Earnings g Release Q Q1 2011 Kristian K. Johansen Robert Hobbs Chief Financial Officer Chief Executive Officer
Forward-Looking o a d oo g Statements State e ts All statements in this presentation other than statements of historical fact, are forward- looking statements, which are subject to a number of risks, uncertainties, and assumptions…
Q1 2011 Financial Highlights Net revenues were 132.0 MUSD, down 11% from Q1 2010 Net late sales of 84.8 MUSD were up 16% from last year Net pre-funding of 36.7 MUSD were down 47%, funding 84% of TGS operational multi-client…
Q1 2011 Income Statement Change USD millions, except EPS Q1 2011 Q1 2010 in % Net Operating Revenues 132 148 -11% COGS - Proprietary & Other 4 1 397% MC Amortization 40% 48 67 -28% Gross Margin 80 80 0% Other Operating…
Q1 2011 Cash Flow Statement Change in USD millions Q1 2011 Q Q1 2010 Q % Payments from Sales Received 198 151 32% Operational Costs Paid (25) (21) 20% ( ) from Currencyy Exchange Gain/(Loss) g ((1)) 1 -216% Taxes Paid (33) (24)…
Balance Sheet Change in USD millions Q1 2011 Q1 2010 % Q4 2010 Assets Cash 385 282 37% 290 Investments Available for Sale 21 26 -20% 21 Derivative Financial Instruments 0.3 - 0.4 Oth Current Other C t Assets A t 214 307 -30%…
Multi-client Library 7
Accounting Principles for Multi-client Library Accounting standards recommend to match revenues and costs in time TGS capitalizes the direct costs of surveys as investments in the Balance Sheet and amortizes them over 5 years…
Investments per Vintage Net Book Value in % of original investment vs. allowed maximum % (year-end) 350 299 294 300 100 % 258 250 Millions 200 60 % 57 % 150 131 42 % 100 25 % 53 40 % 50 20 % 36 % 8% 0 0%…
Net Revenues vs. Net Book Value per Vintage 50 % 45 % 43 % 41 % 40 % 35 % 30 % 30 % Percent 25 % 25 % 20 % 16 % 16 % 15 % 12 % 10 % 10 % 5% 5% 1% 1% 0% 0% pre-2007 2007 2008 2009 2010 WIP Net revenues…
Operational Highlights Robert Hobbs Chief Executive Officer 11
Net Revenue Breakdown Q1 2011 Q1 2010 GPS GPS 12% 9% 2D 2D 26% 27% 3D 3D 62% 64% Q1 2011 Q1 2010 Proprietary Proprietary 8% 4% EP 28% EP 47% LP 49% LP 64% 12
Net Revenue Breakdown Q1 2011 Q1 2010 Other Other 20% 16% NSA NSA 32% 36% AMEAP AMEAP 31% 31% Europe Europe p 17% 17% 13
License Round Activity and TGS Positioning Western Greenland: Norway: Awards: During Q4 2010 - OC s Awards: During Q2 2011 acceptance letter Q1 2011 New APA due Q3 2011 North East Greenland: Licensing round areas identified Januaryy…
Q1 2011 Q 0 - Ope Operations at o s Bergen Surveyor 2D Seisquest 3D Geo Coral 3D 15
Status on TGS GOM WAZ Programs g Constitution Project Freedom 16,600 km2 Standard processing completed in Q4 2010 Optional Reverse Time Justice Migration g ((RTM)) completed p and available to clients in Q1 2011 Liberty 3,050…
Faroe Islands Reprocessing Data made available by Faroes Earth and Energy Directorate 13,550 km extending to the UK border Complements adjacent TGS library in the UK Applying pp y g p proprietary p y processing proven to…
Continued Growth in Atlantic Transform Margin Benin 3D Program 3D survey over blocks 5 and 6 Acquisition complete on 4,000 km2 Specialized processing in p g progress 2D data available immediately Continuation of the Atlantic…
First 3D Data Library in Indonesia Tarakan Basin 3D surveys TBN10 1,600 km2 Acquisition complete Processing in progress TBB11 1,820 km2 Acquisition in progress Extensive play fairway with recent gas discoveries g Projects…
2011 Investment Weighted to H2 2011 Capacity under contract CGGVeritas Four month commitment for high capacity 3D vessel in Europe Two 6 month extension options Three month commitment to Bergen Surveyor 2D vessel for Europe Dolphin…
Acquisition of Stingray Geophysical Limited TGS completed the acquisition of Stingray on18 April 2011 Upfront payment of 45 MUSD at closing, closing with additional payments of up to 35 MUSD based on objective milestones Stingray…
Guidance Unchanged Multi-client investments 280 330 MUSD Average pre-funding 55 65% Average multi-client amortization rate 41 47% Net revenues 600 650 MUSD Contract revenues of approximately 5% of total revenues 24
Highlights Uncertainty in the Gulf of Mexico remains Business conditions remain supportive to TGS unique business model Record high Q1 late sales Highest cash flow ever in a single quarter Countercyclical investments in high…
TGS Performs in all Cycles EBIT Margins vs. Seismic Peers 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -20 -40 -60 -80 80 -100 TGS Comp A Comp B Comp C 26
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