TGS (Buy, TP: NOK140.00) - Cash conversion set to improve
While Q4 marked another quarter with weak cash flow, we remain confident TGS is set to improve its cash conversion in 2025, supported by working capital tailwinds, the full effect of synergies and a YOY uptick in vessel utilisation. That said, raised MultiClient capex and lowered OBN revenues have triggered FCF cuts for 2025–2026e, prompting us to lower our target price to NOK140 (145), while reiterating our BUY.TGS Nopec Geophysical provides geoscience data to oil and gas exploration and production companies worldwide. In addition to global geophysical and geological data libraries that include seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, Co. also provides advanced processing and imaging services, interpretation products, permanent reservoir monitoring and data integration solutions.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.