CGG releases 2Q19 results

2Q19

• IFRS figures: revenue at US$335 million, OPINC at US$52 million, net income at US$(98) million.
• Segment revenue at US$340 million, up 24% y/y.
- Geoscience: Focus on more profitable businesses
- Multi-client: Solid sales with high prefunding
- Equipment: Strong volume increase fuelled by Land market

• Segment EBITDAs at US$171 million, up 51% y/y, a high 50% margin driven by increased profitability of Equipment and Geoscience.
• Segment operating income at US$53 million, including US$(37) million impact of the new multi-client amortisation policy, stable year on year, a 16% margin, supported by favourable Multi-Client sales mix and increase in land Equipment volumes.

1H19

• IFRS figures: revenue at US$607 million, OPINC at $71 million, net income at US$(128) million.
• Segment revenue at US$623 million, up 23% y/y.
• Segment EBITDAs at US$290 million, up 46% y/y, a 47% margin.
• Segment operating income at US$64 million, including US$(64) million impact of the new multi-client amortisation policy, a 10% margin.

Financial situation

• 1H19 Net Cash Flow of US$13 million.
• 2Q19 Net Cash Flow of US$(31) million due to US$(58) million negative change in working capital expected to be recovered in H2.
• First semester net cash flow generation improvement of US$147 million.
• Net debt of US$741 million before IFRS 16 at the end of June, liquidity of US$441 million 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."

Read the article online at: https://www.oilfieldtechnology.com/exploration/29072019/cgg-releases-2q19-results/