Oslo-listed seismic surveyor TGS posted a smaller-than-expected increase in fourth-quarter revenues on Jan. 9 and said a recent fall in crude prices created uncertainty around the spending plans of its customers in the oil industry.
The company sells its geological surveys to E&P companies seeking to drill for hydrocarbons, as the data helps them determine the presence of oil and gas in offshore and onshore reservoirs.
Preliminary revenues for the October-December period stood at $188 million, up from $157 million a year ago but lagging an analyst consensus estimate of $204.6 million, according to Refinitiv data.
While oil companies have increased their exploration investments after years of cost cuts, the recent crude price volatility impacted their spending on seismic data in late 2018, and may also impact the coming year, TGS said in a statement.
“With oil prices currently trading below $60 per barrel, there continues to be some uncertainty on 2019 E&P spending, particularly offshore,” Kristian Johansen, TGS CEO, said.
“However, I’m confident that our quality data library and pipeline of new projects position TGS for another successful year,” he added.
On Jan. 7, competitor Petroleum Geo Services reported better-than-expected fourth-quarter sales and earnings numbers, driving its shares sharply higher.
TGS’ shares rose 20% in the last week, closing at 249.8 Norwegian crowns (US$29.36) on Jan. 8.
Recommended Reading
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.