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    What TGS (OB:TGS)'s Brazil 4D Contract and Supermajor Software Deal Mean For Shareholders

    Simply Wall St·12/25/2025 20:27:45
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    • TGS recently announced it had secured a streamer 4D contract in Brazil’s Campos Basin, with a Ramform vessel scheduled to begin the roughly 75-day survey in the second half of 2026.
    • Separately, a supermajor entered into a multi-year enterprise agreement to license TGS’ Imaging AnyWare software suite, broadening its roster of top-tier digital clients and opening the door to joint R&D and technology integration.
    • Next, we’ll explore how the new multi-year Imaging AnyWare licensing deal with a supermajor could influence TGS’ broader investment narrative.

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    TGS Investment Narrative Recap

    To own TGS, you need to believe that rising demand for energy data and digital seismic solutions can offset cycles in exploration spending and oil price volatility. The new Brazil 4D streamer contract and Imaging AnyWare deal both support near term visibility but do not materially change the key short term catalyst, which is a sustained pickup in multi client sales, or the biggest risk, which is continued lumpiness in large contract awards and client concentration.

    The multi year Imaging AnyWare licensing agreement with a supermajor looks most relevant here, as it reinforces TGS’ push into higher margin, software based revenues tied to its Imaging & Technology division. If this part of the business continues to gain traction with top tier clients, it could partially soften the impact of weaker seismic project inflows and project deferrals in areas like Brazil on overall earnings stability.

    But even with these wins, investors still need to think carefully about the risk that large, concentrated customers...

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

    TGS' narrative projects $1.5 billion revenue and $226.2 million earnings by 2028. This assumes a 5.7% yearly revenue decline but an earnings increase of about $201 million from $25.0 million today.

    Uncover how TGS' forecasts yield a NOK89.29 fair value, in line with its current price.

    Exploring Other Perspectives

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

    Five fair value estimates from the Simply Wall St Community span roughly NOK61.77 to NOK420.13 per share, showing just how far apart individual views can be. Against that backdrop, the growing reliance on big ticket, concentrated contracts and the risk of project deferrals gives you one more reason to compare several viewpoints before deciding what TGS is really worth.

    Explore 5 other fair value estimates on TGS - why the stock might be worth 30% less 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.