Oslo-listed seismic data specialist TGS has announced that it will be selling two of its vessels and stacking another due to challenging conditions in the market.
Kristian Johansen, CEO of TGS, said in the second quarter 2025 earnings release that the company is in the process of selling the 1995-built Ramform Explorer and the 1998-built Ramform Valiant seismic vessels.
According to the company, sale contracts for both vessels have already been signed.
The company will not earn much from the sale, as the company’s CEO claimed that the sale prices are in the low single-digit millions. However, he sees the sale as a net positive since the vessels cannot be used for seismic work, as per the sale contract. The buyer’s name was not disclosed at this time.
TGS will also be stacking the 1999-built Ramform Vanguard. The vessel is currently busy but will be stacked upon completing the contract.
The results in the quarter were not stellar as revenues dropped significantly from $381m in last year’s second quarter to $308m now. The company also noted an operating loss of $21.5m compared to an operating profit of $27.4m in 2Q 2024.
Johansen stated that significant macroeconomic uncertainty and high oil price volatility during the second quarter caused TGS’ clients to be more cautious in the short term, but he sees the long-term need for more exploration as intact.
“With falling remaining reserve life, many large E&P companies will face declining production rates unless more reserves are added and brought on stream. As a result, we remain optimistic for the long-term opportunities for TGS,” the company’s CEO added.
