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1. Company Snapshot

1.a. Company Description

TGS ASA provides geoscience data products and services to the oil and gas industry worldwide.The company offers geophysical multi-client data, including seismic data; and geophysical library, such as gravity, magnetic, seep, geothermal, controlled source electromagnetic, and multibeam data.It also provides geological services comprising digital well logs; and interpretation products and data integration solutions.


In addition, the company offers imaging services, which include depth and time imaging; marine, land, and ocean bottom cables and nodes; anisotropic imaging; transition zone processing; multi component processing; shear wave; and 4D time-lapse, as well as wide azimuth data processing.Further, it provides data and analytics solutions; and PRIMA, a multifunction exploration software suite.The company was formerly known as TGS-NOPEC Geophysical Company ASA and changed its name to TGS ASA in June 2021.


TGS ASA was founded in 1981 and is headquartered in Oslo, Norway.

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1.b. Last Insights on TGS

TGS ASA's recent performance was driven by strong Q3 2025 results, with revenues reaching $388 million, a 26% sequential growth. The company's multi-client performance was solid, with sales-to-investment of 1.9x year-to-date. A quarterly dividend of $0.155 per share was declared, and a significant contract was secured with Chevron for marine streamer and OBN acquisition services. Additionally, TGS announced a 3D seismic onshore survey in the Uinta Basin, marking its first multi-client project in the region. A one-off loss of $294.5 million impacted reported results.

1.c. Company Highlights

2. TGS Q3 2025: Strong Recovery with Improved Profitability

TGS reported a significant recovery in Q3 2025, with revenues reaching $388 million, a 26% increase from Q2, and EBITDA of $242 million, representing a 62% profit margin. The company's EPS came in at $2.9, beating estimates of $1.73. The strong financial performance was driven by a robust multi-client sales figure of $226 million and a significant reduction in net operating expenses, which decreased to $147 million from $221 million in the same quarter last year.

Publication Date: Oct -25

📋 Highlights
  • Revenue Growth:: Q3 revenue surged to $388 million, up 26% from Q2, driven by improved business performance.
  • Strong EBITDA Margin:: EBITDA reached $242 million (62% margin), while EBIT hit $105 million (27% margin), reflecting cost efficiency.
  • Order Backlog:: Total backlog rose to $473 million, with $436 million added in Q3, signaling robust future revenue potential.
  • Free Cash Flow & Debt Reduction:: Free cash flow hit $81 million, reducing net debt from $479 million to $432 million.
  • Cost Optimization:: Operating expenses dropped to $217 million (from $289 million in Q3 2024), with gross OpEx guidance below $950 million.

Operational Highlights

The company's multi-client investments were $86 million, resulting in a sales-to-investment ratio of 2.1. New awards and key projects included PAMA Phase II offshore Brazil and the Megabar Extension Phase I. The Marine Data acquisition had a relatively weak quarter, but the company secured new contracts, including a streamer contract in the Mediterranean and a large streamer contract offshore Indonesia.

Financial Performance

The company's cash flow was strong, with a free cash flow of $81 million, allowing it to reduce its net debt from $479 million to $432 million. The gross operating expenses decreased to $217 million from $289 million in Q3 2024. The company's guidance for gross costs remains at around $950 million for the year, with expectations to come in below this figure.

Valuation and Outlook

With a P/E Ratio of 69.51 and an EV/EBITDA of 2.49, the market is pricing in a certain level of growth. The Dividend Yield is 7.27%, indicating an attractive return for income investors. The company's net debt to EBITDA ratio is 0.73, indicating a manageable debt level. As Kristian Johansen noted, "it was a relief to come back with better numbers than in Q2, with revenue growth of 26% and strong profitability." Analysts estimate next year's revenue growth at -2.2%, but the company's guidance and operational performance suggest a more positive outlook.

Market Outlook and Guidance

The industry needs to invest more to meet demand growth for oil and gas, with the current investment level of $600 billion likely to satisfy flat demand, but an increase to $750 billion is needed to meet expected demand growth. TGS expects continued growth in external imaging revenues, with a goal of exceeding $100 million in 2026, and is planning to use at least 50% to 70% of its fleet on multi-client projects.

3. NewsRoom

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Is TGS (OB:TGS) Undervalued After Its 27% Year-to-Date Share Price Slide?

