TGS-Nopec buoyant despite 143% loss

Published Oct 30, 2008
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TGS-NOPEC Announces NSR 2D in North Sea-Spotlight

Norway-based survey outfit TGS-Nopec has incurred an $11.5 million net third-quarter loss, and the company still blamed a botched merger with rival Wavefield Inseis for the weaker numbers, down 143 percent year-on-year.

With arbitration rulings looming, TGS said it was “highly impacted by the unrealized, non-tax deductible loss on” Wavefield shares held, plus merger expenses.

“Without these non-operational items, net income was $51.9 million, an increase of 93 percent compared to Q3 2007,” the company said.

The market responded well to the company’s explanations, and on Thursday the stock was up in early trading by nearly eight percent.

Meanwhile, the company is expecting less on at least two fronts: less, or some $550 million, is now sought in damages from Wavefield, and “turmoil in the financial markets is likely to have an impact on future growth.”

“Based on recent offers from suppliers, rates for contracting seismic vessels have clearly peaked and availability seems to be improving,” a statement warned.

But TGS cheered investors by saying revenues were “well ahead” thus far at $70 million more than this time last year.

“In all previous years, Q4 has been TGS’s highest revenue quarter.”

Tags: TGS-NOPEC Geophysical Company


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