Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — TGS — Q2 2021 Earnings Presentation
28 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Jul 22, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 Financial Results Kristian Johansen Fredrik Amundsen CEO CFO 22 July 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: Financial Highlights Q2
Financial Highlights Q2 • Q2 2021 net revenues of USD 53.6 million (segment) • Late sales USD 35.9 million • Pre-funding USD 14.0 million • Cost discipline and lower capex result in free cash flow* of USD 18.4 million • Two M&A transactions carried out in Q2 • Cash balance of USD 223 million plus un
Slide 4: Q2 2021 Operational Highlights
Q2 2021 Operational Highlights • Oil and Gas data and insights • Offshore 3D seismic surveys commenced in East Coast Canada (Cape Anguille 3D, Lewis Hills 3D) and Brazil (Santos 3D Ph 4) • Onshore 3D surveys commenced in British Columbia, Canada (Hipp Creek 3D) and Powder River Basin, Wyoming, USA (
Slide 5: Progressing on New Energy Solutions Strategy
Progressing on New Energy Solutions Strategy • Acquisition of 4C Offshore completed May 2021 • Establishing TGS as leading provider of high-quality market intelligence data for the offshore wind industry • Further M&A opportunities being evaluated • Progressing well on organic initiatives • Working
Slide 6: Benefitting From a Flexible Business Model
Benefitting From a Flexible Business Model ROACE FCF conversion rate Sales-to-Invest 60% 80% 3.0 50% 70% 2.5 40% 60% 2.0 30% 50% 20% 40% 1.5 10% 30% 1.0 0% 20% 0.5 -10% 10% -20% 0% 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2011 20
Slide 7: Financials
Financials
Slide 8: Segment and IFRS Reporting
Segment and IFRS Reporting • Q2 presentation remains focused on Segment Reporting • Gradually shifting to IFRS going forward • IFRS will be accompanied by Alternative Performance Measures • Cash Flow • Order Generation and Backlog • Operational Progress • Return on Investments See the energy at TGS.
Slide 9: 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 61 167 20 43 38 50 103 10 26 25 17 13 14 63 55 61 45 36 0 - Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 10: Operating Expenses, EBIT, MC Investments
Operating Expenses, EBIT, MC Investments Segment reporting Operating Cost 1) Amortization and Impairments - Multi-Client Library 50 180 45 160 40 140 35 120 30 100 25 47 80 168 142 MUSD 20 MUSD 36 60 131 120 131 15 32 27 40 86 10 18 22 21 67 15 20 51 5 0 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 11: Income Statement
Income Statement Segment reporting (MUSD) Q2 2021 Q2 2020 Change Net operating revenues 53.6 95.8 -44% Cost of goods sold 1.0 1.1 -13% Personnel cost 11.8 20.3 -42% Other operational costs 8.7 18.1 -52% EBITDA 60% 32.2 56.3 -43% Amortization of multi-client library 51.4 130.7 -61% Depreciation 5.3 9
Slide 12: Balance Sheet
Balance Sheet Segment reporting Balance sheet Q2 2021 Q2 2020 Change Goodwill 303.8 284.8 7% Multi-client library 579.8 788.5 -26% Deferred tax asset 58.7 22.9 157% Other non-current assets 107.3 114.8 -6% Total non-current assets 1,049.6 1,210.9 -13% Cash and cash equivalents 223.4 198.5 13% Other
Slide 13: Cash Flow Statement
Cash Flow Statement (MUSD) Q2 2021 Q2 2020 Change Received payments 73.6 141.0 -48% Payments for operational expenses -25.2 -67.6 -63% Paid taxes -5.1 -8.4 -40% Net cash flow from operating activities 43.3 65.0 -33% Investment in tangible fixed assets 0.0 -23.3 -100% Investments in multi-client libr
Slide 14: Dividends and Share Buyback
Dividends and Share Buyback • The Board has resolved to maintain the dividend to USD 0.14 per share for Q3 2021 • Ex date 29 July 2021 – payment date 12 August 2021 • In addition, the Company has repurchased 237,675 shares for USD 3.4 million under the authorization of a USD 20 million share buyback
Slide 15: Market Outlook
Market Outlook
Slide 16: Oil market recovering to pre-COVID condition
Oil market recovering to pre-COVID condition World liquid fuels production and consumption (mbbl/day) World liquid fules stock build/(draw) (mbbl/day) 110 10 8 105 6 100 4 95 2 90 0 85 -2 80 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 17: Continued weak seismic market despite strong oil price
Continued weak seismic market despite strong oil price 3,500 80 • Strong budget discipline among E&P companies – continues to use incremental cash flow for 3,000 70 dividends, share buybacks and deleveraging 60 2,500 Multi-client spending (MUSD) • Unusual large parts of E&P budgets committed on lega
Slide 18: Attractive growth outlook for New Energy Solutions
Attractive growth outlook for New Energy Solutions • Strong growth expected for all energy transition Renewables Share of Primary Energy consumption related investments 60% 50% • Increasing competition for attractive acreage makes data and insights that can improve the 40% quality of critical decisi
Slide 19: Strategic Priorities
Strategic Priorities Cash is king - targeting industry leading shareholder distribution Risk mitigation from close client interaction and risk sharing Extensive use of partnerships and pursuing consolidation opportunities Capitalize on new growth opportunities related to data & insight See the energ
Slide 20: Backlog
Backlog Segment reporting 1. Sales committed by customers but not yet recognized in the Segment Reporting accounts See the energy at TGS.com - 20 -
Slide 21: Summary
Summary • TGS continues to generate positive free cash flow despite challenging market • USD 91 million positive free cash flow* in H1 • Dividend payment of USD 0.14 per share and continuation of Buyback program • Weak market conditions expected to continue for 2021 despite positive oil price moment
Slide 22: Thank You
Thank You
Slide 23: Appendix
Appendix
Slide 24: License round activity
License round activity Europe Norway: • 2021 APA round – 8 Sep 2021 (close) North America Canada: • Labrador South Call for Bids – Nov 21 (close) • Eastern Newfoundland Call for bids - Nov 22 (close) Africa • South Eastern Newfoundland Call for bids - Nov 22 (close) Angola: Asia-Pacific • 2021 round
Slide 25: Income Statement
Income Statement IFRS (MUSD) Q2 2021 Q2 2020 Change Net operating revenues 71.9 66.2 9% Cost of goods sold 1.0 1.1 -13% Personnel cost 11.8 20.3 -42% Other operational costs 8.7 18.1 -52% EBITDA 70% 50.5 26.6 90% Amortization of multi-client library 59.9 114.4 -48% Depreciation 5.3 9.1 -42% Operatin
Slide 26: Balance Sheet
Balance Sheet IFRS Balance sheet Q2 2021 Q2 2020 Change Goodwill 303.8 288.4 5% Multi-client library 871.4 1,126.7 -23% Deferred tax asset 80.7 69.0 17% Other non-current assets 107.3 114.8 -6% Total non-current assets 1,363.3 1,598.9 -15% Cash and cash equivalents 223.4 198.5 13% Other current asse
Slide 27: Reconciliation Between Segment and IFRS
Reconciliation Between Segment and IFRS See the energy at TGS.com - 27 -
Slide 28: Multi-Client Library
Multi-Client Library Segment reporting 1. Operational multi-client seismic investments See the energy at TGS.com - 28 -