Dec -03

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TGS Awarded OBN Contract in Europe

Dec -01

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TGS Awarded Reservoir Monitoring and Source Contract Offshore Norway

Nov -18

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TGS Announces Pelotas Norte Phase I Multi-client Survey Offshore Brazil

Nov -17

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TGS and Chevon Enter into a Long-term Deep Water Seismic Capacity Agreement

Nov -05

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TGS (OB:TGS): $294.5M One-Off Loss Challenges Bullish Margin Recovery Narratives

Oct -24

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TGS Quarterly Dividend

Oct -23

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TGS Announces 3D Seismic Onshore Survey in the Uinta Basin

Oct -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.31%)

6. Segments

Acquisition

Expected Growth: 10%

The acquisition from TGS ASA is driven by increasing demand for seismic data, expansion into new markets, and strategic partnerships. Additionally, advancements in technology, improved data analytics, and growing E&P investments are contributing to the 10% growth rate.

Western Hemisphere

Expected Growth: 11%

Strong demand for seismic data in the Western Hemisphere, driven by increasing exploration and production activities in the Gulf of Mexico, Brazil, and Guyana. Rising oil prices and improved drilling economics also contribute to the 11% growth, as oil majors and independents seek to replenish reserves and increase production.

Eastern Hemisphere

Expected Growth: 13%

TGS ASA's 13% growth in the Eastern Hemisphere is driven by increasing exploration activities in Asia, particularly in Malaysia and Indonesia, as well as rising demand for seismic data in the Middle East. Additionally, growing investments in renewable energy and infrastructure development in the region are contributing to the growth.

Elimination

Expected Growth: 0%

Elimination from TGS ASA with 0% growth indicates a lack of competitive advantage, inefficient cost structure, and failure to innovate. This is driven by declining market share, inability to adapt to changing customer needs, and ineffective sales and marketing strategies.

Digital Energy Solutions

Expected Growth: 15%

TGS ASA's Digital Energy Solutions segment growth is driven by increasing demand for data-driven insights in the energy industry, expansion into new markets, and strategic partnerships. The 15% growth rate is also fueled by the rising adoption of digitalization and automation in oil and gas operations, as well as the need for energy companies to reduce costs and improve operational efficiency.

Imaging

Expected Growth: 12%

TGS ASA's 12% growth in Imaging is driven by increasing demand for seismic data, rising exploration and production activities, and growing adoption of digitalization and automation in the oil and gas industry. Additionally, expansion into new markets, strategic partnerships, and investments in technology and infrastructure are contributing to the segment's growth.

G&A

Expected Growth: 8%

TGS ASA's G&A growth of 8% is driven by increasing investments in digitalization, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth. Furthermore, the rising demand for seismic services and the company's strong backlog have also supported the growth.

7. Detailed Products

Seismic Data Acquisition

TGS ASA provides seismic data acquisition services, which involve the collection of seismic data onshore and offshore to help oil and gas companies explore and produce hydrocarbons.

Seismic Data Processing

TGS ASA offers seismic data processing services, which involve the processing and analysis of seismic data to create detailed images of the subsurface.

Seismic Data Interpretation

TGS ASA provides seismic data interpretation services, which involve the interpretation of seismic data to identify potential hydrocarbon reservoirs and optimize field development.

Multi-Client Data

TGS ASA offers multi-client data, which involves the collection and sale of seismic data to multiple clients, reducing the cost of data acquisition for individual companies.

Well Data

TGS ASA provides well data, which involves the collection and analysis of data from oil and gas wells to optimize drilling and production operations.

Geological and Geophysical Consulting

TGS ASA offers geological and geophysical consulting services, which involve the provision of expert advice on geological and geophysical matters.

8. TGS ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TGS ASA is medium due to the availability of alternative services and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for TGS ASA is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TGS ASA is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for TGS ASA is high due to the low barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for TGS ASA is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.44%
Debt Cost 9.00%
Equity Weight 90.56%
Equity Cost 9.00%
WACC 9.00%
Leverage 10.42%

11. Quality Control: TGS ASA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Schoeller-Bleckmann Oilfield Equipment

A-Score: 5.6/10

Value: 7.6

Growth: 5.4

Quality: 5.0

Yield: 6.9

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
TGS

A-Score: 4.5/10

Value: 6.8

Growth: 4.3

Quality: 3.9

Yield: 8.8

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Gulf Marine Services

A-Score: 4.2/10

Value: 8.8

Growth: 3.1

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Edda Wind

A-Score: 3.7/10

Value: 6.0

Growth: 3.1

Quality: 2.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CGG

A-Score: 3.5/10

Value: 9.2

Growth: 4.4

Quality: 2.3

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
PGS

A-Score: 2.7/10

Value: 8.2

Growth: 2.1

Quality: 1.6

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

91.35$

Current Price

91.35$

Potential

-0.00%

Expected Cash-Flows