TGS to Sell Two Vessels and Stack Another Amid Challenging Market Conditions

Oslo-listed seismic data specialist TGS has announced its decision to sell two of its vessels and stack another due to the challenging conditions in the market. The company’s CEO, Kristian Johansen, revealed this information in the second quarter 2025 earnings release.

According to Johansen, TGS is currently in the process of selling the 1995-built Ramform Explorer and the 1998-built Ramform Valiant seismic vessels. Sale contracts for both vessels have already been signed, although the sale prices are reported to be in the low single-digit millions.

While the sale may not bring significant revenue, Johansen views it as a positive move since the vessels are no longer suitable for seismic work as per the sale contract. The identity of the buyer remains undisclosed at this time.

In addition to the vessel sales, TGS will also be stacking the 1999-built Ramform Vanguard. Although the vessel is currently engaged in operations, it will be stacked upon completing its current contract.

The company’s financial results for the quarter reflect the challenging market conditions, with revenues dropping from $381 million in the previous year’s second quarter to $308 million. TGS also reported an operating loss of $21.5 million, compared to an operating profit of $27.4 million in the second quarter of 2024.

Johansen attributed these results to significant macroeconomic uncertainty and high oil price volatility, which led to caution among TGS’ clients in the short term. However, he remains optimistic about the long-term outlook for exploration activities, citing the need for additional reserves to maintain production rates.

“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,” Johansen stated.