CGG Q3 2021 numbers up as reservoir optimisation activities increase

France-based geophysical services company CGG has reported a segment revenue of $270 million for the third quarter of 2021, up 35% year-on-year and 71% sequentially.

In Q3 2021, CGG’s Geology, Geophysics and Reservoir (GGR) segment revenue was at $168 million, up 12% year-on-year and 53% sequentially, and the segment’s operating income was $30 million.

Multi-Client segment sales were at $92 million, up 26% year-on-year and up 149% sequentially, and Geoscience segment revenue was at $77 million, stable year-on-year and up 5% sequentially.

Market recovery is said to be accelerating driven by high-end marine and Ocean Bottom Node (OBN) projects for reservoir optimization mainly for international oil companies.

At the end of September total order intakes were up 10% year-on-year and up over 50% sequentially.

Equipment segment revenue was at $101 million in Q3, up 105% year-on-year and 113% sequentially. Marine equipment sales were $55 million, representing 54% of total sales, due to the scheduled delivery of 18,000 GPR300 nodes.

“I am encouraged by our Q3 results and more importantly by the signs of the gradually increasing demand for our core businesses, supported by the strengthening macro-environment,” said Sophie Zurquiyah, CGG CEO.

“Our differentiated products and services remain fundamental to solving our client’s challenges in complex sub-surface environments, addressing their digitalization needs and reducing their environmental footprint.”

For the nine months of 2021, the French company reported a segment revenue of $640 million, which represents a 5% decrease compared to the same period last year.

The respective contributions from CGG’s businesses were 34% from Geoscience, 25% from Multi-Client (59% for the GGR segment), and 41% from Equipment.

“Beyond the core, we are developing and commercially progressing a growing portfolio of business opportunities targeting digital geoscience, energy transition, environmental geoscience, and infrastructure monitoring. These opportunities leverage our leadership technology positions in sophisticated algorithms, high-performance computing, earth subsurface database and sensors, all of which provide new growth for the company,” Zurquiyah concluded.

To remind, CGG completed the sale of its GeoSoftware business to Topicus and Vela Software at the beginning of October for a total cash consideration of $95 million.