Enhanced returns approaching as exploration comes back into focus

Research evidence excerpt

Enhanced returns approaching as exploration comes back into focus

Equity Research

European Energy Services

28 July 2026

TGS

Enhanced returns approaching as

exploration comes back into focus

2Q was a mixed back in terms of results, but an important TGS.OL/TGS NO OVERWEIGHT

step towards enhanced returns as a non-core disposal Unchanged

accelerates the deleveraging process. European Energy Services UnchangedPOSITIVE

Price Target NOK 200.00

TGS delivered a robust 2Q26, with OBN revenue holding up despite a lower crew count, Unchanged

streamer utilisation reaching a post-2013 high, and the integrated TGS/PGS model Price (24-Jul-26) NOK 131.80

continuing to flex capacity between multi-client and contract work. The EBITDA miss and Potential Upside/Downside +51.7%

EBIT beat vs consensus appeared largely mix and accounting driven, with elevated Source: Bloomberg, Barclays Research

operating costs and internal multi-client activity weighing on EBITDA while stronger

capitalisation and lower D&A supported EBIT. Near-term visibility is underpinned by high Market Cap (NOK mn) 25911

booked streamer utilisation into 3Q, a healthy backlog, and active winter work capture, Shares Outstanding (mn) 196.60

while the medium-term setup is improving through better exploration fundamentals and a Free Float (%) 98.21

faster deleveraging path that could bring higher distributions into the Q3 discussion. We 52 Wk Avg Daily Volume (mn) 0.5

are reducing our EBITDA expectation by 10% for 2026 on increased cost expectations and Dividend Yield (%) 4.52

lower multi-client revenues, but increase EBIT by 2%. With the shares currently trading at Return on Equity TTM (%) 4.98

ca.7x 2027F PE and the prospect of enhanced shareholder returns later in the year, we Current BVPS (NOK) 9.93