PARIS, France – April 8, 2020
CGG anticipates first quarter 2020 figures as follow:
The recent and significant economic uncertainty created by the COVID-19 pandemic and the resulting volatility in global financial markets, combined with the large increase in oil supply and the expected decline in oil demand resulting from an economic contraction, leave CGG and the oil and gas sector as a whole, unable to reasonably estimate the future at this point in time.
As of today, the vast majority of our employees are telecommuting and are productive. In Geoscience, we continue to deliver projects on time and our data centers are all operational. Multi-client programs in Brazil, UK, US and Australia are ongoing. Equipment manufacturing plants in France and the US were shut down on March 19, while our plant in China resumed normal production after closing for two weeks in January.
However, given the current uncertainties on the duration of the confinement around the world and the magnitude of economic impact to our businesses, the financial objectives communicated on March 6, 2020, which were based on a US$55-65/bbl Brent oil price, are no longer effective. CGG is currently monitoring the situation and its clients’ activity closely to evaluate the impact on its 2020 financial performance, and is revisiting its 2020 and 2021 financial objectives, which are no longer valid.
We believe that our strategy based on high-end technology, services and data and products that support our clients’ reservoir development and production optimization efforts is the right one to take us through a lengthy period of depressed activity, should that situation occur.
The Company intends to release updated 2020 financial guidance on May 12, 2020 during its Q1 2020 financial presentation.
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