Norwegian provider of multi-client geoscience data to oil and gas companies, TGS, saw a drop in both revenues and profit for the third quarter of 2016 compared to the same period last year.
The multi-client company on Thursday reported a net income of $1.75 million for 3Q this year, compared to $40 million in the corresponding quarter in 2015.
Operating profit for this year’s third quarter was $11 million, as opposed to $46 million posted in 3Q 2015.
Also, the company reported net revenues of $113 million in the third quarter of 2016, notably lower than the $169.5 million in 3Q 2015.
The company stated that, with customer activity remaining stable from 2Q to 3Q 2016, TGS was able to have a second consecutive quarter of positive operating profit.
Net late sales of $67 million went down 26% in 3Q 2016 from $90 million in the same quarter last year while net pre-funding revenues also went down by 47% in comparison to 3Q 2015 to $39 million in the third quarter of 2016.
TGS’ backlog amounted to $71.2 million at the end of 3Q 2016, a decrease of 61% from 3Q 2015 and 31% lower than last quarter. The decrease is mainly due to high production on the Gigante projects offshore Mexico.
TGS said it had reduced operating expenses by around 50% compared to the beginning of 2014, enabling the company to continue to deliver services at a lower cost.
Offshore Energy Today Staff