Slide 1: Q4 2024 Results
20 FEBRUARY 2025 Q4 2024 Results Oslo, Norway KRISTIAN JOHANSEN, CEO SVEN BØRRE LARSEN, CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements in this presentation other than statements of operational challenges, and reliance on a cyclical industry and historical fact are forward-looking statements, which are subject principal customers. Actual results may differ materially from to a number of risk
Slide 3: TGS Q4 Highlights
SUMMARY TGS Q4 Highlights¹ Total revenues² of USD 492 million compared to USD 414 million³ in Q4 2023 EBITDA² of USD 267 million compared to USD 243 million³ in Q4 2023 EBIT² of USD 92 million compared to USD 77 million³ in Q4 2023 Successfully completed balance sheet refinancing at attractive terms
Slide 4: A Transformational Year for TGS
2024 A Transformational Year for TGS UNIQUE BUSINESS MODEL • The only integrated energy data company • Leading position in all SOLID BUSINESS segments PERFORMANCE • Y-o-Y EBIT¹ increased 23% in 2024 • Multi-client sales-to- INCREASING COMPLETED investment of 2.2x SHAREHOLDER PGS ACQUISITION • Contra
Slide 5: Business Update
Business Update
Slide 6: Data acquisition activity in Q4 2024
OBN operations NES operations MC OBN/onshore projects MC vessel operations Contract vessel operations Data acquisition activity in Q4 2024
Slide 7: Multi-Client Update
Multi-Client Update • Solid multi-client performance in Q4 2024 driven by • Seasonal Q4 sales uptick from the multi-client library • Strong pre-commitment for ongoing surveys • Multi-client 2024 investments ended at USD 427 million (pro-forma) Malvinas Ph3 offshore Argentina • Phase 3 covers ~7,500
Slide 8: Contract Update
Contract Update Q4 2024 Contract revenues driven by • High OBN activity • Overweight of active streamer capacity allocated to contract work at attractive rates OBN contract award in Europe • Node-on-a-rope crew scheduled for startup in April 2025 • Acquisition duration of ~35 days 3D streamer contra
Slide 9: New Energy Solutions Update
New Energy Solutions Update • Low data acquisition activity explains lower revenues CCS: • Awarded acquisition project for summer season 2025 • Assessment of CO2 storage capabilities of Appalachia basin • Utilizing data from 3,400 wells and 29 stratigraphic surfaces • Covering 85 million acreage acr
Slide 10: Imaging & Technology Update
Imaging & Technology Update • Imaging developed favorably in Q4 and for the full year 2024 • Increasing revenues and order inflow • Awarded ExxonMobil’s 2024 Supplier Innovation Award • Gemini Enhanced Frequency Source Technology • Launched advanced imaging centers for Petrobras • Dedicated to OBN a
Slide 11: Merger Synergies Ahead of Plan
Merger Synergies Ahead of Plan Merger synergies • Initial 2024 target of USD ~60 million 120 • Realized run rate by year-end 2024 of USD ~100 million • Completed reorganization in Q3 • Completed refinancing in Q4 USD million 80 • On track to deliver total synergies of USD 40 110-130 million by year-
Slide 12: Financials
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Slide 13: Group Financials
Group Financials Net revenue Net operating expenses¹ 600 250 500 221 225 200 501 492 206 400 193 414 433 150 171 381 MUSD MUSD 300 100 200 50 100 0 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Group EBIT and margin Depreciation & Amortization 120 25% 200 100 21% 180 20% 123 19% 19%
