Norway's TGS Q3 revenue rises on high contract activity

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EBIT

$86 mln

Q3 EBITDA

$222 mln

Q3 Order Backlog

$679 mln


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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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