Half Year 2024 TGS ASA Earnings Call Transcript
Key Points
- Strong contract inflow of $368 million in Q2, leading to a total backlog of $611 million.
- Early sales rate increased to 94% from 77% in the same quarter last year.
- Successful completion of the PGS transaction on July 1, 2024, with substantial synergies expected.
- Significant growth in Digital Energy Solutions, with revenues up 62% compared to the same quarter last year.
- Continued strong performance in the OBN business, with a gross margin of 34% on proprietary activities.
- Total revenues decreased to $215 million from $241 million in Q2 2023.
- EBIT dropped to $28 million from $39 million in the same quarter last year.
- Proprietary revenues fell to $100 million from $113 million in the same quarter last year.
- High nonrecurring transaction costs related to the PGS acquisition, amounting to $6.2 million in Q2.
- Lower early sales of $49 million compared to $66 million in the same quarter last year.
Good morning, and welcome to TGS Q2 2024 results presentation. My name is Bard Stenberg, Vice President of Investor Relations in TGS. Today's presentation will be given by CEO, Kristian Johansen; and CFO, Sven Borre Larsen. Before we start, I would like to draw your attention to the forward-looking statements showing on the screen and available in today's presentation and earnings release. (Event Instructions) So with that, I give the word to you, Kristian.
Thank you, Bard. So I hit the highlights right away. So TGS had POC revenues and this is stand-alone TGS. POC revenues of $215 million in Q2, that compares to $241 million in Q2 of 2023. Our late sales were $66 million, that's up from $63 million in the same quarter of last year. And then we had early sales of $49 million, which compares to $66 million of last year, but the early sales rate is up from 77% last year to 94% in Q2 of this year, signaling that we had a combination of strong
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