30 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Financial Results
Q3 2021 Financial Results Kristian Johansen Sven Børre Larsen CEO CFO 28 October 2021
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 • Q3 2021 net revenues of USD 61 million (segment) • Late sales USD 33 million • Pre-funding USD 22 million • Strong financial position – net cash of USD 198 million • Quarterly dividend of USD 0.14 per share (USD 16 million) • Buy-backs of USD 7 million • Continued challenging market con
Slide 4: TGS Investment Case
TGS Investment Case Dividend Business model Energy data ESG Recovery • Dividend yield of • Cash outflow easily • Leading data • Ranked 1 on ESG • Exploration at 5.7% (6.9% incl. adjusted to market company for O&G risk in Energy record low levels - buy-backs)1 • FCF of USD 135m • Transitioning to Ser
Slide 5: Operational Highlights
Operational Highlights
Slide 6: Investment Activity – Latin America
Investment Activity – Latin America • Agreement with Staatsolie, in a consortium with CGG and BPG • Consortium able to acquire, promote and license new multi-client 3D programs and legacy data reprocessing offshore Suriname • Suriname’s offshore acreage includes 3 blocks recently awarded and current
Slide 7: Investment Activity – Europe
Investment Activity – Europe • The NOAKA OBN is part of TGS’ strategy to provide next generation seismic data in ILX area of the NCS • First season of NOAKA OBN completed in October 2021 • TGS successfully acquired approximately 300 sq km or 2/3 of the full program • Data is in processing and will b
Slide 8: Investment activity – Asia Pacific
Investment activity – Asia Pacific • Sarawak Phase 1 3D commenced late October 2021 and will cover an area of up to 8,609 sq km • First phase of a multi-year contract awarded by Petronas MPM in 2020 to the consortium of TGS, Schlumberger and PGS • Phase 1 acquisition expected to complete in Q1 2022
Slide 9: Improving Outlook in Gulf of Mexico
Improving Outlook in Gulf of Mexico • Low break-even cost and low GHG emissions from production position GoM well in competition with other basins • Most IOCs have GoM on the strategic priority list • NOCs entering the basin • Small independents preparing • License rounds to be re-started • Schedule
Slide 10: Progressing on New Energy Solutions Strategy
Progressing on New Energy Solutions Strategy • Magseis Fairfield XHR Seismic test – subsurface imaging for wind + CCS • Wind Modeling Data • CCS Atlas development • 4C Offshore developing well – 44% growth in order inflow YTD • Further M&A opportunities being evaluated • Expected pro-forma revenues
Slide 11: Introducing Versal: A Unified Seismic Data Ecosystem
Introducing Versal: A Unified Seismic Data Ecosystem • A landmark collaboration between TGS, CGG and PGS providing access to over 70% of the seismic multi-client market • Versal connects multiple multi-client libraries for a unified data experience • Versal allows customers to access their data, ent
Slide 12: TGS’ Industry-Leading ESG Performance
TGS’ Industry-Leading ESG Performance NEW Sustainalytics State Street Since 2016, TGS has been committed to the UN Global Compact corporate ESG Risk Rating responsibility initiative and its principles Global Advisors #1 in our industry, in the areas of human rights, labour, Top Rated as a “Leader” e
Slide 13: Financials
Financials
Slide 14: Net Revenues
Net Revenues Segment reporting Pre-funding revenues Late sales 90 250 80 70 200 60 150 MUSD 50 MUSD 40 83 100 213 201 30 61 20 38 50 103 10 26 25 22 63 61 17 13 14 55 45 36 33 0 - Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Slide 15: Operating Expenses, EBIT, MC Investments
Operating Expenses, EBIT, MC Investments Segment reporting Operating Cost 1) Amortization and Impairments - Multi-Client Library 180 40 160 35 140 30 120 25 100 20 168 36 80 142 MUSD MUSD 15 60 131 27 26 120 10 22 21 23 18 40 86 15 67 5 20 51 51 0 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2
Slide 16: Income Statement
Income Statement Segment reporting See the energy at TGS.com - 16 -
Slide 17: Balance Sheet
