PARIS, France – November 7th 2018 – CGG (ISIN: FR0013181864), world leader in Geoscience, announced today its 2018 third quarter unaudited results.
1Based on transitory IFRS 15 application
2Segment figures presented before IFRS 15 and Non-Recurring Charges (NRC)
Commenting on these results, Sophie Zurquiyah, CGG CEO, said:“Our third quarter revenue was up 4% year-on-year, confirming the gradual market recovery. Geoscience saw robust performance and Multi-Client delivered a high level of after-sales but was impacted by delayed pre-funding recognized in October. Equipment sales increased significantly for land achieving double digit operating income margin. Acquisition continues to suffer from low prices in a commoditized market.
In that context, we remain on track with our 2018 targets based on sizeable year-end Multi-Client opportunities and strong Equipment deliveries.”
Transitory application of IFRS 15
CGG implemented IFRS 15 on January 1, 2018 with a modified retrospective application. The only change compared to Group historical practices is related to multi-clients prefunding revenues. These prefunding revenues are recorded at delivery of the final data while they were historically recorded based on percentage of completion.
CGG, as other seismic players, presents then a dual approach in the Group’s results including:
(i) one set of figures (the “IFRS” figures) with pre-commitment revenue recognized in full only upon delivery of the final data and
(ii) a second set of figures (the “Segment figures”) produced in accordance with the Group’s historical method, which correspond to the figures used for internal
management reporting purposes and provide comparative information during the year 2018.
An English language analysts’ conference call is scheduled today at 8:30 am (Paris time) – 7:30 am (London time).
A replay of the conference will be available on the CGG website at: www.cgg.com.
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