29 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Jul 20, 2023
Slide 1: Q2 2023 Results
JULY 20, 2023 EARNINGS RELEASE Q2 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: Financial Highlights
Q2 2023 Financial Highlights Total POC revenues of USD 241 million compared to USD 135 million in Q2 2022 • Late sales of USD 63 million in Q2 2023 vs. USD 97 million in Q2 2022 • POC Early sales of USD 66 million compared to USD 33 million in Q2 2022 • Proprietary revenues of USD 113 million where
Slide 4: Operational Highlights
EARNINGS RELEASE Operational Highlights Q2 2023
Slide 5: Continued strong multi-client contract inflow
Continued strong multi-client contract inflow • Customers continue to commit exploration Multi-client contract inflow 12-months trailing spending both in mature and frontier basins 1,000 900 • Pre-funding for several large multi-client 800 projects secured in Q2 2023 700 600 MUSD • Q2 2023 multi-cli
Slide 6: Engagement – U.S. GoM
Recently announced multi-client projects Engagement 4 – U.S. GoM • Long-offset OBN survey covering 152 OCS blocks in western Green Canyon • This project represents the 6th phase of TGS/SLB OBN collaboration • Imaging benefits from the utilization of FWI – a proven technology break-through for both e
Slide 7: Malvinas 3D Ph III - Argentina
Recently announced multi-client projects Malvinas 3D Ph III - Argentina • Malvinas 3D Ph III will be 7,500 km2 of new 3D coverage in the Malvinas Basin • Project represents 3rd phase of 3D coverage in the basin and will expand TGS’ footprint to over 25,000 km2 of 3D • Acquisition expected to commenc
Slide 8: Amazonia Azul 2D-cubed - Brazil
Recently announced multi-client projects Amazonia Azul 2D-cubed - Brazil • 2D-cubed project covering 286,506 km2 offshore Equatorial Margin Brazil • First application of TGS 2D- cubed industry-validated technology in Brazil • 2D-cube technology transforms 2D data into an interpretable 3D volume, imp
Slide 9: Sarawak Phase 2 - Malaysia
Recently announced multi-client projects Sarawak Phase 2 - Malaysia • ~6,800 km2 of new multi-client 3D data being acquired in North Luconia province of Malaysia • Data acquisition commenced June 2023 • Data to be merged with ~6,700 km2 of reprocessed legacy data • JV consortium with PGS and SLB 9
Slide 10: Strong performance by Acquisition Business Unit
Strong performance by Acquisition Business Unit • ACQ BU first six months: ACQ improvement in EBIT • 9% y/y growth in gross revenues* 6 months 2022 vs 2023 25 • 23% EBITDA margin vs 16% in H1 2022* 1 • USD 20 million EBIT vs. USD 1 20 million in H1 2022* 8 15 MUSD • Integration ahead of plan - 60% o
Slide 11: Further Progress by Digital Energy Solutions
Further Progress by Digital Energy Solutions • 34% y/y revenue growth in Q2 2023 • Highlights Q2 2023 • Deployment of the first LiDAR wind measurement buoy in Utsira, Norway • 56% y/y growth in subscriptions for 4C Offshore • New version of PowerviewTM asset management tool launched by TGS | Predikt
Slide 12: Financials
EARNINGS RELEASE Financials Q2 2023
Slide 13: 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 60 40 66 97 40 76 55 65 62 20 34 33 39 31 20 53 46 20 25 30 31 0 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4
Slide 14: POC Revenues by Business Unit
POC Revenues by Business Unit Multi-client & Imaging Digital Energy Solutions 180 14 160 12 140 10 120 MUSD MUSD 100 8 80 164 6 12 128 138 60 124 9 10 112 107 110 4 8 7 7 7 7 40 6 20 47 53 2 0 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q
Slide 15: Operating Costs and POC EBITDA
Operating Costs and POC EBITDA Cost of Goods sold Personnel costs 40 70 35 60 30 50 25 MUSD MUSD 40 20 30 63 34 58 15 30 31 20 21 10 18 18 27 15 14 10 5 12 8 8 0 1 1 1 2 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022
