OSLO (Reuters) - Oslo-listed seismic surveyor TGS (TGS.OL) reported on Thursday its highest quarterly earnings in four years, beating expectations as demand from oil firms rose.
The company’s April-June operating profit tripled from a year earlier to $54 million (£41 million), well above the average forecast of $46.4 million expected in a Reuters poll of analysts.
TGS provides seismic data for companies to decide on where to drill for potential oil and gas reserves, and current crude prices give the industry incentives and cash to explore, it said.
“With oil price continuing well above the level budgeted by most E&P (exploration and production) companies, additional funds may be available for exploration spending by our customers at the end of the year,” Chief Executive Kristian Johansen said.
The surge in earnings was partly driven by high regional licensing activity and acreage acquisitions, particularly among independents and smaller oil firms, TGS said, while reiterating that demand can remain volatile from quarter to quarter.
The company reiterated its full-year financial outlook and maintained a quarterly dividend of $0.20 per share, as expected by analysts.
Reporting by Nerijus Adomaitis, editing by Terje Solsvik