CGGVeritas Announces Third Quarter 2010 Results
Revenue Sequentially Stable at $656m
Group Operating Income Contracted to 4%
PARIS, France – November 9th 2010 – CGGVeritas (ISIN: 0000120164 – NYSE: CGV) announced today its non-audited third quarter 2010 consolidated results. All 2009 results are reported before restructuring.
– Group revenue was $656m, down 10% year-on-year and up 1% sequentially on recovering multi-client sales, including Gulf of Mexico, and continued robust Sercel activity
– Group operating margin at 4% with contrasting performance:
Sercel: margin up to 30%, primarily driven by higher land sales
Services: negative margin due to challenging contract market conditions in marine and North America onshore, offsetting promising trends in multi-client and high-end imaging. In this continued oversupplied marine environment, vessel upgrades and planned repairs were accelerated. Together with increased transits, this drove vessel utilization rates lower in Q3
– Net income was a loss of $33 million including $13 million taxes this quarter
– Operating cash flow was $82 million including the impact of increased working capital which was mainly related to Sercel activity. After capital expenditure, including the Oceanic Vega, and after financial costs, our free cash flow decreased by $93 million
– Net debt to equity ratio at 41%
– Backlog as of October 1st was sequentially up 9% to $1.6 billion with significant long term contract awards
Our 4th quarter is expected to benefit from increased Sercel sales and the promising multi-client trend. Operational cash flow should strengthen in the 4th quarter but not enough to compensate for the decrease in cash flow from the first nine months of the year
See full report on www.cggveritas.com
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