CGG Announces its 2020 First Quarter Results

Solid First Quarter

Adjusting to an Unprecedented Crisis

PARIS, France – May 12, 2020 – CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its 2020 First Quarter unaudited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:“As we are navigating through this unprecedented industry crisis, created by the combined results of oversupply and reduction in demand due to the COVID-19 pandemic, our priority remains on the health and safety of our employees and all our stakeholders, along with the continuity of our business to meet our clients’ needs. With our new asset light business profile, and our business segments positioned around reservoir evaluation and production optimization, including our data library, which is focused on proven or mature sedimentary basins, we expect CGG to be much more resilient than in the past. While the duration of this severe crisis is uncertain, we are focusing on what we can control: managing our liquidity, implementing the required capex and cash cost reductions and adjusting the organization as necessary while maintaining our R&D efforts. With $624m of cash on hand after a solid Q1 and no bond debt to reimburse before April 2023, I am confident that our asset light strategy based on high-end technology, services, data and products positions us the best for these challenging market conditions."

Q1 2020 Positive cash generation

  • IFRS figures: revenue at $253m, OPINC at $(40)m
  • Segment revenue at $271m, down 4% year-on-year, with solid multi-client revenue and lower equipment sales
  • Segment EBITDAs at $123m, up 3% year-on-year, a 45% margin
  • Segment operating income at $(31)m, including $(70)m impairments mainly related to multi-client library, and at $39m, a 14% margin, before them
  • Segment Free Cash Flow at $44m
  • Net Cash Flow was positive at $17m 
  • Net loss of $(98)m, including $(27)m loss from Discontinued Operations and $(70)m impairments
  • Net debt at $540m before IFRS 16 and $705m after IFRS 16
  • Segment leverage at 0.8x Net Debt/LTM EBITDAs (excluding IFRS 16 impact)

Adjusting to an unprecedented crisis: focus on cost control and cash preservation

  • 2020 Cash Capex around $300 million, down $(75) million vs. previous guidance of March 6, 2020:
  • 2020 Multi-client cash capex, down $(60) million, at around $225 million at 75% prefunding rate
  • 2020 Industrial and development costs cash capex around $75 million
  • Cash costs reduction of around $(110) million annualized and around $(35) million year on year. 

 


Q1 2020 Conference Call

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

From your computer at:

www.cgg.com

From your Mobile or Tablet at:

QR code Q1

A replay of this conference call will be made available the day after for a period of 12 months via the webcast on the www.cgg.com website.

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


France call-in+33 (0) 1 70 70 07 81
UK call-in+44 (0) 8444819752
Access Code8745567
More:

Download Full Press Release (PDF, 271KB, 14 pages)

Download Presentation (PDF, 1.31MB, 24 pages)

Download Quarterly Report (PDF, 431KB, 30 pages)

 

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 4,600 people worldwide, CGG provides a comprehensive range of data, products, services and equipment that supports the discovery and responsible management of the Earth’s natural resources. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).

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