Slide 14: Profit & Loss
Profit & Loss Produced Q4 2024 Q4 2023 Q4 2023 YTD 2024 YTD 2024 YTD 2023 YTD 2023 (MUSD) As reported Pro forma As reported Pro-forma As reported Pro-forma Multi-client revneues 261.4 117.9 230.1 805.8 965.4 549.4 917.8 Contract revenues 230.9 88.1 183.9 629.4 841.2 419.0 753.4 Total revenues 492.3
Slide 15: Cash Flow
Cash Flow¹ Produced (MUSD) Q4 2024 Q4 2023 YTD 2024 YTD 2023 Produced EBITDA 267.1 137.3 811.2 558.0 Paid tax -16.1 -9.2 -32.6 -32.2 Change in balance sheet items -69.7 19.5 -149.9 58.8 Cash flow from operations 181.3 147.6 628.7 584.7 Capitalized multi-client investments -100.4 -70.6 -348.6 -402.4
Slide 16: Balance Sheet
Balance Sheet¹ IFRS Change from (MUSD) 31-Dec-24 30-Sep-24 30-Sep-24 31-Dec-23 Goodwill 560.1 560.1 0% 384.6 Multi-client library 1,196.8 1,226.4 -2% 753.1 Deferred tax asset 249.7 245.6 2% 67.9 Right-of-use assets 150.2 130.1 15% 78.2 Other non-current assets 1,052.0 1,063.7 -1% 229.7 Restricted ca
Slide 17: Refinancing Successfully Completed
Refinancing Successfully Completed • Gross debt reduced by USD ~170 million compared 800 to legacy PGS debt structure Super Senior Loan USD 50 million Term Loan B USD 70 million • Annual interest expenses reduced by USD ~35 Term Loan USD 75 million million 600 RCF¹ Term Loan A² USD 45 million Export
Slide 18: Dividends
Dividends Dividend Per Share 1 Dividend Yield 2 1.6 7.0% 1.4 6.0% 1.2 5.0% USD per share 1 4.0% 0.8 NOK NOK USD 6.2% 8.0 8.5 3.0% NOK 1.08 USD 0.6 5.2% 5.3% NOK 8.5 USD 0.75 4.9% 0.14 4.5% 4.6% 6.0 0.8 4.3% USD USD 2.0% 4.0% 3.9% 4.0% 3.8% 0.4 USD USD USD 3.5% 3.6% 3.7% NOK NOK 0.6 0.6 0.56 0.56 0.5
Slide 19: Outlook
Outlook
Slide 20: Flattish 2025 E&P Investments Expected
Flattish 2025 E&P Investments Expected 12% 11% 10% • Expect flattish 2025 E&P spending vs. 2024 8% • TGS E&P spending tracker³ of 1.5% increase in 2025 6% • Spending growth higher Offshore than 4% overall E&P spending 3% 3% 2% 0.1% 0% 2024 OFFSHORE 2024 E&P spend vs 2025 OFFSHORE 2025 E&P spend vs.
Slide 21: 3D Streamer Contract Tenders
3D Streamer Contract Tenders Active streamer tenders¹ 800 • Active streamer tenders at decent levels 600 • Decline in Q4 due to several contract streamer awards, TGS announced: • 4D streamer contract in Southern Atlantic MUSD 400 • First 2025 summer season contract • Major 3D streamer contract by ON
Slide 22: Growth in OBN Market Expected to Continue in 2025
Growth in OBN Market Expected to Continue in 2025 Revenues OBN mid & deepwater market • Mid to deepwater OBN market has grown 1400 approximately 20% annually over the last four years • For 2025 the industry has secured ~70% of 2024 revenues • Mid to deepwater market likely to continue to grow in USD
Slide 23: TGS 2025 Market Outlook
TGS 2025 Market Outlook Providing the insights and solutions needed for today and anticipating the challenges of tomorrow STREAMER OBN NEW ENERGY MULTI-CLIENT CONTRACT CONTRACT IMAGING SOLUTIONS Higher multi-client Benefits from Expect 2025 Expect strong Expect growth in investment in improved vesse
Slide 24: 2025 Guidance
2025 Guidance MULTI-CLIENT INVESTMENT CAPITAL EXPENDITURES GROSS OPERATING COST UTILIZATION • Investment of USD 425-475 • Approximately USD 150 million • Target approximately USD • Improving utilization of 3D million 1,050 million* or below streamer fleet • Excluding approximately 10 • Approximately
