CGG Announces its 2019 Second Quarter Results

Strong Operational Performance & Cash Flow Generation Validate the Asset Light Strategy

PARIS, France – July 26, 2019 – CGG (ISIN: FR0013181864 – NYSE: CGG), world leader in Geoscience, announced today its 2019 second quarter unaudited results.

Q2 2019: Strong Revenue and Ebitda growth year-on- year

  • IFRS figures: revenue at $335m, OPINC at $52m, net income at $(98)m
  • Segment revenue at $340m, up 24% year-on-year
    • Geoscience: Focus on more profitable businesses
    • Multi-client: Solid sales with high prefunding
    • Equipment: Strong volume increase fueled by Land market
  • Segment EBITDAs at $171m, up 51% year-on-year, a high 50% margin driven by increased profitability of Equipment and Geoscience
  • Segment operating income at $53m, including $(37)m impact of the new multi-client amortization policy, stable year on year, a 16% margin, supported by favorable Multi-Client sales mix and increase in land Equipment volumes

H1 2019: Strong equipment recovery and positive cash generation

  • IFRS figures: revenue at $607m, OPINC at $71m, net income at $(128)m
  • Segment revenue at $623m, up 23% year-on-year
  • Segment EBITDAs at $290m, up 46% year-on-year, a 47% margin
  • Segment operating income at $64m, including $(64)m impact of the new multi-client amortization policy, a 10% margin

Sound Financial Situation

  • H1 2019 Net Cash Flow of $13m
  • Q2 2019 Net Cash Flow of $(31)m due to $(58)m negative change in working capital expected to be recovered in H2
  • First semester net cash flow generation improvement of $147m
  • Net debt of $741m before IFRS 16 at the end of June, liquidity of $441m and leverage ratio at 1.2x

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:“I am very pleased to see the strong performance of CGG in the first half of 2019. As global offshore exploration continues to gradually recover and our clients maintain focus on improved efficiency, near field exploration and reservoir development, our Geoscience technology and services along with our portfolio of multi-client data are increasingly key profitability levers. Also, our Equipment business continued to benefit from the strong land equipment market. With the encouraging first half, we significantly improved cash generation as compared to last year and confirm our 2019 full year financial targets. The strategic partnership with Shearwater that we recently announced is a major milestone in our transition to an asset light, people, data, and technology company and we are well on track to close this transaction by year-end."


Q2 2019 Conference Call

  • An English language analysts conference call is scheduled the same day at 8:30 am (Paris time) – 7:30 am (London time)
  • To follow the conference call, please access the audio webcast:

From your computer at:

www.cgg.com

From your mobile phone or tablet:

QR code Q2

A replay of the conference call will be made available the day after for a period of 12 months via the webcast on CGG website at: www.cgg.com or via the QR code attached above.

For analysts, please dial 5 to 10 minutes prior to the scheduled start time the following numbers:

France call-in +33(0) 1 76 70 07 94
UK call-in +44(0) 844 571 8892
Access Code 8678899

More:

Download Full Press Release (PDF, 1.23MB, 19 pages)

Download Presentation (PDF)

Download Quarterly Report (PDF)

About CGG

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 businesses of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs around 5,100 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: 0013181864) 

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