CGG Announces First Quarter 2014 Results
CGG (ISIN: 0000120164 – NYSE: CGG), world leader in Geoscience, announced today its non-audited 2014 first quarter results.
First quarter results reflecting execution of contracts secured end-2013 in low market conditions
– Revenue at $806m
– Operating income at $35m in line with expectations
– EBIT at $18m, including a $(17)m negative contribution of equity from investees, mainly related to the Seabed Geosolutions JV
Solid operational performance over the quarter, notably in Marine:
– Availability rate at 94% and production rate at 93%
– 51% of the fleet dedicated to multi-client programs
First steps in the Acquisition division downsizing plan
– The Symphony vessel was de-rigged in February as announced
– Ongoing reduction in the marine fleet and associated support structure
– Restructuring of Land North America activity ongoing
Backlog was $1.2bn as of 1st April 2014, with marine fleet coverage at 97% for Q2, 60% for Q3 and 10% for Q4
Two successful refinancing operations in April to extend debt maturity at very good conditions
– Issue of a €400m High Yield Bond due 2020 at 5.875%
– Issue of a US $500m High Yield Bond due 2022 at 6.875%
CGG CEO, Jean-Georges Malcor, commented:
“As we have previously indicated, the seismic market remains flattish in a global context of reduced exploration and development spending. In these difficult conditions, which have prevailed since the end of 2013, the first quarter of 2014 was in line with our expectations. It was characterized in land by a low level of activity both in the Equipment market and in the North America Acquisition market, and by a less favorable supply-demand balance for contract Marine Acquisition. However, Geoscience activity remained sustained with a notable high level of multi-client production and sales.
We are fully committed to implementing our 2014-2016 transformation plan which is well underway and remains our priority. The reduction in our fleet and its associated support structure has started. The restructuring of our Land activity is ongoing, notably in North America. We remain focused on our cost reduction, operational efficiency and active cash management program.
We have also successfully launched refinancing operations which have enabled us to further strengthen our balance sheet.”