Overview
TGS NOPEC Geophysical Company ASA saw its shares rise more than 7% on Wednesday after the seismic data provider announced a preliminary outlook for the second quarter of 2026 that exceeds market expectations.
Financial Guidance
The company said it expects produced revenue of approximately $400 million for Q2 2026, compared with the consensus estimate of $359 million. For the same quarter in 2025, produced revenue was $308 million. Management also projected IFRS revenue of about $373 million for Q2 2026, up from $334.2 million in Q2 2025, indicating a year‑over‑year growth of roughly 30%.
Multi‑Client and Operational Metrics
Multi‑client investment is forecast at $168 million for Q2 2026, versus $114 million a year earlier. The normalized Ocean Bottom Node (OBN) crew count for contract work fell to 1.1 from 1.7 a year prior, while the normalized multi‑client crew count declined to 0.6 from 1.1. Active seismic streamer 3D vessel capacity allocated to contract work dropped to 19% from 55%, whereas allocation to multi‑client work rose sharply to 75% from 23%. Steaming capacity fell to 0% from 9%, yard capacity to 3% from 7%, and standby capacity to 3% from 6%. The fleet size remained unchanged at six vessels.
Management Commentary
CEO Kristian Johansen said the company delivered strong Q2 revenues with a 30% YoY growth, driven primarily by solid multi‑client performance in Latin America and Africa. He noted that asset utilization was slightly above expectations, with 3D streamer utilization reaching 94% and an average normalized OBN crew count of 1.7. Johansen added that the de‑escalation of the Middle‑East conflict has lowered oil prices, yet oil companies are increasingly focused on replenishing reserves through exploration. He expressed confidence that exploration activity will continue to grow, supported by rising energy‑security requirements and the need to sustain long‑term production.