Marine seismic player TGS has reported a net loss for the fourth quarter of 2015. The loss was $121 million, versus a net profit of $32 million a year ago.
Consolidated net revenues were USD 132 million, compared to USD 298 million in Q4 2014. Seismic contractors have been hit dearly with the lack of spending by oil and gas companies, caused by the lingering oil price.
For the full year 2015, the Norway-based seismic contractor said its loss was $28 million, down from $216 million profit in 2014.
While 2015 was obviously challenging year for seismic contractors, with some of them – Dolphin Geophysical – even going bankrupt, TGS does not expect the market situation will improve in 2016.
Robert Hobbs, CEO of TGS said: “Oil companies are continuing to cut E&P spending. The market for seismic data is likely to remain weak in 2016.“
TGS is planning for a lower activity level in 2016 with operational multi-client investments being reduced by more than 50% compared to 2015.
In order to keep costs at bay, the company in the fourth quarter 2015 reduced the global workforce by 130 people. Overall, TGS laid off approximately 28% of its workforce in 2015.
“We are continuing to work hard on identifying interesting projects that can create long-term value for our shareholders and provide rapid growth when the market improves,” Hobbs said.
“The financial guidance released on 7 January 2016 remains unchanged. That is, we still anticipate multi-client investments of USD 220 million, of which 45-50% is expected to be prefunded by our clients.”
Elsewhere in the seismic sector, Polarcus on Monday announced job cuts within its executive management. As part of the cost management program implemented at the end of 2014, Polarcus has so far cut 26% of its workforce.
Offshore Energy Today Staff