGS Capital Markets Day LIVE in Oslo 7 March 2023 | 13:00 CET Key Topics KEYNOTE • The dual challenge – Energy and Environment DR. SCOTT TINKER • Market outlook for energy data and acquisition • Financial outlook for TGS • Status Magseis integration • Strategic priorities • Meet the executives Scan
Slide 32: Summary
Summary • Significant market improvement • Best Q4 late sales since 2014 • Continuous improvement in order inflow • Total backlog of USD 451 million • Robust balance sheet • Cash balance of USD 189 million after significant M&A activity • Low interest-bearing debt • Strong working capital position f
Slide 33: Thank you
Thank you TGS?
Slide 34: Appendix
Appendix
Slide 35: IFRS Operating Revenues
IFRS Operating Revenues Early Sales Revenue Late Sales Revenue 180 160 160 140 140 120 120 100 100 MUSD MUSD 80 80 164 137 60 60 127 105 112 97 40 40 73 76 65 52 55 20 53 20 38 40 26 30 31 23 0 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2020 Q1 2021 Q2 2021 Q3 2021