TGS-Nopec Q3 pretax below expectations but remains bullish about prospects |
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Thu, 25 Oct 2007 08:38
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OSLO (Thomson Financial) - Seismic firm TGS-Nopec posted third quarter profits below expectations at the pretax level, after seeing earnings hit by productivity issues on two of its new 3D vessels, but the firm said it believes the market outlook to be have ry strong.'For the third quarter TGS posted pretax profits of 50.0 mln usd, down from 57.1 mln last year and below the 55 mln consensus forecast of analysts polled by TDN Finans.At the operating level, profits came in at 48.9 mln usd, down from 54.8 mln last year and below the 54 mln consensus forecast.Looking ahead, the seismic firm said: 'As evidenced by our backlog growth both in the multi-client and contract sectors, the outlook for the seismic market continues to be very strong.'However TGS added that vessel utilisation rates 'will be lower than normal' in the coming quarter due to the steaming time necessary to deploy the fleet, as well as an unplanned dry-docking for repairs of a chartered 3D vessel in West Africa.Earlier this summer TGS said it would merge with Norwegian peer Wavefield Inseis in an all-share deal.As a result of the merger, TGS said it has decided it is appropriate to start giving quarterly guidance.In the fourth quarter it said it expects sales to be in the range of 190210 mln usd, while annual multi-client investments are now expected to be in the range of 145155 mln usd, down from 160-170 mln.'We plan to issue full year 2008 guidance following a full budgeting process to be conducted after the closing of the merger', TGS said.alastair.reed@thomson.comar/jfrCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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