Geophysical contractor TGS said it expects net revenues for the first quarter of 2016 to be approximately USD 64 million.
This compares to net revenues of USD 172 million in the first quarter of 2015, which represents a decrease of close to 63 per cent.
In addition to the undrawn revolving credit facility of USD 75 million, TGS reported cash balance of around USD 210 million.
The Oslo-listed company said that for 2016 it expects multi-client investments of approximately $220 million (more than 50 per cent lower than last year), of which 45 to 50% should be pre-funded. This financial guidance has not changed since January 7, 2016.
“This last quarter has arguably been the most severe of this down cycle with many customers focusing on cost and headcount reduction resulting in a significant pull back from exploration spending. TGS will continue our strong focus on cost control, cash flow and maintaining a healthy balance sheet in this challenging market,” said Kristian Johansen, CEO, TGS.
TGS said it will release its Q1 2016 earnings report on April 21, 2016. The company posted net loss of USD 121.5 million in Q4 2015.