Based on a preliminary review of sales and investments, TGS provides the following update on Q4 2015:

The weak market conditions are expected to continue in 2016. Consequently, TGS is planning for a lower activity level, which results in the following guidance for 2016:

TGS expects multi-client investments of approximately 220 MUSD
Multi-client investments are expected to be prefunded 45 to 50%

As announced on 4 December 2015, the accounting practice with respect to amortization of the multi-client library will change with effect from 1 January 2016. In accordance with the new policy TGS estimates multi-client amortization of close to 290 MUSD in 2016. An expected impact of the new accounting practice will be more predictable and less volatile quarterly normal amortization of the data library.

Tags: TGS-NOPEC Geophysical Company