OREANDA-NEWS. CGG (ISIN: FR0013181864 – NYSE: CGG), world leader in Geoscience, announced today its non-audited 2016 second quarter results.

Commenting on these results, Jean-Georges Malcor, CGG CEO, said: 

“With the rise in crude oil prices during the first few months of the year, we can see early signs of a change in the sentiment of our clients, but this has not, for the time being, led to a recovery in exploration spending, which is still at a very low level. Within this context, the Group remains focused on its priorities of strong operational performance, delivering its Transformation Plan, tightly controlling costs and stringent cash management. 

During this quarter, GGR has seen a satisfactory level of activity with multi-client sales boosted by a high prefunding rate, and a good performance by Subsurface Imaging & Reservoir (SIR). Our Equipment activity continued to be strongly impacted by very low volumes. As announced in our Plan, the contribution from our Contractual Data Acquisition activity is decreasing, with our marine fleet being mainly focused on multi-client programs.

By right-sizing and successfully implementing our Transformation Plan, strictly managing our costs and our cash, we have been able to deliver positive free cash flow over the full half-year, after non-recurring charges relating to the Transformation Plan. In a still uncertain market environment, we plan to continue optimizing our external costs base and to reduce our annual capital expenditure by an additional 50 million dollars. We confirm our aim of net debt below 2.4 billion dollars by the end of 2016.”

Post-Closing Event

The Company carried out on July 20 the reverse stock split that the combined general shareholders’ meeting approved on May 27. All shareholders did receive one new share and all rights pertaining to shares, in exchange for 32 former shares. The first share price on July 20 was calculated on the basis of the last share price traded on July 19 (€0.69) multiplied by 32.

Second Quarter 2016 Key Figures

Before Non-Recurring Charges (NRC)

In million $

Second

Quarter 2015

First

Quarter 2016

Second

Quarter 2016
Group Revenue 473 313 290
Group EBITDAs 112 27 104
   Group EBITDAs Margin      23.6%      8.7%      35.8%
   Group EBITDAs excluding NOR 112 37 109
Operating Income (24.5) (81.3) (22.4)
    Opinc Margin      (5.2)%      (26.0)%      (7.7)%
    Operating Income excluding NOR (19) (54.7) 0.2
Net Financial Costs (46) (41) (44)
Total Income Taxes (1) (6) (6)
Non-recurring charges (NRC) (5) (6) (2)
Net Income (61) (130) (79)
Cash Flow from Operations before NRC 101 238 134
Cash Flow from Operations after NRC 80 196 87
Free Cash Flow before NRC (64) 118 (21)
Free Cash Flow after NRC (85) 76 (68)
Net Debt
 2,497 2,102 2,150
Capital Employed
 5,185 3,681 3,658

 

About CGG

CGG is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation.

CGG employs over 6,500 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers.

CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).