Balance Sheet Segment reporting Balance sheet Q3 2021 Q3 2020 Change Goodwill 304.0 288.4 5% Multi-client library 584.5 763.2 -23% Deferred tax asset 57.8 44.9 29% Other non-current assets 102.5 108.9 -6% Total non-current assets 1,048.7 1,205.4 -13% Cash and cash equivalents 198.1 179.8 10% Other c
Slide 18: Cash Flow Statement
Cash Flow Statement (MUSD) Q3 2021 Q3 2020 Change Received payments from customers 77.6 109.4 -29% Payments for salaries, pensions, social security tax -11.9 -16.3 -27% Payments of other operational costs -12.2 -18.7 -35% Paid taxes -5.1 -12.5 -59% Net cash flow from operating activities 48.3 62.0 -
Slide 19: Dividends and Share Buybacks
Dividends and Share Buybacks Dividend per share1 Dividend yield 1.6 16% NOK 8.5 NOK 8.0 1.4 14% NOK 8.5 1.2 USD 1.08 12% NOK 6.0 1.0 NOK 5.0 USD per share 10% USD 0.8 USD 0.75 0.8 USD 0.6 8% Current yield NOK 4.0 USD 0.6 5.7% USD 0.56 0.6 6% 0.4 4% Long-term average 3.9% 0.2 2% 0.0 0% 2010 2011 2012
Slide 20: Market Outlook
Market Outlook
Slide 21: Current Exploration Activity Level Not Sustainable
Current Exploration Activity Level Not Sustainable Conventional oil & gas discoveries vs. multi-client spending • Current exploration activity level delivering 35 4.5 <20% reserve replacement ratio 4.0 30 3.5 25 • Pricing for exploration related services (incl. 3.0 seismic) at unsustainably low pric
Slide 22: Value Proposition of Exploration Approaching All-Time-High
Value Proposition of Exploration Approaching All-Time-High Early signs of improvement • E&P spending yet to recover from pandemic related Oil price vs exploration costs1 cuts conducted in 2020 160 140 • Value proposition of exploration at attractive levels 120 • High oil price • Low cost of explorat
Slide 23: Improving License Round Activity
Improving License Round Activity Europe Norway: • 2021 APA round – Q1 2022 (awards) North America • 2022 APA round – Q2 2022 (open) US GOM: • Lease Sale 257 – 17 Nov 21 (close) • Lease Sale 258 – H1 2022 (close) Canada: Africa • Labrador Call for Bids – Dec 21 (close) • Flemish Pass/Grand Banks/Jean
Slide 24: Summary
Summary • Q3 2021 net revenues of USD 61 million (segment) • Late sales USD 33 million • Pre-funding USD 22 million • Strong financial position – net cash of USD 198 million • Quarterly dividend of USD 0.14 per share (USD 16 million) • Buy-backs of USD 7 million • Continued challenging market condit
Slide 25: Appendix
Appendix
Slide 26: Segment and IFRS reporting
Segment and IFRS reporting • The accounting standard IFRS 15 regarding revenue recognition implemented from 1 January 2018 • Implications for TGS • Recognition of revenues related to multi-client projects postponed until projects are delivered to customers • No amortization until completion of the p
Slide 27: Income Statement
Income Statement IFRS (MUSD) Q3 2021 Q3 2020 Change Net operating revenues 199.8 58.2 243% Cost of goods sold 0.8 1.0 -17% Personnel cost 14.8 12.2 21% Other operational costs 16.8 5.1 232% EBITDA 84% 167.3 39.9 319% Amortization of multi-client library 127.0 125.5 1% Depreciation 4.7 4.1 15% Operat
Slide 28: Balance Sheet
Balance Sheet IFRS Balance sheet Q3 2021 Q3 2020 Change Goodwill 304.0 288.4 5% Multi-client library 800.5 1,062.0 -25% Deferred tax asset 90.9 106.3 -15% Other non-current assets 102.5 108.9 -6% Total non-current assets 1,297.8 1,565.6 -17% Cash and cash equivalents 198.1 179.8 10% Other current as
Slide 29: Reconciliation Between Segment and IFRS
Reconciliation Between Segment and IFRS Q3 2021 Performance In progress Q3 2021 (All amounts in USD 1,000s) IFRS obligations met in projects Segment Revenues 199,778 -163,304 24,463 60,937 Amortization and impairmentof MCL 127,032 -86,984 11,442 51,490 Income before tax 34,617 -250,288 35,905 -28,68
Slide 30: Multi-Client Library
Multi-Client Library Segment reporting Operational investments and prefunding ratio Net Book Value - Multi-Client Library 160 80% 1,000 140 69% 70% 120 60% 60% 800 100 48% 49% 43% 50% 47% 600 80 40% 40% 138 MUSD 32% 831 842 MUSD 60 30% 400 789 763 40 20% 624 594 580 584 77 20 54 54 56 10% 200 28 37