TGS (TGS) Barclays Energy-Power Conference presentation summary

Financial performance and cost discipline

• Maintained EBITDA margins above 50% in H1 2025 despite revenue decline, driven by significant cost reductions and synergy realization from the PGS merger.

• Gross operating costs reduced by $150 million relative to 2024, with further $100 million reduction achieved in 1H 2025.

• Net debt at $479 million as of June 2025, with leverage ratio significantly below industry peers and a target net debt range of $250–350 million.

• Dividend yield stands at 7.3%, supported by strong cash flow and disciplined capital allocation.

• 2025 cash outflow guidance highlights focus on operational efficiency and prudent investment.

Integrated business model and technology leadership

• Only fully integrated geophysical company, offering multi-client, streamer, OBN acquisition, advanced imaging, and new energy solutions.

• Over $4 billion invested in multi-client data since 2018, with global coverage across mature and frontier basins.

• Enhanced focus on external imaging markets, rapid market share gains, and positive financial impact from new technologies like eFWI.

• Significant reduction in HPC costs and ongoing development of generative AI for subsurface data analysis.

• Integrated model enables asset optimization and long-term agreements in a cyclical industry.

Market outlook and industry trends

• Oil and gas projected to remain over 50% of global energy mix by 2050, with oil demand rising to 105 mb/d and gas to 500 BCFD.

• Exploration spending remains low, impacting reserve replacement ratios, signaling a need for increased exploration activity.

• High-quality seismic data is critical for exploration success and is valued by investors, as evidenced by positive share price reactions to discoveries.

• Brazil identified as a seismic hotspot, with extensive multi-client data coverage and ongoing licensing rounds.

• OBN market revenues expected to decline 10–15% in 2025 versus 2024, with some projects postponed to 2026.