TGS (TGS) SB1 Markets Energy Conference 2025 presentation summary

Strategic achievements in 2024

• Completed acquisition and integration of PGS, achieving synergy targets ahead of plan and realizing approximately USD 35 million in synergies, exceeding expectations.

• Year-over-year EBIT increased by 23% in 2024, with multi-client sales-to-investment ratio at 2.2x and contract revenues up 12%.

• Fully refinanced legacy PGS debt at attractive terms, reducing gross debt by about USD 170 million and annual interest expenses by USD 35 million.

• Positioned to improve cash flow and increase shareholder distributions.

Market outlook and performance

• 2025 E&P spending expected to remain flat compared to 2024, with offshore spending growth outpacing overall E&P spending.

• Active 3D streamer contract tenders remain at decent levels, with several major awards announced and continued news flow expected in early 2025.

• Mid to deepwater OBN market has grown about 20% annually over four years, with 70% of 2024 revenues already secured for 2025.

• TGS maintains OBN capacity and focuses on profitability rather than market share.

2025 business priorities and growth areas

• Plans for higher multi-client investment and continued high pre-funding levels in 2025.

• Improved vessel utilization and strategic relationships expected from integrated business model.

• OBN crew count to remain stable, with some capacity allocated to multi-client projects.

• Anticipates strong growth in Imaging and continued expansion in New Energy Solutions.