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How New Brazil and Europe Seismic Contracts At TGS (OB:TGS) Has Changed Its Investment Story

Simply Wall St · 2d ago
  • TGS recently announced it had secured two offshore seismic survey contracts: a streamer 4D project in Brazil’s Campos basin and an ocean-bottom node survey in Europe, with vessel mobilizations scheduled for mid-2026 and expected durations of roughly 75 and 60 days, respectively.
  • These awards enhance TGS’s future activity pipeline by combining traditional streamer work with higher-complexity OBN acquisition, potentially supporting backlog quality and utilization into 2026.
  • We’ll now explore how these new Brazil and European seismic contracts could influence TGS’s investment narrative and future earnings profile.

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TGS Investment Narrative Recap

To own TGS, you need to believe that demand for high-end offshore seismic, particularly 4D and OBN, remains healthy enough to support utilization and earnings, even as revenue is forecast to decline. These new Brazil and European contracts modestly strengthen visibility for 2026, but they do little to change the near term focus on earnings volatility and the risk that concentrated, lumpy customer spending could still weigh on results.

The most relevant recent announcement here is the five year extension of reservoir monitoring and PRM/4D OBN contracts on the Norwegian continental shelf, which, together with the new OBN award in Europe, underlines TGS’s tilt toward more complex, asset-heavy OBN work. For investors, this reinforces the key catalyst of building a longer duration backlog in monitoring projects while also heightening the risk of underutilized assets and margin pressure if project timing or client appetite weakens.

Yet investors should also weigh how concentrated client exposure could amplify the impact if one large contract is delayed or canceled...

Read the full narrative on TGS (it's free!)

TGS' narrative projects $1.5 billion revenue and $226.2 million earnings by 2028. This implies revenues will decrease by 5.7% per year and earnings will increase by about $201 million from $25.0 million today.

Uncover how TGS' forecasts yield a NOK87.90 fair value, a 4% downside to its current price.

Exploring Other Perspectives

OB:TGS 1-Year Stock Price Chart
OB:TGS 1-Year Stock Price Chart

Six Simply Wall St Community fair value estimates for TGS range widely from NOK61.77 to NOK425.26, underscoring just how far apart views on upside potential can be. Against this backdrop, the growing reliance on fewer, larger customers and lumpy project awards may help explain why opinions differ so much on how sustainable TGS’s earnings power really is over time.

Explore 6 other fair value estimates on TGS - why the stock might be worth over 4x more than the current price!

Build Your Own TGS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your TGS research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
  • Our free TGS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TGS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.