Norway's TGS Q3 revenue rises on high contract activity

TGS ASA

Today 06:12

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: ID:nGNE5kzMZH

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.)