CGG Announces its 2020 Second Quarter Results

A quarter impacted by Covid-19 and oil price drop

Swiftly aligning cost structure to the new baseline

PARIS, France – July 29, 2020 – CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its 2020 second quarter unaudited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:“The geoscience market continued to deteriorate this quarter as clients reprioritized portfolios to factor in reductions in E&P spending. Our priority remains the safety of our employees, preservation of cash and maintaining excellent business continuity despite the global spread of Covid‐19. We are swiftly taking actions necessary to align our cost structure with the new baseline, while maintaining focus on our differentiated technologies and key multi‐client investments. With our strong balance sheet and solid strategy and plans, I am confident that CGG is well positioned to successfully navigate through these crises while best supporting our clients’ production optimization, reservoir evaluation and near field exploration challenges."

Q2 2020: Revenue and EBITDAs impacted by the crises

  • IFRS figures: revenue at $239m, OPINC at $(32)m, net income at $(147)m
  • Segment revenue at $202m, down 41% year-on-year
    • Geoscience: Resilient despite backlog decline
    • Multi-client: Supported by ongoing well prefunded projects in mature basins
    • Equipment: Reduced demand with some delays in deliveries due to Covid-19
  • Segment EBITDAs at $68m, down 60% year-on-year, a 34% margin
  • Segment operating income at $(53)m

Supplementary information

  • Adjusted* Segment EBITDAs at $76m before $(7)m of Covid-19 plan costs, down 56% year-on-year, a 37% margin 
  • Adjusted* Segment operating income at $(5)m before $(49)m of non-recurring charges, including $(17)m fair value adjustments and limited $(24)m goodwill impairment
*Adjusted indicators represent supplementary information adjusted of non-recurring charges triggered by economic downturn and unprecedented drop in oil price. 

Sound Liquidity

  • Liquidity of $546m and Net debt before IFRS 16 of $626m at June 30, 2020
  • Q2 2020 Segment Free Cash Flow of $(8)m
  • Q2 2020 Net Cash Flow of $(77)m, including $(25)m 2021 plan and Covid-19 plan cash costs
  • H1 2020 Net Cash Flow of $(60)m, including $(54)m 2021 plan and Covid-19 plan cash costs


Q2 2020 Conference Call

  • An English language analysts conference call is scheduled the same day at 7:00 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 Code1391217
More:

Download Full Press Release (PDF, 223KB, 20 pages)

Download Presentation (PDF, 1.27MB, 25 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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