Norway's TGS Q3 revenue rises on high contract activity

Overview

• Norway energy data provider's Q3 revenue rose on high contract activity

• Margins declined due to higher costs and low contract pricing

• Order backlog up 52% yr/yr to $679 mln

Outlook

• TGS expects multi-client investments in 2026 to be about $510 mln, down from $550 mln guidance

• Company says streamer fleet is fully booked for Q4, with improved visibility over last year

• TGS expects contract pricing to improve from 2027 as pipeline of opportunities strengthens

Result Drivers

• CONTRACT ACTIVITY - Co said strong contract activity across 3D streamer vessel fleet and Ocean Bottom Node operations drove Q3 revenue

• OPERATIONAL CHALLENGES - Co said higher costs from operational challenges negatively impacted margins

• ORDER INFLOW - Co said robust order inflow supported by new contract awards and multi-client projects increased backlog

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for TGS ASA is NOK147.50, about 5.1% above its October 21 closing price of NOK140.30

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)