TGS ASA

Q3 2026 headline performance (good, but with one-offs & cost pressure): Revenues ~$397m (+2% YoY); Q3 EBITDA $222m but includes a $41m gain from sale of the well data business → reported EBIT $86m. Reported profit is distorted by the well-data sale; adjusted EBIT ~ $46m vs $94m YoY. Operating costs were ~$30m higher than “should be” due to operational challenges/accidents, pressuring profitability (main negative theme of the quarter).

Segment takeaways (mixed): - Multi-client (strong core cash engine): External revenues $195m (down vs $219m YoY), but Q3 2025 had a large transfer fee that didn’t repeat. Investments $64m vs $86m YoY (lower capex in line with seasonality/plan). Sales-to-investment very strong (quarterly ratio >3x, LTM ~1.7x). EBITDA margin remains very strong (multi-client EBITDA $175m vs $203m YoY). - Marine Data acquisition (demand improved, but profitability hit): External revenue $180m vs $135m YoY, but EBITDA $40m (low margin) due to operational/cost challenges + contract pricing pressure; internal production fell ($39m vs $96m YoY) because multi-client investment was lower.

Operational challenges (bad & likely contained): Two notable incidents in Q3: - Norway Asta Graben streamer survey: propulsive/incident-type problem causing downtime and halting the survey → completion deferred to 2027. - OBN node-on-a-rope efficiency issue in Norway: lower-than-expected efficiency → extended charter / extra costs. - Company guidance tone: not expected every quarter; projects were completed by now, so impact should be mostly early Q4 and history afterward.