CGG Announces 2012 Fourth Quarter and Full Year Results
PARIS, France – February 28th 2013 – CGG (ISIN: 0000120164 – NYSE: CGG) announced today its non-audited fourth quarter 2012 and full year consolidated results. All comparisons are made on a year-on-year basis unless stated otherwise.
Unless stated otherwise, the fourth quarter and full year 2012 results are presented before the $(48) million impact of non-recurring items(1) related to the acquisition of the Fugro Geoscience Division.
- 2012 Revenue at $3.4 billion, up 7%
- Operating Income increased by 78% at $365 million, a margin of 11%
- Net Income at $123 million
- Positive free cash flow generation at $63 million
2012 Key Figures
|In million $||BEFORE(2)||AFTER(3)|
Equity from Investees
Cash Flow from Operation
Free Cash Flow
*Restated figures **EBIT=Operating Income + Equity from Investees contribution to Net Income
(1) These $48 million include $18 million of fees related to the operation and its financing and $30 million of impairment of goodwill linked to the brand Veritas.
(2) Before the impact of non-recurring items related to the acquisition of Fugro Geoscience Division
(3) After the impact of non-recurring items related to the acquisition of Fugro Geoscience Division
CGG CEO, Jean-Georges Malcor commented:
"In 2012, CGG reported a solid performance, with revenues up 7% and operating income up 78%, in line with our objectives of growth and profitability.
The initiatives launched in 2010 as part of our Performance Plan have particularly delivered in 2012. The marine operational performance improved with high availability and production rates while the commercial and technological successes of BroadSeis, StagSeis and Sentinel RD were confirmed reinforcing our leadership in high-end seismic technology. As announced also in the Plan, the Group achieved an ambitious cost monitoring program and reduced the G&A’s expenses.
In a recovering market and fuelled by the positive impact of our plans we achieved a Group operating margin of 11%. Sercel delivered a high profitability despite a moderate market growth particularly in marine. Land and Marine contracts divisions were back to profit and our Processing, Imaging & Reservoir division increased significantly its top line and achieved an excellent operational performance. As announced early January, multi-client after-sales were lower than expected due in particular to the delay of the licensing rounds in Brazil.
Finally, the acquisition completed in just four months of the Geoscience division of Fugro and the closing of the Seabed Geosolutions Joint-Venture diversify and strengthen our business profile towards Geology and Reservoir and represents a significant step forward in the transformation of our Group into a fully integrated Geosciences company.
The growing needs of our clients for exploration in always more complex geology, for conventional and unconventional reservoir characterization and more broadly for Geoscience solutions are strong indicators of a promising 2013 market and beyond.
In this context and with a stronger portfolio of businesses, we will accelerate CGG’s transformation in 2013, to become the partner of choice for our clients with our new assets and technologies base while actively managing our balance sheet.
The CGG Group, ideally positioned on three pillar divisions, Equipment, Acquisition, and GGR (Geology, Geophysics & Reservoir), will accelerate its profitability in 2013 through revenues increase of nearly 25% year on year."
Full Press Release (PDF: 1.1MB, 25 pages)
CGG (www.cgg.com) is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs 10,000 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers.
CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).
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