TGS NOPEC Geophysical Company ASA saw its shares rise by more than 7% on Wednesday after the seismic data firm provided preliminary revenue metrics for the second quarter of 2026 that exceeded a company-collected consensus.
Preliminary results and revenue recognition
The company said it expects produced revenue of approximately $400 million for the second quarter of 2026, above the consensus estimate of $359 million. By comparison, produced revenue in the second quarter of 2025 was $308 million. Management also expects IFRS revenue of about $373 million for the quarter, compared with $334.2 million in the second quarter of 2025.
TGS noted that produced revenue and IFRS revenue figures differ because multi-client revenue that is committed before project completion is recorded on a percentage-of-completion basis under the produced revenue metric, rather than being recognized only when customers receive access to finished data under IFRS rules.
Investment levels and fleet utilization
Multi-client investment is projected to be roughly $168 million in the second quarter of 2026, up from $114 million a year earlier. The company reported detailed operational capacity and crew metrics showing shifts in how vessel capacity was allocated between contract work and multi-client projects.
For contract work, the normalized Ocean Bottom Node (OBN) crew count was reported at 1.1 in Q2 2026, down from 1.7 a year earlier. The normalized multi-client crew count fell to 0.6 from 1.1 over the same period.
Active seismic streamer 3D vessel capacity allocated to contract work declined to 19% from 55% a year earlier, while allocation to multi-client work rose to 75% from 23%. The company reported steaming capacity at 0%, down from 9%; yard capacity at 3%, down from 7%; and standby capacity at 3%, down from 6%. The total number of vessels remained unchanged at six.
Management commentary
CEO Kristian Johansen said, "I am very pleased to report strong Q2 revenues with a Y/Y growth of 30%, driven primarily by solid multi-client performance in Latin America and Africa. Asset utilization during the quarter was slightly above our expectations, with 3D streamer utilization reaching 94% and an average normalized OBN crew count of 1.7."
The company also commented on market conditions, saying that the de-escalation of the conflict in the Middle East has contributed to lower oil prices, but that oil companies "are gradually becoming more focused on replenishing reserves through exploration." Management added that, supported by "increasing energy security requirements and the need to sustain long-term production," TGS remains confident "that exploration activity is set to grow over the coming years."
Implications
The preliminary numbers indicate stronger multi-client performance and higher investment in multi-client surveys versus last year, alongside reallocation of vessel capacity toward multi-client projects. The company provided both produced and IFRS revenue expectations for the quarter and clarified the accounting distinction between those measures.
Key points
- Produced revenue for Q2 2026 is expected to be about $400 million, versus $308 million in Q2 2025.
- Multi-client investment is forecast at approximately $168 million in Q2 2026, up from $114 million a year earlier.
- Vessel capacity allocation shifted toward multi-client work (75% from 23%), with contract work allocation reduced (19% from 55%) and overall fleet size steady at six vessels.
Risks and uncertainties
- Oil-price movements: Management noted lower oil prices following de-escalation in the Middle East, a factor that can influence exploration spend by oil companies.
- Operational capacity changes: Shifts in vessel and crew allocations between contract and multi-client work create exposure to demand changes across those market segments.
- Accounting recognition timing: Differences between produced revenue (percentage-of-completion recognition for multi-client projects) and IFRS revenue can affect reported timing of revenue and comparisons across periods.
This report presents the company's own preliminary metrics and management commentary; it does not provide a certified or final earnings statement. Readers should note that the figures above were presented by the company as expectations and operational reports for the quarter.