TGS ASA

Q2 revenue was $400 million, up 30% year over year, versus $308 million last year. EBITDA was $244 million, or a 61% margin, versus $153 million last year; EBIT was $120 million, or a 30% margin, versus a $22 million loss last year. Multi-client revenue was $250 million in total, and multi-client investments were $168 million, up from $114 million a year ago. Order inflow was $377 million and backlog ended at about $756 million. For 2026, management guided multi-client investments to about $550 million and said gross operating expenses should be around the annualized run rate of $950 million, with second-half cash flow expected to be stronger than the first half. The quarterly dividend remains $0.155 per share.

Kristian Johansen framed the quarter as evidence that TGS’s integrated offshore model is working, highlighting the 94% streamer utilization, strong multi-client demand, and high backlog. He emphasized that the company is shifting capacity between multi-client and contract work to improve utilization and returns, while also sharpening the portfolio through the Apparition acquisition and the sale of the North American well data business. His tone was upbeat and confident, with repeated references to stronger future exploration spending and a potential 2027 upcycle.

Sven Larsen walked through the financials, noting $250 million of multi-client revenue, $151 million of contract revenue, $267 million of gross operating expenses, and $244 million of EBITDA. He explained that gross operating expenses were above the original plan because of higher activity, a less favorable geographic mix, and higher fuel prices, but said the second half should revert toward the roughly $950 million annualized run rate. Cash flow was negative $56 million in the quarter, driven by negative working capital of $78 million and $148 million of multi-client investments, but he said the second half should generate much stronger cash flow and help net debt move back into the $250 million to $350 million target range.

Analysts asked about winter-season utilization, late sales, prefunding, pricing, and which geographies look most promising. Management said winter is usually softer but they are still working to secure backlog, late sales were slightly better than expected, a delayed Brazil prefunding commitment was closed in Q2, and prefunding overall remained satisfactory though not disclosed in detail. On pricing, Kristian said streamer contract pricing is still only satisfactory and that competitors are sometimes underbidding by 15% to 20%, while pointing to stronger opportunities in Brazil, Angola, Nigeria, India, the U.S. Gulf of America, and Norway.