TGS slumps after prelim revenue miss, drags down PGS
09/01/2024 09:24
** Shares in Norwegian oil services firms TGS TGS.OL and
PGS PGS.OL , which are set to merge, fall around 14-15% after
TGS reported preliminary Q4 revenue below expectations
** TGS expects Q4 revenues at about $189 million, while PGS
forecasts revenues and other income in the quarter of about
$216.7 million
** "Late sales was surprisingly weak in Q4 for TGS," says
Carnegie analyst Erik Aspen Fossa in a note, adding it stands in
contrast with PGS, which beat expectations
** Fossa says increased uncertainty of future sales and
value of its multi-client library hit TGS shares, while PGS
falls on read-across from the other company
** However, Fossa says PGS revenue was still on the soft
side when adjusting for transfer fees
** The disappointing late sales for TGS could be due to
postponed key licensing rounds, inflation eating up exploration
budgets or key clients being busy with M&A activity, the analyst
says
** TGS's stock is on track for worst day since March 2020
(Reporting by Agata Rybska)
((gdansk.newsroom@thomsonreuters.com;))