Slide 25: Order Backlog & Inflow
Order Backlog & Inflow Order Inflow Expected timing of contract backlog revenue recognition 600 500 400 MUSD 300 489 200 423 360 355 368 280 283 275 240 100 196 174 140 117 0 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Total Backlog 800 700 Q1 2025 Q2 2025 H2 2025 2
Slide 26: Summary
Q4 2024 Summary Solid Q4 2024 results 2024 a transformational year for TGS Successfully refinanced all debt facilities at attractive terms Synergies ahead of target Increasing dividend by 11% Expect to improve streamer utilization in 2025
Slide 27: Thank you
Thank you Questions? Energy Starts With Us
Slide 28: Appendix
Appendix
Slide 29: IFRS Backlog & Inflow
IFRS Backlog & Inflow Order Inflow Timing of expected recognition of IFRS 600 Early Sales contract backlog 500 400 MUSD 300 489 200 423 360 355 368 280 283 275 240 100 196 174 140 117 0 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Total Backlog 1400 1200 Q1 2025 Q2 2
Slide 30: IFRS – Profit & Loss
IFRS – Profit & Loss¹ (MUSD) Q4 2024 Q4 2023 Change YTD 2024 YTD 2023 Change Total revenues² 490.7 189.4 159% 1,318.2 794.3 66% Cost of sales 138.3 24.6 462% 322.5 217.4 48% Personnel cost 57.0 31.6 80% 208.9 131.0 59% Other operational costs 29.9 12.4 141% 92.6 62.0 49% EBITDA 265.4 120.7 120% 694.
Slide 31: IFRS – Cash Flow
IFRS – Cash Flow (MUSD) Q4 2024 Q4 2023 Change YTD 2024 YTD 2023 Change Operating activities: Profit before taxes 67.4 15.6 333% 147.5 51.9 184% Depreciation/amortization/impairment 175.0 109.8 59% 498.6 330.6 51% Changes in accounts receivable and accrued revenues -83.6 99.5 -184% -115.3 83.4 -238%
Slide 32: Segment Financials
Segment Financials Q4 2024 Q4 2023 Segment financials are based on revenues measured by applying the percentage-of-completion method to multi-client revenues and accelerated amortization. 32
Slide 33: Multi-client
Multi-client Revenue EBITDA 300 300 250 277 250 259 259 230 231 242 200 200 213 218 191 MUSD MUSD 150 150 177 100 100 50 50 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Multi-client investments Sales / Investment LTM 140 2.5x 120 129 2.0x 100 106 106 100 80 92 1.5x MUSD MUSD 60 2.
Slide 34: Contract Utilization
Contract Revenue EBITDA 350 60% 90 300 80 50% 50% 97 47% 70 77 250 42% 54 40% 67 OBN share 38% 60 200 56 59 MUSD 54 31% 209 30% 59 58 50 MUSD 194 150 172 162 40 48 151 20% 100 30 50 10% 20 0 0% 10 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 External revenue Internal revenue OBN share 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4
Slide 35: Imaging and NES
Imaging and NES IMG Revenue NES revenue 35 25 30 24 15 20 25 20 19 16 18 15 20 13 15 15 MUSD MUSD 15 15 10 10 9 10 10 10 5 9 5 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 0 External revenue Internal revenue Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 IMG EBITDA and EBITDA and margin NES EBITDA and margin 7.0 25% 9 40% 6.0 8
Slide 36: License Round Activity
NORTH AMERICA License Round Activity Canada: • Labrador Q4 2025 (close) US GOA: • Updated 5-year Plan Lease Sales AFRICA commence in H2 2025 AGC: • Open Door Angola: • 2025 round – 10 blocks L AT I N A M E R I C A • Out of Round direct awards legally decreed Brazil: Egypt: • Permanent Offer 5 – 2024