OREANDA-NEWS. CGG (ISIN: 0000120164 – NYSE: CGG), world leader in Geoscience, announced today its 2015 fourth quarter and full-year results.

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

“In a very difficult market environment, CGG has delivered a satisfactory level of EBITDAs in the fourth quarter of 2015, due to the strong performance of its multi-client library and the resilience of its Equipment segment.

In 2015, with a sustained level of EBITDAs at 661 million dollars and good discipline in Capex spending, free cash-flow generation improved significantly compared to 2014, underlining our consistent efforts to preserve cash throughout the year.

At the same time, the Group refinanced its debt and successfully completed a capital increase of 350 million euros in February 2016. This enables CGG to start 2016 with $791m liquidity on a pro-forma basis.

2016 will remain difficult with a very weak start of the year. In this context, the Group is resolutely implementing its Transformation Plan, particularly with the reduction in its fleet to 5 vessels by the end of the first quarter of 2016. Contractual Data Acquisition will gradually decline to less than 15% of Group revenue, while GGR will represent more than 60 %. By implementing very rigorous cash management, we target a net debt of less than 2.4 billion dollars by the end of the year.

CGG is refocusing on its high-added value Geoscience businesses while reducing its exposure in its cash-burning activities. In the current, strongly deteriorated market conditions, I would like to emphasize the strong mobilization of all our employees to even better serve our clients and provide solutions to their new challenges, with the same standards of reliability and excellence.”

Fourth Quarter 2015 Results

Revenue at $589m, up 25% sequentially
Operating income, before Non-Recurring Charges (NRC), at $21.1m
EBITDAs at $281.6m, and positive Free Cash Flow before NRC at $52m
Following the strong deterioration in market conditions and our implementation of the new step in our Transformation Plan announced in November 2015, Non-Recurring Charges of $(187)m were booked in Q4 as restructuring costs, mainly related to redundancies
Net Income at $(256)m after NRC
Post-Closing Events

Successful completion of a €350m rights offering on February 5th 2016 related to the new step in our Transformation Plan. CGG capital is now made up of 708,260,768 shares.

Following the completion of the rights offering, effectiveness of the amendment and restatement of the US and French Revolving Credit signed on January 10th 2016.

Fourth Quarter 2015 Key Figures

Before Non-Recurring Charges (NRC)

In million $

Fourth Quarter 2014

Third Quarter 2015

Fourth Quarter 2015
Group Revenue 906 470 589
Group EBITDAs 402 122 282
   Group EBITDAs Margin 44.4% 26.0% 47.8%
Operating Income 111 4 21
    Opinc Margin 12.2% 0.9% 3.6%
Net Financial Costs (40) (50) (90)
Total Income Taxes (53) (72) 5
Non-recurring charges (NRC) (643) (967) (187)
Net Income (667) (1,074) (256)
Cash Flow from Operations before NRC 382 145 167
Cash Flow from Operations after NRC 347 120 118
Free Cash Flow before NRC 187 22 52
Free Cash Flow after NRC
 152 (3) 3
Net Debt
 2,420 2,538 2,500
Capital Employed
 5,166 4,134 3,858

Full Year 2015 Key Figures

Before Non-Recurring Charges (NRC)

In million $

 

FY 2014

 

FY 2015
Group Revenue 3,095 2,101
Group EBITDAs 994 661
   Group EBITDAs Margin 32.1% 31.4%
Operating Income 242 19
    Opinc Margin 7.8% 0.9%
Net Financial Costs (244) (233)
Total Income Taxes (124) (77)
Non-recurring charges (NRC) (939) (1,177)
Net Income (1,147) (1,446)
Cash Flow from Operations before NRC 925 529
Cash Flow from Operations after NRC 864 408
Free Cash Flow before NRC (76) (9)
Free Cash Flow after NRC
 (137) (130)
Net Debt
 2,420 2,500
Capital Employed
 5,166 3,858

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 7,000 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).