TGS (TGS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $492 million, up from $414 million in Q4 2023, with EBITDA at $267 million and EBIT at $92 million, reflecting strong operational performance and successful PGS integration.

• Achieved $100 million in merger synergies by year-end 2024, surpassing the initial $60 million target, with full refinancing of legacy PGS debt at attractive terms.

• Board approved an 11% dividend increase to $0.155 per share for Q1 2025, reflecting confidence in future cash flow and synergy capture.

• Net income for Q4 2024 was $38 million, reversing a loss in Q4 2023; EPS was $0.19.

• Strong contract and multi-client sales, high OBN activity, and robust order inflow contributed to record performance.

Financial highlights

• Q4 2024 revenues were $492 million, up 19% year-over-year; EBITDA was $267 million, EBIT $92 million, and EBIT margin 19%.

• Multi-Client sales in Q4 were $259 million, with a sales-to-investment ratio of 2.6 for the quarter and 2.2 for the year.

• Contract revenues in Q4 2024 totaled $263 million, with OBN contract revenues at $132 million and streamer contract revenues at $131 million.

• Net operating expenses for Q4 were $225 million; depreciation and amortization totaled $113 million.

• Cash flow from operations in Q4 2024 was $181 million, with cash and cash equivalents at period end of $123 million.

• Net interest-bearing debt at year-end stood at $500 million, up due to working capital and refinancing outflows.

Outlook and guidance

• 2025 Multi-Client investments guided at $425–$475 million, with 70% expected to use internal capacity.

• CapEx for 2025 expected at $150 million, plus $10 million for integration.

• Gross operating costs targeted at slightly above $1 billion, with improving 3D streamer utilization and flattish OBN activity.

• Imaging and New Energy Solutions expected to see double-digit growth in 2025.

• Order backlog stable at $750 million, with strong inflow in Q4.