TGS ASA

Top-line & earnings: modest revenue growth, but “reported” profitability distorted by a one-off gain and Q3 incidents - Revenues: $397m in Q3’26 (+2% YoY vs. $388m in Q3’25). - EBITDA: $222m, but includes a $41m gain from the sale of the North American well data business early in the quarter. - Reported EBIT: $86m; adjusted EBIT: $46m (vs $94m in Q3’25), largely due to the lack of comparable prior-year profitability (and the one-off items). - Negative/constraint: operational “accidents/incidents” hurt Q3 profitability (described as occurring on 2 different surveys in multi-client operations).

Segment performance: strong multi-client sales-to-investment; marine contracts improved; imaging growing - Multi-client - External revenues $195m (down YoY $219m), but management said the prior-year quarter had a substantial transfer fee not repeated in Q3’26. - Investments $64m vs $86m YoY → LTM sales/investment ~1.7x; Q3-only >3x (good sign of monetization/late sales and disciplined spend). - Multi-client EBITDA $175m (still strong but down vs $203m YoY). - Marine Data acquisition - External revenues $180m (up from $135m YoY). - Internal production $39m vs $96m YoY (reflecting lower in-house multi-client production). - EBITDA $40m, with margin pressure attributed to cost challenges from incidents and continued contract pricing pressure. - Management says vessels are largely sold out for the next ~5 months (capacity tightness). - Imaging & technology - External $18m; internal production $23m; imaging EBITDA $10m (slightly up vs $9m YoY). - Imaging centers described as running at full capacity.

Guidance / near-term financial outlook: higher full-year cost outlook; Q4 margins pressured but improving working capital expected - Gross operating cost: - Earlier expectation: ~$950m for 2026. - Now expected: ~$1.05bn full-year (added ~$50m from higher activity/utilization vs plan + ~$50m from project cost increases incl. fuel and operational challenges impacting Q3). - Implies ~$250m gross operating cost in Q4. - Cash flow: - Q3 OCF $124.8m, but working capital movement was negative (~-$40m) (and YTD also slightly negative). - Company expects positive working capital in Q4 and Q1, which should improve cash generation in the quarters after Q3. - Capex: guided at about ~$30m per quarter (Q4 expectation).