TGS said its operating revenues were down by more than 50% in the final quarter of last year compared with the same time in 2014.
The seismic company said it also expects its full year revenues to be down by one third, with weak market conditions expected to continue into 2016.
In a statement TGS said it was preparing itself for a lower activity level and has planned for multi-client investments to be prefunded by between 45 to 50%.
In November last year, the company said it would be reducing its headcount by up to 130 jobs.
The Norwegian company said the move has been made in a bid to improve efficiency and competitiveness during challenging market conditions.
Chief executive Robert Hobbs said: “TGS’ 2016 operational multi-client investments will be reduced by more than 50% compared to 2015.
“This is partly a result of lower cost of acquiring seismic data as average vessel day rates will be substantially lower than in 2015. Furthermore, the activity level will be reduced as oil companies have become less willing to prefund new surveys.
“As a result of the weak market conditions there is higher uncertainty than usual with respect to late sales of seismic data. Late sales are normally heavily dependent on oil companies’ E and P spending. This relationship will continue in 2016 and as a result, TGS expects late sales to move in line with or slightly better than general E & P spending trends.
“However, the significant reduction in investments combined with the effect from the cost cutting measures implemented last year should support positive cash flow development despite the challenging environment.”