TGS Nopec’s short-term outlook is not rosy
TGS Nopec Geophysical Company’s (TGSNF) pre-funding investment-to-operational investment ratio is on a declining trend as its clients reassess the returns on the investment. Recently, there have been delays in some of its projects. The company’s management does not expect upstream activity to rebound in the short term.
On the other hand, TGSNF continues to strike deals for new projects. It has its projects in the vital offshore locations, including the U.S. Gulf of Mexico, Brazil, and the North Sea. Successful bidding rounds can improve its medium-to-long