Slide 16: Amortization, Depreciation and POC EBIT
Amortization, Depreciation and POC EBIT POC Amortization Depreciation 160 25 140 20 120 100 71 15 MUSD MUSD 80 9 2 60 10 19 27 1 33 9 36 32 17 19 9 9 22 15 13 40 5 20 43 43 43 36 39 39 37 40 40 6 5 5 5 5 5 0 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q3 2021 Q4
Slide 17: 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 Q2 23 17 Q2 23
Slide 18: IFRS - Profit & Loss
IFRS - Profit & Loss (MUSD) Q2 2023 Q2 2022 Change YTD 2023 YTD 2022 Change Early Sales 31.1 127.2 -76% 73.1 179.1 -59% Late Sales 62.5 96.8 -35% 108.0 173.0 -38% Proprietary Sales 112.7 6.1 1745% 198.4 10.2 1854% Total revenues 206.3 230.1 -10% 379.5 362.3 5% Cost of goods sold 63.5 1.5 4089% 121.3
Slide 19: IFRS - Balance Sheet
IFRS - Balance Sheet Change from (MUSD) Q2 2023 Q1 2023 Q1 2023 Q4 2022 Goodwill 384.6 384.6 0% 384.6 Multi-client library 687.3 656.3 5% 575.3 Deferred tax asset 92.7 86.0 8% 82.2 Other non-current assets 296.2 287.4 3% 282.9 Total non-current assets 1,460.9 1,414.4 3% 1,325.1 Cash and cash equival
Slide 20: IFRS - Cash Flow
IFRS - Cash Flow (MUSD) Q2 2023 Q2 2022 Change YTD 2023 YTD 2022 Change Cash flow from operating activities: Profit before taxes 22.3 33.5 -33% 9.3 61.8 -85% Depreciation/amortization/impairment 74.1 165.7 -55% 144.4 233.3 -38% Changes in accounts receivable and accrued revenues -82.4 -29.4 181% -6.
Slide 21: Dividends
Dividends Dividend per share 1 Dividend yield 2 1.6 6.0% 1.4 NOK 8.5 NOK 8.0 5.0% 1.2 NOK 8.5 4.0% USD 1.08 1.0 USD per share NOK 6.0 NOK 5.0 0.8 3.0% USD 0.8 USD 0.75 4.9% 5.2% 0.6 NOK 4.0 4.5% 4.6% 4.3% USD 0.6 USD 0.6 2.0% 4.0% USD 0.56 USD 0.56 4.0% 3.9% 3.7% 3.7% 3.5% 3.6% 0.4 0.14 2.8% 2.6% 1.
Slide 22: Outlook
EARNINGS RELEASE Outlook Q2 2023
Slide 23: Strong growth in exploration spending
Strong growth in exploration spending Revenues offshore drillers* 14,000 • Several indications that E&P companies 12,000 +22% continues to raise exploration spending 10,000 +32% MUSD 8,000 +19% 6,000 • Spending shifting towards non-discretionary 4,000 spending categories 2,000 0 • Drilling 2021 Sour
Slide 24: Acquisition Activity Plan
Acquisition Activity Plan ZXPLR 1 ZXPLR 2 OBN Crews Z700 Mass RM Source 1 RM and Source RM Source 2 RM Source 3 Renewables crew Q1 2023 Q2 2023 Q3 2023 Q4 2023 NSA EUR AMEAP
Slide 25: Multi-client Activity Plan
Multi-client Activity Plan Capreolus Ph II Sarawak Ph II* 3D Streamer Foz de Ama. Ph II* Santos Sul* Suriname Ph III* Engagement Ph IV* Engagement Ph III* 3D OBN Amendment Ph II* Sleipner* Heimdal Terrace* Swanson 3D Pontiac 3D Other Beyod Far East 3D Bangladesh 2D* Q1 2023 Q2 2023 Q3 2023 Q4 2023 *
Slide 26: Contract Backlog & Inflow
Contract Backlog & Inflow Contract Inflow 400 350 Timing of expected recognition of Early Sales 300 backlog 250 200 360 13% 150 283 280 240 100 184 198 2% 174 131 141 120 117 50 88 61 0 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Contract Backlog 24% 61% 900 800 700
Slide 27: License Round Activity
License Round Activity AFRICA Angola: • 2023 round – 8 blocks NORTH AMERICA EUROPE • 2025 round – 10 blocks • Out of Round direct awards legally decreed Canada: Norway: • Newfoundland – Q4 2023 (close) • 2023 APA Round – Aug 2023 (close) Egypt: • Nova Scotia – Q3 2023 (close) • Onshore & Offshore Ro
Slide 28: Summary
Q2 2023 Summary Total POC revenues of USD 241 million compared to USD 135 million in Q2 2022 POC EBITDA of USD 132 million compared to USD 103 million in Q2 2022 Strong performance by the Acquisition business unit on revenues, profitability and synergy realization Continued growth in exploration spe
Slide 29: Thank you
Thank you TGS.com