CGG announced its non-audited second quarter 2013 consolidated results. All comparisons are made on a year-onyear basis with CGG 2012 results before the Fugro Geoscience acquisition.
– Very strong quarter with Revenue up 24% and an EBIT at $117 million corresponding to an EBIT at $128 million not-including a $11 million* negative non-recurring impact
– Group Revenue at $1.032 billion, up 24%
– Group EBIT margin was 11% and 12% not-including the negative nonrecurring impact from the Fugro Geosciences transaction
– Sustained EBIT margin at 28% for the Equipment division in line with forecasts
– Acquisition division’s EBIT margin at 5% with a sequential improvement in marine acquisition and with seasonal weak activity in land acquisition
– Strong EBIT margin from Geology, Geophysics & Reservoir (GGR) division at 26%, notably driven by a high level of multi-client sales at $190 million. 84% multi-client cash prefunding rate
– Strong sequential increase in operating cash flow at $204 million
– Negative free cash flow at $(43) million after payment of $58 million in interest
– Net income of $36 million
– Backlog at the end of June stood at $1.3 billion
CGG CEO, Jean-Georges Malcor commented:
“ CGG, in its new configuration, delivered a very good operational and financial performance over the quarter. Two of our divisions, Equipment and Geology, Geophysics & Reservoir, both achieved high operating margins, confirming the strength of their businesses, positioning and operations. In the Acquisition Division, Marine results were driven by record utilization rates while Land registered a loss, mainly due to the low seasonal activity in North America and severe weather and security conditions in certain countries.
Looking forward to the end of 2013 and 2014, we remain confident about exploration & production spending levels of our clients. While the integration of Fugro’s former activities is progressing well and is already bearing fruit, the reinforcement of CGG in the Geosciences is providing significant new long-term opportunities. In this context, we are confirming our annual objectives, with a second semester that we expect to be characterized by a very strong fourth quarter, especially for Sercel and multi-client.”
[mappress] Press Release, August 02, 2013