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CGG provides 1Q20 financial update

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Oilfield Technology,

CGG has provided a financial update for 1Q20 and suspended its full year 2020 financial guidance.

The company anticipates 1Q20 figures as follows:

  • Group segment revenue around US$273 million, down 3% y/y.
  • - Geoscience 1Q20 segment revenue around US$93 million, up 2% y/y
    - Multi-client 1Q20 segment revenue around US$104 million, up 17% y/y, with after-sales around US$47 million.
    - Equipment 1Q20 segment revenue around US$76 million, down 25% y/y.
  • Positive net cash flow around US$25 million during 1Q20.
  • Group’s cash liquidity around US$622 million at the end of March 2020.
  • Net debt at around US$583 million at the end of March 2020.
  • Geoscience backlog as of 1 April 2020 at US$278 million, up 7% y/y.

Sophie Zurquiyah, CEO, CGG said:“In the current Covid-19 pandemic crisis, our absolute priority remains on the health and safety of our employees, stakeholders and the communities where we work. I would like to thank all our teams around the world for their dedication and professionalism in these difficult circumstances. Following a solid first quarter of 2020 and a smooth transition to working virtually, we enter this environment with around US$622 million of cash, a more resilient asset-light business profile, no bond debt to reimburse before April 2023 and no refinancing required. Generation and preservation of cash, meeting our clients’ needs and maintaining our technology differentiation remain our key focus."

The company has said it is delivering geoscience projects on time and its data centres are all operational. Multi-client programmes in Brazil, UK, US and Australia are ongoing. Equipment manufacturing plants in France and the US were shut down on 19 March, while the company's plant in China resumed normal production after closing for two weeks in January.

The company intends to release updated 2020 financial guidance on 12 May 2020 during its 1Q20 financial presentation.

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